MR. BHAGWAN SHEKUJI SHEJWAL,AURANGABAD V. THE INCOME TAX OFFICER, WARD-1(3), AURANGABAD

ITA 1978/PUN/2024

AI Insights

The case involves Mr. Bhagwan Shekuji Shejwal, who appealed against the order of the CIT(A)/National Faceless Appeal Centre, Delhi, which upheld the addition of Rs.8,10,000 to his income for the Assessment Year 2012-13. The addition was initially made by the ITO, Ward-1(3), Aurangabad, under sections 143(3) r.w.s. 147 and 69A of the Income Tax Act, due to unexplained cash deposits. The assessee argued that the deposits were proceeds from the sale of agricultural land, supported by sale agreements and registered deeds. The Tribunal, after examining the evidence, agreed with the assessee's explanation and allowed the appeal, thereby deleting the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47228 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHAL A MAKAWANE
• Assessee Lawyers: PRASAD BHANDARI
• Keywords: Set aside
• Section: 143(3); 142(1); 143(2); 43; 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1978/PUN/2024 Assessment Year : 2012-13 Mr. Bhagwan Shekuji Shejwal, Datta Nagar, Main Road, Ranjangaon SP. TQ Gangapur, Aurngabad-431136 PAN : BRSPS2318P Vs. ITO, Ward-1(3), Aurangabad Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, AM : This appeal at the instance of assessee is directed against the order of the Ld. CIT(A)/National Faceless Appeal Centre, Delhi dated 09.08.2024 which is arising out the order u/s. 143(3) r.w.s. 147 of the Act for Assessment Year 2012-13 framed by ITO, Ward-1(3), Aurangabad. 2. Brief facts of the case are that the assessee is an individual and filed his return of income for A.Y. 2012-13 on 13.06.2016 declaring income of Rs.1,80,013/- and agricultural income of Rs.96,425/-. Case selected for scrutiny and after validly serving the notices u/s. 143(2) and 142(1) of the Act, the assessment Appellant by : Shri Prasad Bhandari Revenue by : Shri Vishal A Makawane Date of hearing : 15.01.2025 Date of pronouncement : 08.04.2025 ITA No.1978/PUN/2024 2 proceedings were carried out. During the assessment proceedings transactions about the unexplained cash deposits were examined. The Ld. Assessing Officer after considering the submissions of the assessee made addition for unexplained cash at Rs.8,10,000/- and undisclosed interest of Rs.51,948/- and accordingly assessed the income at Rs.10,39,938/-. 3. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) but failed to succeed. Now, the assessee is in appeal before the Tribunal solely against the issue on addition of Rs.8,10,000/- made by the Ld. Assessing Officer u/s. 69A of the Act. 4. The Ld. Counsel for the assessee submitted that out of the alleged sum, Rs.5,50,000/- was the amount received against sale of agricultural land and the remaining of Rs.2,60,000/- was also received on account of on-money receipt from sale of agricultural land. Reference was made to the copy of agreement to sale of agricultural land as well as registered sale deed. 5. On the other hand, the Ld. Departmental Representative supported the orders of both the lower authorities. 6. We have heard the rival contentions and perused the record placed before us. The only issue for our consideration is regarding the unexplained cash deposits of Rs.8,10,000/- which consists of two amounts, Rs.5,50,000/- deposit on 27.05.2011 and Rs.2,60,000/- deposit on 13.06.2011. A perusal of the detailed paper book, we observe that the assessee has sold rural agricultural land on 18.05.2011 for a consideration of Rs.27,20,000/-. The actual sale deed was executed for ITA No.1978/PUN/2024 3 Rs.95,000/- for 35R and Rs.2,50,000/- for 1 Hector 27R. This fact is supported by the registered sale deed and agreement to sale and indicates that the assessee has received sum over and above the actual amount mentioned in the registered sale deed. 7. The Revenue authorities has not disputed the fact that the income from sale of rural agricultural land not being a capital in the instant case is exempt from tax. It is also noticed that in the sale deed dated 18.05.2011 reference has been made for the consideration to be paid by cheque amounting to Rs.4,60,000/- vide cheque No. 664536 dated 18.05.2011 of Bombay Mercantile Co-op. Bank. However, bank statement of the assessee placed at pages 43 to 47 of the paper book shows that such cheque was never deposited. It is clear that in place of cheque the assessee received the cash amount and the same along with the available cash in hand was utilized for depositing cash of Rs.5,50,000/- on 27.05.2011. Similarly, the source of cash of Rs.2,60,000/- was also on account of on-money received from the sale rural agricultural land. Therefore, so far as the source of alleged cash is concerned the assessee has duly explained the source towards satisfaction. Though, the impugned addition has been made for unexplained cash deposit but even otherwise on-money of Rs.2,60,000/- is also to be considered as part of the sale consideration of the rural agricultural land, the profit from sale thereof is claimed to be exempt from tax. Under these facts and circumstances of the case, we are of the considered view that since the assessee has duly explained the source of alleged cash deposits, therefore, impugned addition deserves to be deleted. The findings of the Ld. CIT(A) is set aside and the grounds of appeal raised by the assessee are allowed. ITA No.1978/PUN/2024 4 8. In the result, the appeal of the assessee is allowed. Order pronounced on this 08th day of April, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ददन ंक / Dated : 08th April, 2025. RK आदेश की प्रतितलतप अग्रेतिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. तिभ गीय प्रतितनति, आयकर अपीलीय अतिकरण, “SMC” बेंच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. आदेश नुस र / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अतिकरण, पुणे / ITAT, Pune. "