The Income Tax Appellate Tribunal (ITAT), Pune bench has held that the addition of undisclosed income will sustain unless transaction details of refund made by customer were furnished.
The assessee engaged in the business of trading in the land on a very small scale and also conducts agricultural activity on land taken on rent. The AO treated an amount of Rs.47,20,000/- found in the bank account of the assessee as undisclosed income. It was contended by the appellant that the amount deposited out of earlier withdrawals from bank accounts, agricultural income and represents the turnover of the business.
The CIT(A) held that the deposits to an extent of Rs.21,40,000/- were explained in respect of deposits out of earlier withdrawals and advance received which were refunded later. The net agricultural income of Rs.28 lakhs is not possible giventhe possession of agricultural land in 52R which was not sufficient. The assessee claimed that the advances received from customers were refunded before year-end.
It was observed that the sale bills of agricultural produce were furnished before the AO and was held that the bills were obtained from the non-existent merchant.
Shri Inturi Rama Rao, AMand Shri Viswanethra Ravi, JMobserved that the appellant failed to prove record anything to show that the advances from customers werefunded before year-endand upheld therestriction on the addition to an extent of Rs.12,90,000/- being 50% of Rs.25,80,000/- on account of non-furnishing of requisite details regarding the refund made to customers on account of advances received on land transactions. The appeal of the assessee was partly allowed. Shri M.K. Kulkarni represented the assessee and Shri S.P. Walimbe represented the revenue.
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