COMMISSIONER OF INCOME TAX Vs. PAGARIYA NANDAKISHORE SUWALALJI

JUDGEMENT

(1.) THIS appeal is filed being aggrieved by the order passed by the Income-tax Appellate Tribunal (hereinafter referred to as 'the Tribunal'), Bangalore 'B' Bench, in ITA No. 785/Bang/2009 pertaining to the asst. yr. 2006-07, wherein the appeal filed by the Revenue has been dismissed confirming the order passed by the appellate authority dt. 26th May, 2009.

(2.) THE assessee had purchased mutual fund for Rs. 41,00,000 during the asst. yr. 2006-07. The AO found that the assessee had made cash deposits of Rs. 3,65,000 and Rs. 25,47,000 in State Bank of Mysore (SBM) and Axis Bank respectively on various dates. The assessee stated that the said deposits were made by sale of agricultural products through relatives. The AO completed the assessment and computed the total income by adding the unexplained cash deposit of Rs. 3,65,000 and Rs. 25,47,000 deposited in SBM and Axis Bank respectively and bank interest of Rs. 37,913 received on the said undisclosed cash deposits as per order dt. 29th Dec., 2008. Being aggrieved by the same, appeal was preferred by the assessee before the appellate authority. The appellate authority called for the remand report from the AO and after considering the material produced by the assessee and having satisfied itself on the question of fact that the cash deposits of Rs. 3,65,000 and Rs. 25,47,000 made by the assessee in SBM and Axis Bank respectively had been satisfactorily explained by the assessee, set aside the disallowance made by the AO while computing the income of the assessee as unexplained cash deposits in SBM and Axis Bank on various dates and allowed the appeal by order dt. 26th May, 2009. Being aggrieved by the same, the Revenue preferred appeal before the Tribunal, which, by order dt. 30th Dec., 2009, has confirmed the order passed by the appellate authority holding that the said cash deposits made by the assessee in SBM and Axis Bank has been satisfactorily explained as having derived from agricultural income in view of the documents produced by the assessee. Being aggrieved by the same, this appeal is preferred by the Revenue.

(3.) WE have heard the learned counsel appearing for the appellant and we have perused the original records.