In the case of Ashok Kumawat vs ITO, Jodhpur ITAT has held that:
We have considered the rival contentions and carefully perused the material available on record. From perusal of the record, we observed that during the assessment proceedings, the A.O. had raised any doubt/query on the credit entries appearing in the bank statement, except loan entries. This fact can be verified from the note-sheet of the case. It is undisputed fact the assessee has received Rs. 13,00,000/ after selling of agricultural land and the A.O. mixed the expense of leveling of land which was sold and resulted in capital gain and house construction expenses. The land was sold on 29/10/2009 and sale proceeds were received. After this date the house construction was started. The A.O. raised objection about deposit of Rs. 49,000/-. It is a common phenomenon in the rural area, out of petty savings in hand for the expenses meted out and after that the same may be deposited in the bank. The assessee also submitted that the amount was deposited partly from the savings lying with him and partly from the withdrawals from bank. The construction expenses started after the date 29/10/2009 i.e. receipt of sale proceeds of land sold. Hence, the presumption of the Assessing officer is not correct, as claimed. The construction bills submitted before the A.O. by the assessee supports the claim made by the assessee. The assessee also submitted that during this and earlier periods, huge withdrawals of Rs.6,84,890/ were made. This amount does not include payments made by cheques. The construction expenses bills mentioned in the remand report are partly in cash and most of them are incurred through cheques like P.R. Enterprises & others, as appearing in the bank statement submitted by the assessee. The unutilized cash balance was deposited back in the bank. Considering the facts and circumstances of the case as well as the fact of selling of agricultural land and doing construction by the assessee, we are of the view that the assessee has explained the source of cash deposit in the bank account and we find merit in the contention of the assessee, therefore, we direct to delete the addition made qua this issue.
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