Income Tax Appellate Tribunal Delhi Dr. Shashank Tyagi, New Delhi vs Department Of Income Tax ITA NO. 2789/DEL/2008 A.Y. 200405 IN THE INCOMETAX APPELATE TRIBUNAL DELHI BENCH "G": NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA No. 2789/Del/2008 A.Y. : 200405 ITO, WARD 2(3), vs. Dr. Shashank Tygai, MEERUT (UP) A34, Chanakya Puri, Shastri Nagar, Meerut (PAN: AAYPP8606K) (Appellant) (Respondent) Assessee by : Shri V.K. Goel, Adv. Department by : Shri B.K. Rao, Sr. DR ORDER PER SHAMIM YAHYA : AM This appeal by the revenue is directed against the order of the ld. CIT(A) dated 27.6.2008 for the assessment year 200405. 2. The issues raised read as under: "Whether in the facts and circumstances of the case the ld. CIT(A) has erred in deleting the addition of Rs. 6,63,831/ on account of unproved investment." "Whether on the facts and circumstances of the case ld. CIT(A) has erred in ignoring the fact that different explanations of the sources of 1 ITA NO. 2789/DEL/2008 A.Y. 200405 investment of Rs. 7,07,500/ was tendered by the assessee at different times" "Whether in the facts and circumstances of the case ld. CIT(A) has erred in ignoring the evidence brought on record by the ITO to negate the possibility that the sale proceeds of land sold by the assessee 5 years ago were held by the assessee's cousin in the form of IVPs." "Whether in the facts and circumstances of the case as the ld. CIT(A) has erred in holding that agricultural income of last five years was received in cash by the assessee in the year under consideration." "Whether in the facts and circumstances of the case ld. CIT(A) in holding that the assessee had paid a sum of Rs. 1,12,500/ to the University out of examination fees collected by him, ignoring the fact that no evidence in this respect had been filed before the ITO." 3. In this case the assessee is an individual. During the relevant period he was lecturer in Dr. Sataya Prakash Memorial Charitable Trust. The case was reopened in view of the information that he had made unexplained investment to the tune of Rs. 7,07,500/ in Dr. Sataya Prakash Memorial Charitable Trust. The assessee explained that source of investment was Rs. 583800/ as rent received from his brother and the rest investment of Rs. 69420/ from contribution from his wife and mother. Later on in the assessment proceedings the assessee 2 ITA NO. 2789/DEL/2008 A.Y. 200405 submitted a letter explaining that assessee had sold agricultural land for Rs. 4,80,000/ on 25.2.1999 and the sales proceeds were given to his brother Shri Indu Tyagi, who purchased the IVP from a needy person having maturity value at Rs. 5,00,000/ . Hence the investment of Rs. 707500/ in the said charitable trust was from IVP payment plus salary savings plus savings account. AO did not accept the explanation regarding the amount received from encashment of IVP and held that Shri Indu Tyagi confirmed that cash amounts were given by Shri Indu Tyagi to the assessee as rent of agricultural land. Hence he added Rs. 5.10 lacs. AO further added the balance of Rs. 109280/ shown by the assessee in his capital account as on 31.3.2004 being agricultural rent due to be received from Shri Indu Tyagi. AO observed that assessee himself has shown agricultural income from earlier years. Hence AO added Rs. 109280/. AO further observed that there were further cash deposits in assessee's bank account, which the assessee explained that he has received the same on account of fee paid by the students or MBBS, BDS, BST in cash. As assessee had been appointed controller of examination and he had deposited these cash deposits in bank for safety