TaxTMI 
TaxTMI 
2016 (3) TMI 648
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.... Rs. 23,05,000/- made by the Assessing Officer u/s 69 of the I.T. Act on account of unexplained investment. 2. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in deleting the addition of Rs. 5,00,000/- made by the Assessing Officer u/s 69 of the I.T. Act on account of unexplained cash payment. 3. The facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in accepting the plea of the assessee that payment of Rs. 5,00,000/- was made on 30.08.2008 without appreciating the fact that both the parties had admitted before the registrar that payment of Rs. 5,00,000/- in cash had been made by the assessee before the date of registry and this very fact was als....
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....08. The assessee furnished the copy of the sale deed and also the total investment made in purchase of this flat amounting to Rs. 28,36,500/- (Rs. 25,00,000/- plus stamp duty of Rs. 3,36,500/-) on being asked about the sources of such an investment by the Assessing Officer, the assessee explained the sources as under: a. Cash Rs. 5,00,000/- b. PO dt. 23.8.08 drawn on Andhra Bank Rs. 13,00,000/- c. Housing loan raised from Andhra Bank Housing Finance Rs. 7,00,000/- d. Out of cash in hand of Rs. 3,40,000/- from prop. business Rs. 3,36,500/- 2.2 Regarding the source of Rs. 5,00,000/-, vide letter dt. 24/11/2011, the assessee submitted as under: "In regard to cash payment of Rs. 5,00,000....
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....up an inference that the property was purchased for a consideration which is much lower than the market value, when the purchase transaction are recorded on the sale deed which was executed before the sub-registrar and the identity of the vendor is disclosed. The ld.CIT(A) also held that the ld. AO was not justified in concluding the investment as unexplained u/s 69 of the Income Tax Act. 5. We have gone through the submissions and the paper book filed by the assessee. We have also heard the rival arguments by both the parties. 5.1. We further observe that at page 55 of the paper book, a certificate has been issued by the seller in respect of the cash payment received amounting to Rs. 5 lakhs from the assessee, being the balance money....
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....he Tribunal has been upheald. 5.4. On perusal of the assessment order, we find that the ld. AO relied on the deeming provision of section 50C for drawing an inference that the property in question was transacted at the market value and the consideration received by the seller was based on such market value which was not shown in the sale deed for transfer of this property. 5.6. Section 50C is a deeming provision for a limited purpose for computation of income from capital gains in the hands of the transferor. Provisions of section 50C is applicable only for computation of capital gains in real estate transactions in respect to seller only and not for the purchaser. Section 50C creates a legal fiction for taxing capital gains in the ha....