AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (6) TMI 795
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....) of the Act on September 1, 2011. The case was selected for scrutiny under CASS and notice under section 143(2) of the Act was served on the assessee. In response to the notice, the learned authorised representative of the assessee appeared from time to time and filed the information. The learned Assessing Officer on perusal of AIR information found that the assessee has made cash deposits of Rs. 80,36,000 in Tamil Nadu Mercantile Bank Ltd. between December 6, 2010, to March 19, 2011, and demand draft of Rs. 39,00,000 was credited in the bank account and aggregate deposits worked out to Rs. 1,19,35,000. The learned authorised representative explained the sources for the deposits along with evidence on various dates and submitted that the assessee inherited from his late father along with his mother, four brothers and sister 8.6 acres of agricultural lands at Paruthipattu Village in Avadi and the land was sold for consideration of Rs. 5,34,10,000. The assessee purchased a residential plot at Mangadu and constructed a house in the name of his unmarried daughter out of the net sale consideration and claimed exemption under section 54F of the Act. In continuation to the explanation, t....
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....n sale consideration, family details, source for investment in the property and building completion period and bank account details. The Assessing Officer recorded statement from unmarried daughter of the assessee on whose name the land was purchased and constructed. The Assessing Officer considering the facts and investment in the name of the daughter has rejected the claim of exemption under section 54F of the Act. The learned Assessing Officer on a perusal of the bank account found that the assessee has withdrawn the amounts and paid for purchase of land during the period from December 8, 2010, to January 4, 2011. The Assessing Officer alleged that within a span of 28 days, the assessee has totally withdrawn the sale consideration from bank account and is not disputed. The land was purchased in the name of the daughter, Selvi D. Devakrubai, and withdrawals were utilised for construction of seven flats after obtaining permission from the local authorities. The learned Assessing Officer verified documentary evidence, sale deed and relied on the statement recorded in respect of sale consideration and purchase of the property on suspicion and surmises presumed that the entire sale c....
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....08] 220 CTR 249- Purchase in the name of adopted son. and rejected the claim of section 54F of the Act and also confirmed the investment in property as undisclosed investment of Rs. 97,82,000 and the difference in bank deposits and sale consideration of Rs. 21,53,000. The learned Commissioner of Income-tax (Appeals) considered the findings of the Assessing Officer, observations and written submissions in the hearing proceedings and concluded as no fresh evidence or submissions are filed in the appellate proceedings and confirmed the additions. Aggrieved by the order of the Commissioner of Income-tax (Appeals), the assessee assailed an appeal before the Tribunal. 5. Before us, the learned authorised representative reiterated the submissions of the assessment and the appellate proceedings and argued that the assessee was denied exemption under section 54F of the Act and he being a retired employee inherited agricultural land at Paruthipattu adjoining Avadi Municipality as per the will executed by the assessee's father late Dharmaraj Nadar dated January 19, 2001. The agricultural land inherited by the wife of the deceased (mother of the assessee) five sons, sister and mother of ....
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.... and the Inspector reported that the property was constructed by the assessee but the Assessing Officer under suspicion the entire sale consideration was utilised for some other purpose and the amount invested in construction of property at Mangadu is different and made addition as undisclosed investment without any evidence. 6. The learned Assessing Officer further made an addition of Rs. 21,53,000 as unexplained income. The assessee inherited the property as the legal heir along with his brothers, sister and mother. The mother and sister co-operated in selling the property and as per the internal family arrangement the sister is paid Rs. 35,00,000 and Rs. 10,00,000 was paid to the mother as charge was created as per the will of the late Dharmaraj Nadar. At the time of transaction of sale, instalment of the sister was paid and was out station and mother was living with the assessee. Therefore, the amount of Rs. 10,00,000 paid to the assessee's mother was deposited in the assessee's account and similarly Rs. 11,53,000 instalment of sister share was also deposited in the bank account. The Assessing Officer recorded the statement and has overlooked the charge created by the ....
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....ision and with the support of family members. The learned authorised representative drew our attention to the Tamilnadu Mercantile Bank account at page 55 of the paper book explaining the credits of sale proceeds deposited from December 6, 2010, to December 15, 2010, and the assessee has withdrawn the total consideration during the period from December 21, 2010, to January 4, 2011. It is clearly evident from the action of the assessee that money was withdrawn and utilised for purchase of land in the name of daughter on January 21, 2011, before the end of the previous year and commenced construction of residential flats. The findings of the Assessing Officer based on suspicion without considering the construction expenditure incurred towards labour, materials on day-to-day basis being highly unorganised sector. The observations of the Assessing Officer that the money has been used for some other purpose and investment are made in the construction of the residential property is from undisclosed source which are different from the Tamilnadu Mercantile Bank Ltd. are without any basis or evidence. But on a perusal of the bank account produced in hearing proceedings, we found that cheque....