2018 (1) TMI 1074

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or the sake of convenience, by first dealing with Revenue's Appeal. 2. The grounds raised in the Revenue's Appeal read as under:- 1. On the facts and circumstances of the case the Ld. CIT(A) has erred in law in restricting the addition amounting to Rs. 8,19,700/- out of Rs. 12,28,700/- made by AO on account of the opening cash in hand without appreciating the facts brought on record by the AO in the assessment order as no substantial documents has been brought on record regarding the sources of opening cash in hand. 2. On the facts and circumstances of the case the Ld. CIT(A) has erred in law in deleting the addition amounting to Rs. 55,21,687/- made by AO on account of Earned Money received in respect of sale of agricultural land with....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lected for scrutiny and notice u/s. 143(2) of the Act was issued on 20.8.2011 which was served upon the assessee on 24.8.2011 fixing the case for 5.9.2011. Again, notice u/s. 143(2) of the Act dated 9.9.2011 was issued to the assessee. In response to the same, the AR of the assessee attended the proceedings and filed the information and details as called for. Thereafter, the AO made the additions on account of opening cash balance in hand (Rs. 12,28,700), earnest money received in respect of sale of agricultural land (Rs. 55,21,687/), earnest money received in respet of sale of flat at Zirakpur (Rs. 29,55,000), difference in salary received (Rs. 1,01,941) and difference in bank interest income (Rs. 23,576) and assessed the income of the ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd which was less than Rs. 8,19,700/-. However, there was an amount of Rs. 8,19,700/- at its maximum, therefore, Ld. CIT(A) has rightly allowed the credit upto that amount only and sustained the amount of Rs. 4,09,000/- (Rs. 12,28,700 less Rs. 81,19,700) only, which does not need any interference on our part, therefore, we uphold the action of the Ld. CIT(A) on the issue in dispute and reject the ground raised by the Revenue. 7.1 As regards ground no. 2 relating to deleting the addition amounting to Rs. 55,21,687/- made by AO on account of Earned Money received in respect of sale of agriculture land is concerned, we find that the assessee did not refund any part of the earnest money received under the agreement to sell the agricultural lan....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt to sell' a flat booked with a builder but possession was still expected. The AO has not questioned the genuineness of the agreement. The initial payment of Rs. 5 lacs is mentioned in the main body of the agreement. The AO has held that the subsequent payments were not to be made by the prospective buyer. This is not borne out by facts, as the payments which were to be made to the assessee by the buyers in terms of a clause in the agreement, did happen. We note that one of the buyers, Sh. Vikram Singh, appeared before the AO and said that he received a monthly rental income of Rs. 25,000/- to Rs. 30,000/- per month, as also owing 10 acres of agricultural land. He also stated that he had given the advances to the assessee from time to tim....