TaxTMI 
TaxTMI 
2018 (6) TMI 831
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....e learned CIT (Appeals) has erred in deleting the disallowance of Rs. 80,00,000/- made u/s. 40A93) of the I.T. Act, 1961 by the Assessing Officer. 2. On the facts and circumstances of the case and in law, the learned CIT (Appeals) has erred in deleting the addition of Rs. 10,00,080/- made u/s. 68 r.w.s. 115BBE of the I.T. Act, 1961 by the Assessing Officer. Apropos ground relating to disallowance u/s. 40A(3): 3. Brief facts on this issue are as under: The assessee has purchased agricultural land Survey No.42/5, Mouje Navsari, Amravati on 20.12.2012 for Rs. 1,30,00,000/-. The assessee is found to have made cash payments of Rs. 22,50,000/- to Shri Ramesh Singh Pawar and of Rs. 57,50,000/- to Smt. Prabhavati Chavan on 22.07.2....
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.... of the assessee by following case laws: 1. ITO vs. Swapnil Ahirkar (in ITA No. 70/Nag/2015 vide order dated 30.06.2017); 2. M/s. Shree B & B Paradise Land Developers vs. ITO (in ITA No. 446/Nag/2013 vide order dated 31.03.2016); 3. Asst. CIT vs. R. P. Real Estate Pvt. Ltd. (2015) 44 CCH 699 (Mum-Trib); 4. Asst. CIT vs. R. P. Real Estate Pvt. Ltd. (2016) CCH 86 (Chatt. HC); and 5. Saraswati Housing & Developers vs. Addl. CIT (2013) 27 ITR 175 (Del-Trib) 7. We find that in this regard, it may be gainful to refer to the assessee's submission before the Assessing Officer which has not accepted by him. The same reads as under: (1) That in dealing of purchase of Navsari agriculture land bo....
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....cution of sale deed. Actual payment have not made in FY 12-13 (AY 13-14). Section 40A(3) do not give any reference for disallowance for transfer of advance to Trading account which has made in earlier years. Thus the provisions of section 40A(3) not attract. (4) That the said agriculture land purchased had been kept as stock & till today even after passing 3 years time it has not .paid: Purchase of agriculture land is not an expenditure but investment which has kept as stock not yet sold. (5) That the transaction was genuine. Both Issar Chhithi & Sale deed are registered. We have also paid premium to the State Government & taken a permission for purchase. In revenue record it has noted in our name now. (6) That th....
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....t shall be deemed to be the profits and gains of business or profession under sub-section (3A) of section 40A where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees in the cases and circumstances specified hereunder, namely :- XXX XXX XXX (g) Where the payment is made in a village or town, which on the date of such payment is not served by any bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town; XXX XXX XXX (j) Where the payment was required to be made on a day on which the banks were closed either on ....
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....l particulars of ornaments. Further, the Assessing Officer noted that the address was furnished late and the case was time barred by limitation. Hence, he observed that it was not possible to cross verify the purchaser of the gold ornaments. Hence, he made the impugned addition. 11. Upon the assessee's appeal, the ld. Commissioner of Income Tax (Appeals) noted that the above addition have been based on presumption and surmises without bringing any adverse material on record. He noted that the assessee has submitted complete documentary evidences. The Assessing Officer has not examined the party who give the jewellery nor the seller who has purchased it, before rejecting the assessee's submission. He observed that the Assessing Officer ha....