TaxTMI 
TaxTMI 
2018 (6) TMI 1117
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....lance sheet field during the course of assessment proceedings. 3. On the facts and circumstances of the case, the Ld. CIT(A) has erred in fact and in law in deleting granting the relief of Rs. 4,81,784/- being compensation received from GAIL treating the receipt as capital in nature, ignoring the fact that no rights in land have been transferred. 4. That the appellant craves for the permission to add, delete or amend grounds of appeal before or at the time of hearing of appeal. That the appellant craves for the permission to add, deleted or amend grounds of appeal before or at the time of hearing of appeal. 2. Briefly stated facts of the case are that the assessee filed return of income on 04/03/2011 declaring total income of Rs. 11,24,199/-, which included income under the head "capital gain" and "income from other sources". The case was selected for the scrutiny and notice under section 143(2) the Income-tax Act, 1961 (in short the 'Act') was issued and served. The Assessing Officer observed from the information collected by the Department through Annual Information Return (AIR) that the assessee deposited Rs. 64,00,000/- in cash in saving bank accounts of th....
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....prepared on the basis of the bank statement and other documents as additional evidence and the Ld. CIT(A) has decided the issue after calling for remand report from the Assessing Officer on the additional evidences filed. According to him, the Assessing Officer has already examined the additional evidences on merit and, therefore, there is no violation of Rule 46A of the Rules. He submitted that the Ld. CIT(A) has examined the source of cash deposits on the basis of the cash flow statement and accordingly, relief has been allowed to the assessee, which may be upheld. 3.3 We have heard the rival submission and perused the relevant material on record. In the instant case, the Assessing Officer observed cash deposit of Rs. 64 lakhs in the bank account of the assessee maintained with J&K Bank. Before the Assessing Officer, no compliance was made by the assessee and, therefore, he made the addition. Before the Ld. CIT(A), the assessee filed cash flow statement for the period from 01/04/2008 to 31/03/2009 and 01/04/2009 to 31/03/2010 as additional evidences. The assessee contended that a land at village Bhondsi, Tehsil Sohna, District Gurgaon was sold by the assessee on 12/05/2008 thr....
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.... the date on which the amount of Rs. 2,97,00,000/- was received by him. As per the registered sale deed the appellant received the amount of Rs. 2,97,00,000/- by means of 36 cheques. These cheque nos. along with the corresponding amount are mentioned in the registered sale deed furnished by the appellant. The same cheque nos. are also appearing in the bank account of the appellant for the period 01.04.2008 to 31.03.2009. With the help of the registered sale deed and its bank account for the period of 01.04.2008 to 31-03-2009, the appellant could establish the fact that he received an amount of Rs. 2,97,00,000/- by various cheques which were duly deposited into his bank account. Once, having received the amount of Rs. 2,97,00,000/- on account of sale of land by cheques, the appellant withdrew some of these amount in installment on various dates. After the said cash withdrawals, cash was redeposited in the same account. In order to have an overall picture, the appellant gave a copy of cash flow statement for the period 1-4-2008 to 31-3-2009 and 1-4-2009 to 31-3-2010,. On a perusal of which it is revealed for the period 01.04.2008 to 31.03.2009, out of the amount of Rs. 2,97,00,000/- ....
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....ssessee was not any transaction in this account except bank interest amount of Rs. 644/- & bank charges amount of Rs. 3, 309- now we are rectified. On Rs. 644/- we have not paid the tax. 2. The assessee was paid of Rs. 31, 99,502/- against purchase a land in village of Jacubpura, Gurgaon, Haryana on registry dated 30.10.2009. But this amount was not considered in balance sheet filled by the assessee to laid AO. Now we are rectified. So that difference shown in the cash balances of balance sheet filled by the assessee to laid AO & cash flow statement. Now we are entered these entry and corrected the balance sheet & capital account. Reconciliation of Cash between deposited balance sheet & Cash flow statement Cash balance in deposited balance sheet Rs.52,26,026/- Less: - These entries not considered in the Deposited Balance sheet Cash paid for purchase Jacubpura land on dated 30.10.2009 Paid to smt. Indra Narang 29,59,000/- Stamp Amount 2,23,500/- Registration Fees 15,000/- Other Expenses 2,002/- 31,99,502/- Cash deposited in Axis ....
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.... (Appeals)], any evidence, whether oral or documentary, other than the evidence produced by him during the course of proceedings before the [Assessing Officer], except in the following circumstances, namely :- (2) .................................................................. (3) The [Deputy Commissioner (Appeals)] [or, as the case may be, the Commissioner (Appeals)] shall not take into account any evidence produced under sub-rule (1) unless the [Assessing Officer] has been allowed a reasonable opportunity- (a) to examine the evidence or document or to cross-examine the witness produced by the appellant, or (b) to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the appellant." 3.5 The Hon'ble Delhi High Court in the case of Manish Buildwell P. Ltd (supra) has held that after admitting the additional evidences by the Ld. CIT(A), the evidences should be forwarded to the Assessing Officer for examination by him and for giving rebuttal, if any. Accordingly, relying on the decision of the Hon'ble High Court, we feel it appropriate to restore this issue to the file of the Assessing Officer for d....
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....t by relying upon the judgement in the case ofDr. (Ms.) Avimay S. Haakim (ITA No. 2923 of 2010) and the case of Vijay Ishwar Bhai Desai (ITA No. 544/Ahd/2010). On a careful examination of the case of Vijay Ishwar Bhai Desai vs. ITO, it is found that the compensation received by the assessee for laying down the underground pipeline was held to be a capital receipt not chargeable to tax. In the present case, the compensation received is of a similar nature. The A.O has, in his remand report dated 13-03-2015, acknowledged that the amount was received as a compensation for utilization of agricultural land for laying gas pipe line." 4.4 In the case of Jagan Nath Prasad, HUF (supra) also the identical compensation received has been held by the Tribunal as capital in nature. The relevant finding of the Tribunal (supra) is reproduced as under: "8. I have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is an admitted fact that the assessee received a sum of Rs. 4,75,041/- towards the damages to the land belonging to it and the AO taxed it considering the same as revenue receipt, the Id. CIT(A....