TaxTMI 
TaxTMI 
2018 (6) TMI 1120
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.....13(1)/14-15 dated 13.02.2015 arising in the assessment order passed under s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 31.01.2014 relevant to Assessment Year (AY) 2011-12. 2. The grounds of appeal raised by the assessee are as under:- "1. The assessee being a villager and service in govt. department is not much aware about the laws and rules like businessman. He relying on the tax consultant filed a return of income for the A.Y 2011-12 showing total income Rs. 4,22,790/-. 2. The assessee has sold the rural agricultural land exempt U/s. 2(14) 82 lakhs. However, the tax consultant has shown only amount received by cheque i.e Rs. 72 lakhs. The assessee received Rs. 10 lakh in cash for ....
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....Rs. 11.39 lacs in its bank account. The Assessee during the assessment proceedings explained the sources of cash by submitting that he has sold an agriculture land for Rs. 82 lacs only during the year. The sale consideration was received for the sale of agricultural land in a cheque as well as in cash. An amount of Rs. 72 lacs was received through banking channel, and the balance of Rs. 10 lacs was received in cash, which was subsequently deposited in the bank account. The assessee accordingly claimed that the agricultural land is not a capital asset as per the definition of section 2(14) of the Act, therefore, the entire sale consideration of Rs. 82 lacs is exempt from tax. Similarly, the assessee has withdrawn a sum of Rs. 1,44,000/- f....
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....income under the head capital gain on the sale of such agricultural land. The assessee also claimed that he had received a sum of Rs. 10 lacs from the party against the sale of such agricultural land in cash and therefore, the AO erred in treating the amount of cash deposits to the extent of Rs. 10 lacs as unexplained cash credit u/s 68 of the Act. The assessee to this effect has also filed an affidavit before the AO during the assessment proceedings. The assessee also submitted that he requested the AO to take the confirmation from the purchasers to determine the actual amount of sale consideration for the impugned agricultural land after cross verification with him. But the AO has not only taken any confirmation from such purchasers....
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....in the return of income filed by the appellant. If appellant has received any amount over and above the disclosed consideration, he should have filed a revised return disclosing such extra consideration. There is no confirmation from the buyers confirming payment of cash of Rs. 10 lakhs to the appellant. In view of above facts, it is held that appellant could not explain the source of cash deposits of Rs. 11,39,000/- in his bank account. As per the provisions of the income tax act, the burden is on the appellant to explain the source of cash deposits in his bank account which he has failed to discharge Accordingly, the addition made by the assessing officer of Rs. 11,39,000/- is, sustained. Ground number 3 is dismissed." Being aggrieved ....
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....is without any substance. However, we note that the affidavit has been duly furnished by the assessee stating that the sum of Rs. 10 lakhs was received from the purchasers of agriculture land. Thus, in such circumstances and the interest of the justice, we feel that the AO should have verified the purchase consideration from the purchasers for determining the actual sale price of such land and after providing the opportunity of crossexamination to the assessee. Therefore, we incline to restore this issue to the file of the AO to verify the purchase consideration from the purchasers for the agricultural land in dispute and accordingly, adjudicate the issue afresh after giving the reasonable opportunity of being heard to the assessee as per t....
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....on NSC, FDR and from saving bank account. Such income has accrued to the appellant during the relevant previous year. Accordingly, the same is required to be taxed in the relevant assessment year. For above, reliance is placed on following judicial pronouncements: 1] SDB CISCO (India) Ltd, v. Asst. GIT (2004) 88 ITD 373 (Chennai-Tri) : "When the assessee company is switching over to accrual intern on a compulsion made to the Company Law, the assessee cannot argue that it is not maintaining its accounts on accrual system for the simple reason that its day to day accounts are maintained on cash basis." 2] In the case of CIT v. Smt. Singari Bat (1945) 13 ITR 224 (All.) it was held that the assessee could not for the ....