TaxTMI 
TaxTMI 
2018 (7) TMI 1252
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.... employee filed his return of income by admitting total income of Rs. 3,74,520/-. The return filed by the assessee was initially processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). Subsequently, the case was selected for scrutiny and after following due procedure, the assessment was completed u/s 143(3) of the Act. During the course of assessment proceedings, the Assessing Officer (AO) has noted that on verification of bank accounts of the assessee, it is noticed that huge cash deposits have been made in his Indian Overseas Bank Account. When the assessee was asked to explain the source of these cash deposits, he submitted that he sold his urban agricultural land of 2. 02 acres for a consideratio....
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....ment except the unregistered agreement dated 23. 08. 2011. In view of the above, the AO has treated the entire deposit of Rs. 99,00,000/- as unexplained cash deposit in the bank account u/s 68, accordingly the income is assessed to tax under the head 'income from other sources' and the same is added to the total income of the assessee. 3. Before the Ld. CIT(A), the assessee has submitted that the subject land has been sold by the assessee by executing General Power of Attorney (GPA). The land was sold to one Mr. Atluri Ram Babu for a consideration of Rs. 1,00,50,000/- vide GPA dated 24. 08. 2011 which is registered before Jt. Sub Registrar, Gudivada with document bearing No. BK-4 of 73/2011. The Ld. CIT(A) by considering the above explanat....
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....ssee has submitted that the assessee has executed the sale agreement unregistered on 23. 08. 2011 and received Rs. 1 crore and the same is deposited in the assessee's bank account, therefore, the AO ought not to have doubted the genuineness of the transaction. It is further submitted that when the assessee sold the property through unregistered sale agreement, received the money, there is no obligation on the part of the assessee to produce the buyers and to prove the credit worthiness of them. Therefore, the AO is not correct in calling the assessee to produce the buyers and also prove their credit worthiness. The Ld. Counsel for the assessee further submitted that the assessee has submitted that subsequent to the sale agreement, the asses....
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.... assessee has not responded and no details were furnished. Under those facts and circumstances of the case, the AO has disbelieved the unregistered sale agreement and also consideration received and accordingly treated the entire amount received as unexplained cash deposits in the bank account by invoking section 68 and the same is added to the total income of the assessee. Before the Ld. CIT(A), the assessee has filed the GPA dated 24. 08. 2011 and submitted that he has received an amount of Rs. 1,00,50,000/- as a sale consideration from Mr. A. Ram Babu and the same is registered before Jt. Sub Registrar, Gudivada. The Ld. CIT(A) by considering the GPA directed the AO to delete the addition made by him. It is a fact that the assessee has n....