TaxTMI 
TaxTMI 
TaxTMI 
2018 (9) TMI 148
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.... 000/- after opening various saving bank account on 17/02/2011 explained & confirmed by such depositors in their statement before the Ld. Assessing Officer out of part payment received from the purchaser before execution and Registration of Sale Deeds for which stamp papers were even purchased on 15/02/2011 but the same could not be executed and registered as the amount of total sales consideration could not be arranged by 16/02/2011. 3. That in the circumstances of the case the LD. CIT(A) has erred in law in not appreciating the Ld. Income Tax Officer had failed to prove the explanation of the appellant as incorrect. In law it is the duty of the Ld. Income Tax Officer to prove that the explanation of the assessee is not correct. 4. The order of the Ld. CIT(A) has been adversely effected due to misconstruing the facts regarding sale proceeds received regarding sale deed No 7144 Dt. 22. 03. 2011 at Rs. 7, 52, 500/- against the exact amount of Rs. 75, 25, 000/- and has wrongly considered the total amount of the conveyance deed executed by Baljeet, Bhupinder and Sher Singh S/o Sh. Laxmi Narayan at Rs. 55, 77, 500/- against the exact amount of Rs. 1, 23, 50, 000/- . By such misco....
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....Singh 01222191021544 20, 00, 000/- Sunil Kumar Phogat S/o Sh. Dariyao Singh 01222191021544 5, 00, 000/- Smt. Sushila W/o Sh. Baljeet 01222191021568 25, 00, 000/- Sunny S/o Sh. Bhupender Singh 01222191021551 20, 00, 000/- Yashwanti W/o Sh. Bhupender Singh 01222191021575 50, 00, 000/- Veena Rani W/o Sh. Sunil Phogat 01222191021650 17, 25, 000/- 5. Accordingly, Rs. 1, 37, 25, 000/- was deposited in the aforesaid accounts and the remaining amount i. e. Rs. 20, 25, 000/-, the assessee had taken back to his home. When the AO asked the bank manager, the details of those persons, the bank manager stated that he was not having the record of them. The AO again asked the assessee to explain the source of deposit of Rs. 1, 57, 50, 000/- and Rs. 5, 00, 000/-. In response, the assessee vide letter dated 29. 01. 2014 submitted as under: "Kindly refer to the above said questionnaire dated 05- 03-2013 in the case of Sh. Sunil Kumar, Aggarwal Bhawan, Jharna Ghat, Hira Chowk, Charkhi Dadri, Bhiwani to the assessment year 2011-12. The detailed reply in reference to above said questionnaire is submitted as under:- 1. Since no assets were either purchased or sold during ....
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....surance Company Ltd. , from where I received salary worth Rs. 3, 32, 320/- for which I have paid the regular income tax with the department. " 6. It was further submitted as under: In this regard, it is submitted that no cash deposit of Rs. 1, 62, 50, 000/- was made in my account with the OBC, Charkhi Dadri. The following family members of our family sold agriculture land worth Rs. 1, 98, 00, 000/-on 15-02-2011 against which the full & final payment was received in the non banking hours on 16-02- 2011. My grandfather Sh. Ramji Lal has got three son namely Laxminarayan, Daryyav Singh & Sh. Jai Singh. The land in question has fallen in the hands of three brothers as stated above after the death of my grandfather near about 60 years back. The above said land has come to shares of our family, uncle family & Tau Family (elder than our father). After the death of my father near about 25 years back and in the hands of Baljeet, Bhupender, Sher Singh sons Prem and Raj Kumari daughters after the death of my tau ji 20 years back. The family tree is as under:- Shree Ramji Lal (Grand Father) 1. Laxminarain 2. Dariyao Singh 3. Vijay Singh Panmeshwari (Widow) Baljeet (Son) Bhupend....
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....of the bank. Shri Raju Ranjan manager called his cashier Shri Suresh Gupta to keep this amount in the locker and locker key may be handed over to Shri Kulwant our cousin brother. On 17-02- 2011 when I reached the bank, the bank manager told me that the amount has been deposited in the name (sunil Kurnar). When I told him that the amount belonged to the above said family members and it is not my individual amount, he felt sorry and stated that he will reverse the entry. Therefore, the reverse entry worth Rs. 1, 57, 50, 000/- was made. Neither any deposit form or withdrawal form was signed by me. Since the amount of Rs. 75, 25, 000/- belonged to my HUF ½ share and ½ share of my mother Smt. Saroj. Thus I opened the bank account with the OBC on 17-02-2011 and deposited Rs. 5, 00, 000/-. My wife is also member of my HUF a sum of Rs. 17, 25, 000/- was deposited in the name of Smt. Veena Rani W/o Sh. Sunil Kumar. Half of the amount which works out of Rs. 37, 62, 500/-. ½ share belonged to my mother Smt. Saroj, she has taken the cash and refused to the deposit the same with the bank. ] Rest of the amount which works out to Rs. 1, 23, 50, 000/- belonging to the three....
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....it of Rs. 1, 57, 50, 000/- and Rs. 5, 00, 000/- and no evidence had been filed by the assessee in regard to receipt of sale proceeds of the above land. The AO also recorded the statements of the persons in whose accounts, the amounts were deposited and observed as under: "i) Annu D/o Sh. Baljeet Singh. In the bank account of this lady, a sum of Rs. 20 lacs were deposited. In her statement, Miss Annu deposed that she received a sum of Rs. 20 lacs from his father out of sale proceeds of his land on 17-02-2011 which was deposited by her in the bank. She did not know the details as to when sale of land was effected particularly when she claimed that she has to do home affairs as his father is not mentally sound. ii) Smt. Sushila Devi. In the bank account of this lady, a sum of Rs. 25 lacs were deposited. In her statement, she stated that she made cash deposit of Rs. 25 lacs after opening a bank account which was received from her husband after sale of land. She did not know the details of land holding, date of sale of land, as she is an illiterate lady. She only knows how to sign. iii) Sh. Sunny S/o Bhupinder Singh. He is a student of BA third year and the amount of Rs....
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....e explained lateron. " 10. Being aggrieved the assessee carried the matter to the ld. CIT(A) and submitted that the AO on the basis of the statement of Sh. Ved Parkash, Manager of the bank held that the deposition made by the assessee in his statement was not true. It was further submitted that the AO recorded the statements of the persons in whose accounts, the cash was deposited and the said persons stated that money was deposited in cash after selling the agricultural land coming from their big grandfather to grandfather to their father and then in the hands of all the sellers. It was further stated that the conveyance deed duly executed by all such persons were submitted to the AO. The total sale consideration in all the sale deed was as under: S. No. Conveyance Deed No. with date Amount Executed by 1. 7145 dt. 22. 03. 2011 75, 25, 000 Sunil and Smt. Saroj 2. 7144 dt. 22. 03. 2011 75, 25, 000 Baljeet, Bhupender Singh and Sher Singh 3. 7260 dt. 25. 03. 2011 36, 50, 000 Baljeet, Bhupender Singh, Sher Singh (Sons) Prem & Raj Kumari (Daughters) 4. 7263 dt. 25. 03. 2011 11, 75, 000 Baljeet, Bhupender Singh and Sher Singh Total Sale Consid....
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....AINTAINING A SAVING ACCOUNT NO 01222191021520 WITH US AND AS ON 17. 02. 2011, A SUM OF RS. 15750000/- HAS BEEN WRONGLY CREDITED AS CASH DEPOSITED IN ACCOUNT AND SAME CASH ENTRY HAS ALSO BEEN REVERSED FROM THE ACCOUNT AS CASH PAYMENT FOR SAME AMOUNT ON SAME DAY. ORIGINAL CERTIFIED COPY IS ENCLOSED. " 13. It was contended that the cash deposit of Rs. 1, 62, 50, 000/- was on account of sale of agricultural land of HUF coming from the forefathers of the family. The assessee also furnished photocopy of intkal varasat through which the land had fallen in the hands of Sh. Sunil Kumar, Sh. Anil Kumar S/o Dariyao Singh, Hemlata D/o Sh. Daryao Singh and Smt. Saroj Bala W/o Sh. Daryao Singh alongwith nakal jamabandi and khasra girdawri. It was also stated that agricultural land of HUF coming from forefather had fallen in the hands of Sh. Baljeet Singh, Sher Singh, Bhupender S/o Laxmi Narain and Smt . Prem and Raj Kumari D/o Sh. Laxmi Narain. Photocpy of intkal varasat vide report No. 396 dated 12. 08. 1989 was also furnished. It was contended that the banking authority himself admitted in writing vide certificate dated 27. 12. 2013 that the cash entry was wrongly credited in the account ....
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....ded by him of the assessee and bank manager Sh. Ved Parkash but ignored the second part of their statements as well as the certificate issued by the banking authorities in this regard. It was contended that the sale considerations in the cases of immovable properties are generally received in cash prior to the date of execution of the conveyance deeds to safeguard the interest of the seller as well as the purchaser. It was also contended that it was categorically mentioned on the first page of the conveyance deed that the full amount had already been received by the sellers at their house before the date of execution of sale deed and that the payment had been received in full and nothing remained receivable by the seller and that the conveyance deed would be executed as and when it suited the sellers as well as the purchaser. The reliance was placed on the judgment of the Hon'ble Supreme Court in the case of CIT Vs Chinnathamban K (2007) 292 ITR 682. It was submitted that in this case, the banking authority wrongly deposited a sum of Rs. 1, 62, 50, 000/- in the name of the assessee on 17. 02. 2011 and reversed the entry suo motu without any direction of the assessee. On the same d....
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....h. Sunil Kumar Phogat s/o Sh. Daryao Singh (Rs 5, 00, 000), Smt. Veena Rani w/o Sh. Sunil Phogat (Rs 17, 25, 000), Smt . Susheela w/o Baljeet Singh (Rs 25, 00, 000) and Ms Annu d/o Baljeet Singh (Rs 20, 00, 000). The Bank also stated that they had no record of the balance amount of Rs. 20, 25, 000/-. According to the ld. CIT(A), the entire transactions appeared to be a method to hoodwink the tax department with the help of banking instruments and that no bank would accept cash without a deposit slip nor make transactions entries on verbal requests. He also observed that the statements of Sh. Sunil Kumar had a query which made it clear that he took the cash of Rs. 1, 57, 50, 000/- to the bank on 16. 02. 2011 and the bank authorities asked to deposit the same the next day, Sh. Sunil Kumar opened an account on 17. 02. 2011 and this entire amount was deposited in his account, within a span of a few hours, he got entry reversed by stating that the amount did not belong to him alone and interestingly, Smt . Veena Rani, Sh. Sunny, Smt. Yashwanti, Smt. Susheela Devi, Miss Annu and the assessee all opened their accounts in this bank on 17. 02. 2011. The ld. CIT(A) confirmed the addition of....
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....in of the assessee Rs. 20, 25, 000/- in cash went to Sh. Sher Singh, another son of Shri Laxmi Narain and brother of Sh. Bhupinder and Sh. Baljeet Singh. It is strange that no money went to Shri Anil Kumar, brother of the appellant nor to the appellant's, surviving uncle, Shri Vijay Singh and the latter's son, Shri Kulwant Singh. 3. This does not appear to be truly accounting for what were the proceeds of the sale of the HUF land. Hence, the property sold by the HUF in actual fact, registered conveyance deed, not withstanding, has nothing to do with the amount deposited in the appellant's bank account. All the transactions in respect of HUF land are distinct and separate from the sources of deposits of Rs. 1, 57, 50, 000/- and Rs. 5 lakhs made in the appellant's bank account. Hence, the explanation offered by the assessee has no substance or relevance to the source of deposits. I, therefore, confirm the addition of Rs. 1, 62, 50, 000/-. " 15. Now the assessee is in appeal. The ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that the amount was belonging to six persons who were having the bank accou....
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....orders of the authorities below and further submi tted that the amount was deposited in the bank account of the assessee, so , onus was on him to prove the sources of the said deposit which could not be explained. It was also stated that the amount was not co-related with the amount mentioned in the sale deed, therefore, the AO was justified in making the impugned addition in the hands of the assessee and the ld. CIT(A) rightly confirmed the same. 17. We have considered the submissions of both the parties and perused the material available on record. In the present case, it is noticed that the AO made the addition by presuming that the cash deposited in the O. B. C, Charkhi Dadri, on 17. 02. 2011 belonged to the assessee. On the contrary, the explanation of the assessee was that the said cash was brought to the bank by Shri Kulwant Singh and it belonged to six different persons who sold their ancestral agricultural land. In the present case, the AO recorded the statement of Shri Kulwant Singh (copy of which is placed at page no. 71 to 74 of the assessee's paper book), in the said statement recorded on 27. 01. 2014, Shri Kulwant Singh categorically stated that he want to the Orient....
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....hat the possession of the land was given prior to the registration done on 21. 03. 2011 on the said date, nothing was due because the amount was already paid so it can be said that the amount in question was the receipt from the sale proceeds of the agriculture land. In the present case, the AO also recorded the statement of the bank managers (copy of which is placed at page no. 52 to 54 of the assessee's paper book), in the said statement, Bank Manger Sh. Ved Prakash stated that he went to income tax office with record on 31. 12. 2013 in response to the summon dated 23. 12. 2013 and that the amount was deposited in the account of Shri Sunil Kumar on 17. 02. 2011 but later on, in the evening the entry was reversed and the amount was deposited in the following accounts :- "(i ) Annu, D/o. Sh. Bal jeet Singh 012221911021044 20, 00, 000/ - (ii) Sh. Suni l Kumar Phogat S/o. Sh. Dariyao Singh 01222191021520 5, 00, 000/ - (iii) Smt . Sushila w/o. Sh. Bal jeet 01222191021568 25, 00, 000/- (iv) Sunny S/o. Bhupender Singh 01222191021551 20, 00, 000/- (v) Yashwanti W/o. Sh. Bhupender Singh 01222191021575 50, 00, 000/- (vi ) Veena Rani W/o. Sh. Sunil Phogat" 01222....