TaxTMI 
TaxTMI 
2021 (3) TMI 918
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.... The facts in brief as arising from the order of the authorities below are that the assessee in the present case is a limited company and engaged in the business of real estate development. The assessee in connection with its business activities, of acquiring land near Maudi in Gandhinagar district appointed Shri Kanjibhai Desai and Jasmine J Thakkar as land aggregator. Accordingly it makes payment to these land aggregators directly or through its associates through banking channel/ cash. Subsequently, the land aggregators used to withdraw money from the bank for making the advance payment to acquire the lands from the agriculturist. However, wherever the deal for the acquisition of land from the agriculturist has not been matured/materialized due to any reason, the land aggregators used to deposit the cash in their bank accounts which used to be subsequently transferred to the assessee. Thus it was contended by the assessee that whatever money it has received from the land aggregator namely Shri Kanjibhai Desai amounting to Rs. 3.59 crore in the year under consideration represents its own money which was advanced in the earlier year. Accordingly, the question of treating the sum r....
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....t during A.Y. 2010-11 it has made payment of Rs. 23.02 crores to Shri Kanjibhai Desai through banking channel for carry out the land acquisition work on its behalf which was shown as loan and advances in balance sheet as on 31-03-2010 which was withdrawn by Shri Kanjibhai from his bank. However during the year under consideration when land deal was not materialized by the Shri Kanjibhai Desai, he deposited the cash in his account and remitted the money back to it (assessee) through banking channel. Thus it (the assessee) proved the source of cash deposited in the bank account of Shri Kanjibhai and transferred to its account and thus the same does not remain unexplain as alleged by the AO. The assessee also contended that as far as section 68 is concern, it has discharged onus by proving the identity of the Kanjibhai Desai by furnishing PAN. The genuineness of transaction was also proven by the fact that the amount has been transferred through banking. Similarly the credit worthiness of Kanjibhai was also proved by demonstrating that he was having adequate fund in form of cash withdrawn out of amount transferred to him in earlier assessment year. 5.1 The assessee further contended ....
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.... land deal was cancelled he has refunded money to Appellant company and Ashish Patel in subsequent years. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx It is observed that reassessment notice has been issued in the case of Kanjibhai Desai for cash deposits in his bank account and transfer of funds to Appellant Company and while passing the above Assessment Order AO has asked depositor to submit cash book, bank book, sources of cash deposited in bank account, daily cash balance etc., and after verification of all such details, he has not made any addition which means that sources of cash deposit in the bank account of Appellant is treated as explained in the hands of depositors. When sources of cash deposits are as held as genuine in the hands of depositor after verification of all the facts capacity of depositors and genuineness of the transaction cannot be doubted and condequential addition made under Section 68 of the Act for cheque received from such depositor cannot be treated as unexplained. 7. Being aggrieved by the order of the learned CIT (A) the Revenue is in appeal before us. 8. The learned DR before us contended that the assessee was not....
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....s also accepted by the Revenue. Accordingly, we are of the view that there cannot be any question for attracting the provisions of section 68 of the Act in the hands of the assessee for receiving its own money as discussed above. 11.3 Besides the above we also note that the assessee has discharged its onus as provided under section 68 of the Act namely the identity, genuineness and creditworthiness of the parties. For the identity, the assessee has furnished the PAN/address/bank details/confirmation of Shri Kanjibhai Desai which are placed on pages 78 to 106 of the paper book. 11.4 Admittedly, the entire transaction for receiving the money from the impugned party was carried out through the banking channel and therefore there cannot be any doubt on the genuineness of the transactions. The copy of the bank statement is placed on pages 78-79 and 103 to 106 of the paper book. 11.5 Similarly, the creditworthiness of Shri Kanjibhai Desai is also not in doubt as the amount received by the assessee represents its own money which was advanced in the earlier year as elaborated somewhere in the preceding paragraph. 11.6 Moving further, we also note that the assessee has claimed that ther....