2021 (6) TMI 983

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....o as "Act") for the A.Y. 2014-15. 2. In this case, the Assessee had claimed deduction of Rs. 90 lakhs u/sec. 54 of the Act. The AO after examining the claim of the Assessee held that the Assessee has sold one property on 29/11/2013 for a consideration of Rs. 1,34,03,175/- and subsequently entered into an agreement with Shri Veerapanenu Subba Rao for purchase of property vide agreement dated 19/05/2014 and paid Rs. 90 lakhs (out of total sale consideration of Rs. 1.5 Crore) through RTGS as advance to the seller. The AO examined the seller u/sec. 131 of the Act and noticed that the seller is a close relative of the Assessee and from the bank account statements of the seller it appears that there were withdrawals of Rs. 90 lakhs immediat....

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.... request. However, no evidence was furnished by the Assessee in support of the said explanation. 4. The Assessee is in appeal before us for the amount of Rs. 27.00 lakhs which has been disallowed u/sec. 54 of the Act. It is not in controversy that civil suit for specific performance of the agreement of sale for registration of the sale deed in favour of the Assessee has been filed before the 2nd Additional District Judge, Vijayawada on 14/11/2019 by paying Court fee of Rs. 1,52,426/- and the revenue department not doubted the same. On the basis of documents the Ld. Commissioner clearly held that the sale agreement dated 19/05/2014 by which the property was purchased by the Assessee and advance of Rs. 90 lakhs was paid, is a genuine....

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....he seller's account but without any evidence that cannot be construed that the Assessee has received back advance to the extent of Rs. 27 lakhs from the seller, specifically in view of the fact that the litigations are pending qua registration of the sale deed and in the litigations documents submitted by the Seller also, the amount of Rs. 90 lakhs is in controversy. From the certification of paper book filed by the Assessee it appears that legal notice sent by the Assessee to the seller and reply of the Seller's advocate were produced before the Ld. Commissioner. From the said documents it is clear that the Assessee had issued a legal notice through her lawyer on dated 28-01-2019 to the Seller wherein alleged to have been paid Rs. 90 La....