TaxTMI 
TaxTMI 
2021 (10) TMI 748
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....)-1, Amritsar has erred in law and on facts in rejecting the assessee's explanation that assessee being a pure agriculturist having no other source of income the deposit of cash was out of sale proceeds of agriculture land. 4 That the Id. ClT(A)-Amritsar has erred in law' and on facts in ignoring the fact that the department has failed to make any trail of cash deposit to any other source of income. 5 That the order is bad in law and on facts. 6. That the appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed off. 2. Briefly facts as per record are thatNotice u/s 148 of the Act was issued on 27.03.2015 for the reasons that during F Y 07-08, the assessee had deposited cash of Rs. 54,16,960/- in his saving bank accounts maintained with the ICICI Bank, Sarhali Road. The assessee was required to explain the source of cash credits in his bank accounts with ICICI Bank Ltd, account no.502512 and account no. 500445 wherein a total cash of Rs. 68,03,046/- was deposited. The assessee stated that he is purely an agriculturist and that the cash deposits were out of sale of agricultural land measuring 72 K 18 M ....
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.... in bank and its verification is required to done by the ld. CIT(A) after seeking rebuttal of the AO. 5. The Ld. AR further argued that cash of Rs. 30.00.000, - was deposited on the date of registration itself,as the appellant has no other source of income, it would be fair to presume that the cash of Rs. 30,00.000 - was received from sale of land only and as per the registered sale deed dated 11.05.07, the land was shown to be sold for Rs. 23,26,000/- The sale consideration is stated in the registered deed to have been received through two cheques. Rs. 11,63,000/- each. One of the cheques has been deposited in the bank account no.500445 of the appellant on 15 05.07 "by clearing". In adition, he stated that there are cash credits made as under: Date Mode Amount 09 04.07 By cash Rs. 2200'- 21 04.07 By cash Rs. 50,00,000 - 11 05.07 By cash Rs. 3,000,000/- 13.06.07 By cash Rs. 33,000/- 20.06.07 By cash Rs. 6,00,000/- 26.06.07 By cash Rs. 10,000/- 21.07.07 By cash Rs. 2,00,000/- 23.07.07 By cash Rs. 25,000/- 24.07 07 By cash Rs. 1 1.500 - 18 08 07 By cash Rs. 20,000 - 06.09.07 ....
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.... From the perusal of the assessee's reply to the questionnaire it will be observed that in reply to question no.6 the assessee submitted that he had sold agriculture land and payment received in cash for the same was deposited in the bank account. 8 In the reply he had submitted complete detail of agriculture land sold and the rate at which the land was sold vide two Sale Agreements. One for 49 kanal and second for 20 kanal 3 maria. Copy of Sale Agreements and copy of Sale Deed was also filed along with the reply. 9 It was explained that buyer of land got Sale Deed executed for Rs. 2326000 vide Sale Deed dated 11.5.2007 which was paid by the buyer to the two brothers by cheque. The cheque of Rs. 1163000 received by the assesse is lying credited in the assesee's bank account. 10 Before the execution of Sale Deed the assesee had received the balance amount of his share in cash out of which he deposited in the bank Rs. 30 lacs on 11.5.2007 and the balance amount was deposited on different dates. 11 Copy of Sale Deed executed by the assesse and his brother in favor of Kamaljit Singh and copies of Agreements executed in favour of Kamaljit Singh @....
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....ture of buyer Sh.Kanwaljit Singh and in case the AO had any doubt that these agreements are created documentary evidence he could have verified the same from the handwriting expert to ascertain the genuineness of the same. The AO did neither and simply made the addition in the hands of an innocent, uneducated and pure agriculturist without pointing out even an iota of evidence of any other source of cash deposit in the bank of assessee. 21 The ld.CIT(A) in her order confirmed the addition primarily on same grounds on which the addition was made by AO. The ld.CIT(A) has stated in her order that Sale Deeds executed between the buyer and seller has higher evidentiary value than Sale Agreements. 22 There is no denying the fact that the Sale Deeds executed between the buyer and have full legal entity as they are executed in writing between the seller and buyer in the presence of two witnesses duly signed by all. 23 Moreover, the assessee had conveyed to the AO that he may summon the buyer to confirm the contents of the sale agreements. It was also requested that in case the AO has any doubt to refer the sale agreements, which are signed by the buyer also, to h....
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....ence. 8.We have heard both the sides, perused the relevant material and submission made and citation relied by both the sides.Admittedly,the assessee is an agriculturist who had no source of income other than agriculture income. It is also not disputed that the assessee has sold an agricultural land in the joint ownership to his brother under two unregistered agreement and a registered sale deed under the signature of two independent witnesses. The question before us is to decide whether the value of sale of agricultural land shown in the unregistered agreements viz~a~viz sale deed duly supported with the affidavit of the assessee is true to explain the source of cash deposit in the ICIC bank account of the assessee as above. We have gone through these documents and other submission made by the assessee, however in our considered opinion, the competent authority in this regard is the ld. CIT(A)who had just rejected the evidentiary value of the unregistered sale agreements without examine the facts and rebuttal of AO in terms of apparent may not be real always. He merely held that such a recourse by the appellant is not permitted in law as per provisions contained in chapter VI o....