2022 (8) TMI 286

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....0,53,000/- made by the ld. AO u/s. 69 of the Act. 3. The addition made by ld. AO is erroneous as reasons for opening of the case u/s. 147 of the Act has ceased to survive as no addition is made on the grounds which formed the subject matter for opening of case u/s. 147 of the Act. 4. The addition of Rs. 10,53,000/- is merely due to difference in the value of purchase consideration and the cash available with the assessee in his bank account at the time of purchase of land, despite the fact that the assessee had sufficient funds in his bank account as last installment of the agricultural land sold was received on 19.06.2008 amounting Rs. 57,50,000/- and the assessee had made payment of Rs. 10,00,000/- to Sh. Jasbir Singh vi....

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.... assessee had deposited cash of Rs. 80 lacs in his SB Account maintained with State Bank of Patiala, Jakhwali. Accordingly, notice was issued to the assessee requiring him to file his return as no return of income had been filed. It is seen that the notices sent to the assessee were not responded to. Ultimately as per record, it is seen that some counsel did appear on behalf of the assessee. The assessee as per record explained the source from sale of land. The claim was supported by copy of Agreement dated 15.04.2008 The AO accepted the explanation in part, however, the claim of further application of the sale proceeds by the assessee was rejected to the extent of Rs. 10,53,000/-. The AO noticed that the sale of agricultural land for the a....

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....rchase of agricultural land to continue his agricultural activities to earn agriculture income". The fresh evidences filed, it is seen, were remanded to the AO by the CIT(A) who objected to the evidence on the ground that the payment of Rs. 10 lacs made to Shri Jasveer Singh whereas the land was purchased from Shri Jaswinder Singh for Shri Jasveer Singh was not acceptable. The assessee submitted that the payment was made on the instructions of Shri Jaswinder Singh. Since Shri Jasveer Singh had passed away, confirmation from him could not be filed. 7. Para 6.2.1 at page 16 would show that the CIT(A) has dismissed the explanation in regard to the cheque payment of Rs. 10 lacs holding that no evidence from Shri Jasveer Singh's family me....