2023 (2) TMI 115

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....nt moves this appeal before your honour in hope of judicious action on following grounds of appeal, which are without prejudice to and independent of each other. 1. Ld. CIT(A) erred in confirming addition of Rs. 54,79,500/- received as "On Money" on sale of agricultural land, shown as such in ITR filed and deposited into bank accounts. The addition hence, may be deleted entirely. 2. Without prejudice to above and assuming that appellant received any income, ld. CIT(A) erred in confirming addition made at Rs. 54,79,500/- as "Income from Other Sources", when AO failed to specify any source to categorize alleged income under head of "Income from Other Sources". The assessment order may, therefore, be declared void-ab-initio a....

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....ai Bank Ltd. Rs. 10,00,000/- 3. Bhingar Urban Co-op. Bank Ltd. Rs. 6,20,500/-   Total Rs. 54,79,500/- Regarding the deposit, the appellant argued before the AO that the alleged cash deposit was made out the sale proceeds received from selling of the agricultural lands on 05/07/2010. However, the AO stated in the assessment order that the entire sale considerations amounting to Rs. 32,00,0001-, Rs. 4,95,0001- and Rs. 4,11,0001- were received through cheques. Since the appellant could not produce any plausible evidences, therefore, the AO considered the entire amount of cash deposit at Rs. 54,79,5001- as income from other sources and added to the total income of the appellant. 5.3.1 During the appea....

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....nt of the appellant that the sale proceeds received were subsequently deposited in the bank account in cash is not acceptable for the simple reason that the AO has already observed during the assessment proceedings that the entire amount of sale proceeds were received by cheque, as such the appellant's claim at appellate stage is contradictory. Also, it seems the appellant knowingly did not submit the full sets of the sale deed wherein the payment schedules are mentioned. Also, the appellant did not produce his bank statements and claimed in casual manner that he deposited cash on the same day the sale deeds were executed i.e. on 13/07/2010. 5.3.3 It is also seen that the appellant sold three agricultural lands for a considerat....

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....in treating the alleged cash deposit amounting to Rs. 54,79,500/-as income from other sources. Accordingly, the sole ground of appeal raised by the appellant is dismissed and the order of the AO is upheld." 3. We have considered the submissions of the parties herein, analysed the facts and circumstances in this case. Admittedly, the assessee received the entire sale consideration amounting to Rs. 32,00,000/-, Rs. 4,95,000/- and Rs. 4,11,000/- through cheques. The assessee could not produce any evidences regarding the source of cash deposits of Rs. 54,79,500/- over and above the aforestated full sale consideration received in cheques and therefore, the revenue added the same in the hands of the assessee as income from other sources. As ev....

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.... decisions, where the assessee has not been able to explain a particular source of cash, in such circumstances, the assessee has been held liable for tax regarding those unexplained sources of income. The Hon'ble Madhya Pradesh High Court in the case Dr. Prakash Tiwari Vs. CIT (1984) 148 ITR 474 (MP) held, where the assessee could not give satisfactory explanation regarding sources of amount then such amount was held assessable as unexplained investment under section 69 of the Act. Hon'ble Punjab High Court in the case of Himmatram Laxminarain Vs. CIT (1986) 161 ITR 7 (Punj) held that in a case where it was found that a secret business was conducted wherein the assessee has invested a certain amount and it was held that such amount was asse....