TaxTMI 
TaxTMI 
2023 (3) TMI 1047
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....appeal:- "1. The Learned Commissioner of Income Tax (Appeals)-10, Ahmedabad has erred in law and on facts of the case in confirming the payments of Rs. 40,22,500/- made by Shri S.M. Bharwad and Shri Shantilal K. Patel as unexplained income of the appellant u/s. 69 of the I.T. Act, 1961. Your Appellant prays to reserve the right to add, alter, amend and/or withdraw any of the above grounds of appeal." 3. The brief facts of the case are that the assessee is an individual and had earned interest income during the year under consideration. The assessee had purchased a plot of land jointly with Mrs. Nittalben Patel for a total consideration of Rs. 1,74,26,500/- on 09-04-2013 vide registered deed. The said plot of land was pu....
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....rs of the land. Accordingly, 50% share of the total purchase cost (including stamp duty, registration fees etc.) which was paid by M/s VRS infrastructure as detailed above, was recorded as unsecured loan in the books of the assessee. The assessee's case was selected for scrutiny and the AO asked the assessee to furnish explanation regarding payment of Rs. 40,22,500/-made to Shri Shanti Lal Patel and Shri MS Bharwad. The assessee filed letter dated 10-12-2016 giving detailed explanation regarding the transaction as narrated above. However, the AO held that the amount of Rs. 80,45,000/- shown as unsecured loan in the name of M/s VRS infrastructure by the assessee and the co-owner is the unexplained income in the hands of assessee and made add....
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....gricultural to non-agriclutural. Therefore Rs. 40,22,500/-was paid each to Shri Shanti Lal Patel and Shri SM Bharwad by way of issuing of cheques. The copies of cheques were also placed on record before the Ld. CIT(Appeals) for his perusal and records. The assessee further submitted that in case payment of Rs. 80,45,000/-was not made to Shri Shanti Lal Patel and Shri SM Bharwad, then the same would have been recovered by sellers as part of sale consideration. Accordingly, the assessee submitted that the action of the AO in not considering the said amount as purchase cost and adding Rs. 40,22,500/- to the total income of assessee's is unjustified in the instant set of facts. However, Ld. CIT(Appeals) dismissed the appeal of the assessee by h....
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....ntilal K. Patel as a part of the total consideration of Rs. 1,74, 26,500/- and paid the balance amount of Rs,93,41,000/- to 23 co-owners of land. However, the total transaction has been arranged in such a way so as to circumvent various laws as S.M. Bharwad and Shantiiai K. Paiel are not part of transaction directly or indirectly. There is no understanding or any documentation between the appellant and these two persons S.M. Bharwad and Shantilal K. Patel so as to pay on her behalf. As per facts on record S.M. Bharwad and Shantilal K. Patel appear to have some relationship with VRS Infrastructure. The appellant had purchased the land from 23 Co-owners and S.M. Bharwad and Shantilal K. Patel are not part of this ground of 23 persons. It is n....
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....said flow of transactions, the Department has added the amount in the hands of the assessee without any cogent reasons. The assessee produced before us copy of conversion premium pay order issued by the City Mamlatdar at page 7-8 of the paper book. The assessee also produced before us approval letter by Government Authority for conversion of agricultural land to non-agricultural land at page 9 of the paper book. The assessee also produced before us details of payment of conversion premium along with copies of cheques issued by Shri Shanti Lal Patel and Shri SM Bharwad to the concerned Government Authority. On going through the relevant documents placed before us and the flow of transactions which has been elaborated before us, we are of the....