AI Drafter 
TaxTMI 
TaxTMI 
2023 (7) TMI 502
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....icer has erred in passing the order u/s 147 by making the addition when he didn't make any addition on issues pertaining to the reasons recorded u/s 148(2) of I.T. Act. 3. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of assessing officer in making addition of Rs. 25,00,000/- being amount received on account of sale of agricultural land by wrongly considering it as unexplained. 4. It is therefore prayed that assessment framed u/s 143(3) r.s.w 147 of the Act may kindly be quashed and/or addition made by assessing officer may please be deleted. 5. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Brief facts are that assessee is an individual and no return of income was filed by him for the year 2012-13. The Assessing Officer received information that assessee along with one co-owner jointly sold immovable property for a consideration of Rs. 61,06,384/-. The assessee was having ½ share in the said immovable property. On the basis of such information, the Assessing Officer was of the view that inc....
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....ee was not accepted by Assessing Officer by taking his view payment of Rs. 25.00 lakhs was received after execution of sale deed and it is the duty of assessee to rectify the sale deed. The statement of Shri Vijay B Patel was recorded where he stated that he is not aware how much payment was paid for purchasing said agricultural land. Thus, the payment made by Shri Vijay B Patel is not related to purchase consideration. On such observation, the Assessing Officer made addition of Rs. 25.00 lakh in the assessment order dated 28.12.2017 passed under section 143(3) r.w.s. 147 of the Act. 3. Aggrieved by the addition in the assessment order the assessee filed appeal before Ld. CIT(A). Before Ld. CIT(A) the assessee filed detailed written submission. In the submission, the assessee stated that he has received consideration of Rs. 40.00 lakh as a sale consideration, out of which Rs. 15.00 lakh was received on 27.07.2011 and Rs. 25.00 lakh on 03.03.2012. Both the considerations received through cheque, while sale deed executed on 28.02.2012. The sale deed contains the reference of Rs. 15.00 lakh only. The Assessing Officer made addition of Rs. 25.00 lakh by treating that same as unexpla....
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....tion sale deed in appellate proceedings and appears to be an after-thought for payment unconnected with the agricultural land and confirmed the action of Assessing Officer. Further aggrieved, the assessee has filed present appeal before the Tribunal. 5. I have heard the submission of Ld. Authorized Representative (Ld. AR) for the assessee and Ld. Senior Departmental Representative (Ld. Sr-DR) for the Revenue and have gone through the order of lower authorities carefully. The Ld. AR for the assessee submits that admittedly assessee sold rural agricultural land and this fact was accepted by Assessing Officer as well as Ld. CIT(A) that impugned agricultural land situated at Block No.796, area of land 1-93-24 hectare, Mouza Balwada, Taluka Chikhli, Dist. Navsari, which is beyond Eight kilometre from municipal limit of Bilimora Municipality. Therefore, sale consideration received for rural agricultural land is exempt from taxation under section 2(14) of the Act. The Ld. AR for the assessee submits that due to oversight and inadvertent mistake, the consideration of Rs. 25.00 lakh which was paid through banking channel, though subsequently, could not be recorded in the sale deed. Howev....
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....t re-opening is not valid as the reasons to believe is based on mere suspicion and reasons recorded cannot be substituted or supplementary by any subsequent information. To support such submission, Ld. AR for the assessee relied upon the decision of Hon'ble Apex Court in the case of Sheo Nath Singh Vs. Appellate Assistant Commissioner of Income-tax [1971] 82 ITR 147 (SC), Hon'ble Bombay High Court in the case of Principal Commissioner of Income-tax-32 vs. Rajesh D. Nandu (HUF) [2019] 101 taxmann.com 401 (Bom)/[2019] 261 Taxman 110 (Bom) [18-12-2018]. 9. On the other hand, Ld. Sr-DR for the Revenue supported order of lower authorities. The Ld. Sr-DR for the Revenue submits that in the original sale deed there was no reference of Rs. 25.00 lakh received by assessee. On confronting such fact and assessee explained that such credit in the bank account of assessee is a part of sale consideration. The assessing officer recorded the statement of purchaser who expressed ignorance about actual sale consideration. Thus, the credit of Rs. 25.00 lakh was nothing but unexplained credit received by assessee. Before Ld. CIT(A) the assessee tried to cover his case by filing supplementar....
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....ion of sale deed. On confronting such fact, the assessee explained that Rs. 25.00 lakh credit is nothing but a part of sale consideration of rural agricultural land. I find that there is no dispute that impugned agricultural land sold by assessee was rural agricultural land as same is not disputed by lower authorities. The dispute is only with regard to credit of Rs. 25.00 lakh came in the bank account of assessee subsequent to sale deed, if it is a part of sale consideration or not. The statement of purchaser was recorded, he evasively stated that he was not aware about execution of sale deed. However, during pendency of appeal before Ld. CIT(A), the assessee as well as purchaser filed supplementary / rectification sale deed before Sub- Registrar, Chikhli for original sale deed where the consideration amount of Rs. 25.00 lakh was also added and such document was accepted by Sub-Registrar concern. The supplementary / rectification deed filed before Ld. CIT(A) was not accepted by taking view that it is an after thought. In my view, once the supplementary / rectification deed is accepted by Sub-Registrar the fact that subsequent payment of Rs. 25.00 lakh was part of sale consideratio....