2023 (11) TMI 405

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....e with CBDT Instruction No. 07/2014 [F.NO.225/229/2014-ITA.II], dated 26^th September 2014. On the said ground alone the said addition of Rs. 1,00,93,764/- be deleted and impugned order be quashed. 2.2 Without prejudice, assuming without admitting that the impugned addition of Rs. 1,00,93,764/- was required to be made, the learned CIT(A) has erred in not considering the very fact that the Respondent has not even considered the submissions made by the Appellant in respect of re-investment of capital gains in purchase of another agricultural land and merely confirmed that the re-investment made is not made within prescribed period of 2 years. Therefore, the impugned Assessment Order as well as Appeal Order be quashed to the extent of addition of long term capital gain of Rs. 1,00,93,764/-. 2.4 The learned CIT(A) has erred in not admitting the additional evidence to justify incurrence of expenditure in re-investment of proceeds from sale of agricultural land. 2.5 The reasons of CIT(A) for rejection of admission evidence are incorrect, contrary to facts, bad in law and liable to be quashed. 3. Cash Deposits of Rs. 43,39,000/- treated as unexplained a....

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....him. The Assessee has neither submitted any documentary evidence for the contract work undertaken by him nor has submitted any details to prove the veracity of his submissions. The Assessee has not provided any confirmation or any documents/contract agreements from his clients to prove that he has undertaken and performed the contract work. The Assessee has also not submitted the statement of affairs of his business to support the income earned. Hence, the Assessee's submission that he has received cash from contract receipts is not acceptable. 2.7 The Ld.AO thus issued the SCN dated 14.11.2019 calling upon the assessee as to why the cash deposited and the income from the sale of immovable property should not be brought to tax. 2.8 The Ld.AO observed that assessee deposited cash to the extent of Rs. 45,39,000/- in his bank accounts of Canara Bank and State Bank of India during the F.Y. 2016-17. An amount of Rs. 37,00,000/- has been deposited to his Canara Bank account No.0437101020756 and Rs. 8,39,000/- in his State Bank of India account No. 64002611149 during the F.Y. 2016-17. He thus held that the source of cash remains unexplained. The Ld.AO gave benefit of the basic e....

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....on the sale of land during the year 2016-17. Hence. the total consideration received of Rs. 1,05,00,000/- is brought to tax under the head "Income from Long Term Capital Gain". 2.11 Aggrieved by the order of the Ld.AO, the assessee filed appeal before the Ld.CIT(A). 2.12 The Ld.CIT(A) observed and held as under: "7.5 In the light of above facts and discussion and the legal precedents submitted by the appellant in his written submission, I have come to the conclusion that there are two main issues for determination:- a. Whether the sale of land could have been investigated by the AO under the limited scope of scrutiny? b. Whether the LTCG on the sale of such land was entitled to exemption u/s 54 B or 54 F as claimed by the appellant. 7.6 On the first issue; the AO has started his enquiry from trying to find the source of the cash deposits in the appellant's bank accounts and he has limited enquiry to the same. The deposits in the bank accounts of the appellant included deposits of sale proceeds of the land which are claimed to have been reinvested transaction within the 2 year window provided. 7.7 Thus AO has rightly held that t....

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....other details. 4.6 Under such circumstances, we are of the considered view that the Ld.AO has overstepped his jurisdiction by making an addition in the hands of the assessee by disallowing the deduction claimed u/s. 54F. We direct the Ld.AO to delete the disallowance so made. Accordingly, ground no. 2 raised by the assessee stands allowed. 5. Ground no. 3: 5.1 The next issue in appeal is regarding cash deposited during the financial year relevant to Assessment Year under consideration of Rs. 41,19,500/- u/s. 69. The Ld.AO disallowed Rs. 41,19,500/- as per the rates applicable u/s. 115BBE of Income from business deposited as cash allegedly made prior to the demonetisation period. Aggrieved by the order of the Ld.AO, assessee preferred appeal before the Ld.CIT(A). 5.2 Before the Ld.CIT(A), assessee failed to furnish necessary evidence in support of the claim that the sum of Rs. 41,19,500/- represents sale proceeds of business and therefore this addition so made was upheld. Aggrieved by the order of Ld.CIT(A), assessee is in appeal before this Tribunal. 5.3 The Ld.DR on the contrary, submitted that the cash has been deposited during the period when demonetisati....

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.... OFFICE OF THE INCOME TAX OFFICER WARD 4(3) (4), BANGALORE सेवा में/ To. MUNIYAPPA MUNIRAJU NO 94/6, 8TH MAIN,,NEW OXFORD SCHOOL ROAD. BEGUR MAIN ROAD, HONGASANDRA, BENGALURU 560068 Karnataka India स्थायी लेखा संख्या/ PAN ABBPM4961A महोदय/ महोदया / मेसर्स, निर्धारण वर्ष / AY: 2017-18 नोटिस संख्या / Notice No.: ITBA/AST/S/143(2)/2018- 19/1012209459(1) दिनांक/ Dated: 12/09/2018 आयकर अधिनियम 1961 की धारा 143(2) के अधीन नोटिस Notice under section 143(2) of the Income-tax Act, 1961 सीमित संदीक्षा (कंप्यूटर आ....

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.... के समर्थन में निर्भर हैं/रहेंगे। 2. In this regard, an opportunity is being given to you to produce or cause to produce any evidence on which you may like to rely in support of the said return of income by 24/09/2018 at 01:28 PM. 3. उपर्युक्त निर्दिष्ट प्रमाण / सूचना को आपको ऑनलाइन माध्यम से इलेक्ट्रॉनिक रूप मे incometaxindiaefiling.gov.in पर अपने ई-फाइलिंग खाता द्वारा प्रस्तुत किया जाना है। बाद की निर्धार....

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....ा है तो आपके लिए पैरा 3 लागू है। आपके द्वारा स्वयं अपना खाता न बना लेने तक निर्धारण कार्यवाही आपके द्वारा वर्णित की गई ई-मेल के माध्यम से या मैन्युअल रूप से (यदि ई-मेल उपलब्ध नहीं है) की आएगी। 5. Please note that para 3 is applicable you have an E-filing account. Till the time such an account is created by you, assessment proceedings shall be carried out either through your specified e-mail account or manu....

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....Tax Notice prescribed by Circular No.19/2019 d. 14 August 2019 ALAMELU ANANTHA RAMA KRISHNAN WARD 4(3)(4), BANGALORE In case the document is digitally signed please refer Digital Signature at the bottom of the page) Document 4 Muniyappa Muniraju (PAN: ABBPM4961A) - ITA No.262/BANG/2023 Statement of Cash Receipts and Payments For The F.Y 2016-17 Receipts Opening Balance: Cash Receipts from Work Contracts: Amount 65,360 Amount Payments Cash Deposited To Bank: Amount Amount 65,360 Date 06-04-2015 Cash Deposit Narration 8,00,000 Cash Receipts from Various Parties: 12-04-2016 Cash Deposit 5,00,000 Date Narration 22-04-2016 Cash Deposit 15,00,000 06-04-2016 Cash Received 8,00,000 28-06-2016 Cash Deposit 9,00,000 12-04-2016 Cash Received 5,00,000 02-04-2016 Cash Deposit 7,500 22-04-2016 Cash Received 15,00,000 02-06-2016 Cash Deposit 3,50,000 28-06-2015 Cash Received 9,00,000 06-08-2016 Cash Deposit 5,000 01-04-2016 Cash Received 7,500 03-10-2016 Cash Deposit 10,000 02-06-2016 Cash Received 3,50,000 10-11-2016 Cash Deposit 8,750 ....