AI Drafter 
TaxTMI 
TaxTMI 
2024 (4) TMI 734
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..... The addition being against the sanction of law ought to be deleted. It be deleted now. 2. The Id CIT(Appeals) erred in law and on facts in not appreciating that payment of cheques against the purchase of agriculture lands as per sale deeds which were outstanding for being encashed by the vendors were later cleared by exchange of fresh cheques issued as per evidences furnished hence there was no question of presuming that any payment in cash of such amount must have been made earlier. It be so held now and addition of Rs. 95,47,000/- u/s 69 of the Act purely on presumption without iota of evidence be deleted. 3. Both the lower authorities erred in law and on facts in not appreciating that the sellers also having affirmed regarding cheques issued as per deeds being not encashed and that no payments were made before issuing fresh cheques, the provisions of section 69 of the Act could not be invoked as per settled legal position .It be so held now and addition made be deleted. 4. The Id CIT(Appeals) has erred both in law and on facts in not considering the judgments on the point which were relevant to the issue before him and by simply stating that they wer....
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.... issues regarding measurement and title deed. They also stated that the dispute has been resolved now and they will receive fresh cheques from the assessee by January 2018. 4.4 On the other hand, the inspector reported that the impugned property was situated in front of factory premises of M/s Hyfun Foods, an associate concern of the assessee company and used for the purpose of gardening/ volleyball playground by the assessee group. Accordingly, the AO held that the property is in the possession of the assessee group. 4.5 The AO, based on the above, observed that in the land or real estate deal, the seller/vendor receives purchase consideration on or before the execution of sale deed. However, in the present case, the sale deed has been executed by the vendor without encashing the cheque issued for payment of consideration and possession of the property was also given to the assessee as reported by the inspector. There is no explanation that the why the vendor did not present cheques before the bank for clearance. It is very unlikely that a vendor will transfer the land property by executing the sale deed without receiving consideration and even without presenting the cheque ....
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....ddition made by the AO by observing as under: 2.6. Appellant has purchased land bearing survey No. 188 Part-II and 188 Part - I at Mouje Village by registered sale deed no.3712/2014 & 3713/2014 dated 14/7 / 2014 As per the sale deed, appellant has made payment of Rs. 95.47,000/- vide four cheques dated 14/7 / 2014 and possession has been handed over. However, appellant has not shown the above transaction in the books of account. The AO has come to know about the purchase of land on the basis of ITS information and making necessary enquiry from the sub registrar office. AO has also got enquiry conducted from the Inspector and found that plot of land are in possession with the appellant group. The AO has noted that the sale consideration is generally paid by demand draft and if made by cheque, they are usually encashed before signing on the agreements. In the present case, as per the appellant, the land was purchased without making payment at the time of agreement and payment was made only on 29/3 / 2018 It is seen that the assessment order has been passed on 27/12 / 2017 and appellant in order to counter the department's argument has made the payment on 29/3 / 2018 on t....
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....lly made in March 2018 and the fact about the time for payment of consideration was conveyed during the assessment. Still, the AO made addition holding unaccounted investment. In view of the above, the learned AR before us submitted that the assessee has not acquired the impugned land out of undisclosed income and consequently no addition is warranted. 11. On the other hand, the learned DR before us reiterated the findings contained in the respective orders of the authorities below. 12. We have heard the rival contentions of both the parties and perused the materials available on record. There is no dispute that the land in question was purchased by the assessee much earlier through the sale deed and payment for the same was made subsequently. Generally, such transactions are against the prevailing market forces/ practices. Under standard conditions, the buyer needs to make the payment to the vendor on or before the registration of the sale deed. However, there can always be exceptions to such kind of prevailing market practices but the same can be accepted if there is some reasonable justification. With this background, we note certain facts which have not been disputed by t....
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....the assessment order pertained to dated 31-12-2000 and 31-12-2001. The same were found in the possession of M/s. Om Shivam Corporation at the time of search carried out on 04- 03-2005. Thus, till the date of search both the post-dated cheques were not encashed by the assessee. Accordingly to law dealing with negotiable instruments, the validity of both the cheques would have expired on the date of search, therefore, the same could not have been encashed by the assessee even in future. Since the dates of the cheques shows these were not valid on the date of the search in 2005, therefore, it would not be considered as cheques under the law which could be enforced for payments. The AO merely presumed on the basis of recovery of these post-dated cheques that the assessee received cash in lieu of return of these post-dated cheques to M/s. Om Shivam Corporation. However, the AO has not brought any evidence on record to support his presumption. Presumption cannot take place of legal proof. Further the balance amount was to be paid subject to realization of compensation from Municipal Corporation. The agreement also states that cheques in question were given for security deposit. Unless th....