TaxTMI 
TaxTMI 
2024 (7) TMI 1431
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....ore the appeal is finally heard or disposed of." 3. Briefly facts of the case are that the assessee appellant is an individual and filed his return on 06-07-2017 declaring an income of Rs. 38,53,2507/-. During the assessment proceedings all the required documents were submitted before the AO. However, the AO being not satisfied, the assessment has been framed by computing the income at Rs. 1,96,53,250/- on the ground that the amount received on sale of agriculture land was unexplained credit in the books of accounts of the assessee appellant. 4. Being aggrieved, with the assessment order, assessee went in appeal before the learned CIT appeal who has confirmed the addition by observing as under: 5.2 Ground No. 2: Vide this ground of appeal, appellant has challenged the findings of Assessing Officer wherein AO has made addition of Rs. 1,58,00,000/- on account of unexplained credit in the books of the appellant despite furnishing relevant material on record and explaining the credit in detail. The appellant has stated that such decision is unjustified and uncalled for. 5.3 I have duly considered the assessment order and reply filed by the appellant during the a....
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.... amount to the appellant's account cash was deposited of the same amount on the same day. Further, the AO has given hisclear cut findings that this happened on 8 instances and whole of Rs. 1.5 crore is shown to be received in F.Y. 2015-16. Further, it is pertinent and relevant to note the findings of AO in his assessment order wherein he has stated as "selling of agricultural land at much higher rate than collector rate and deposit of cash in the bank account of purchaser followed by transfer to assessee account and moreover claiming the income as exempt clearly shows that assessee is trying to introduce its own cash in the garb of sale of agriculture land and then claiming it as exempt agricultural income". 5.6. From the perusal of assessment order and explanation offered by appellant, it is seen that appellant has failed to substantiate its claim of exempt agricultural income amounting to Rs. 1.58 crores. The AO has made a clear cut case of introduction of own money from undisclosed sources in the garb of exempt agricultural income which is further evident from the fact that Shri Kesar Singh had no funds in F.Y. 2014-15 and suddenly there was cash deposit in his bank....
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....book which is the first page of the registry. 3. Due to non-availability of funds in the Bank Account of the buyer, the said cheques could not be encashed, and after prolonged negotiations, fresh cheques have been received during the relevant A.Y., amounting to Rs. 1,58,00,000/- against Rs. 1,98,00,000 as per the registry. 4. It is submitted that the said agricultural land was a rural agricultural land, and the same has been accepted by the Ld.AO and the Worthy CIT(A) has not drawn any adverse inference of the same. 5. Thus the said agriculture land was not a capital asset and the same was not required to be disclosed in the ITR form. 6. The addition has been made in respect of the said payment received from the buyer on account of the sale proceeds of the rural agricultural land which was received in the relevant assessment year as the earlier cheques as per the title deed could not be encashed. 7. It is not the case of the assessee that the amount has been received as an afterthought as the said deed was registered earlier. It is also clarified that in the said sale deed it has been clearly mentioned that the responsibility for clearan....
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....s that the transfer of the property by the assessee was a perfectly honest and bona fide transaction where the full value of the consideration received by the assessee was correctly disclosed at the figure of Rs. 16,500. Therefore, on the construction placed by us, subsection (2) had no application to the present case and the ITO could have no reason to believe that any part of the income of the assessee had escaped assessment so as to justify the issue of a notice under section 148. The order of reassessment made by the ITO pursuant to the notice issued under section 148 was accordingly without jurisdiction and the majority judges of the Full Bench were in error in refusing to quash it. " 11. The department has time and time again failed to prove why the said consideration received by the assessee is not on account of sale consideration and how the same takes the character of the assessee's own money without any cogent evidence. 12. Therefore, the genuineness of the sale deed and the consideration received by the assessee cannot be denied. 13. Therefore, the sale deed is genuine and the department has not been able to prove any other consideration receiv....
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....bers for last many years and which have been shown as opening balance and have been accepted by the Department. c. Chandigarh Bench of the ITAT in the case of Sh. Ashok Kumar in ITA no. 825/chd/2007 dated 18.11.2009 and the relevant discussion is in para 19 of the order, in which, it has been held as under:- "In the totality of facts and circumstances of the case, the genuineness of transactions stands established. The amounts have been advanced through account payee cheques and we find no merit in the addition being made on this account. Their Lordships of Hon'ble Supreme Court in CIT V/s ChuniLal [211 ITR (ST) 11] had held that cash credits received through bank account of wife, son and daughter in law could not be added unless it is proved that they were benamidars of the assessee. In the facts of present case, father of assessee has proved the availability of cash in hands. The requirement of law is not to prove the source of source of cash credit. Accordingly, we direct the Assessing Officer to delete the addition of Rs. 35 Lacs credited to the books of the assessee, being on account of loan received from the father of the assessee. Thus, the grounds No.8 & 9....