2024 (8) TMI 750

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....ar which is claimed to be out of agricultural sale proceeds of earlier year. The AO may be directed to delete such addition. 2. On the facts and in the circumstances of the case of the appellant, the learned CIT(A) erred in upholding addition of Rs. 16,12,245/- being Long Term Capital Gain u/s. 50C of the Act. 3. On the facts and in the circumstances of the case of the appellant, the learned CIT(A) erred in not adjudicating Ground no.3 relating to addition of Rs. 3,36,435/- being alleged undervaluation of property purchased by appellant u/s. 56(2) of the Act." 3. The assessee filed return of income on 29.03.2017 declaring total income of Rs. 94,580/-. The return was processed under Section 143(1) of the Income Tax Act, 1961 by acceptin....

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....on of Rs. 3,60,400/- on account of unexplained cash credit under Section 68 of the Act. The Assessing Officer further made addition on account of LTCG under Section 50C of the Act amounting to Rs. 16,12,245/- thereby observing that the entire amount of sale consideration as per the value of the sold land assessed by the Registrar and the share of the assessee after calculating the same has to be treated as capital gain arose in the hands of the assessee as per provisions of Section 50C of the Act. The Assessing Officer further made addition of Rs. 3,36,735/- in respect of under-valuation of the property thereby applying the said Section 56(2)(vii)(b)(ii) of the Act. 4. Being aggrieved by the Assessment Order, the assessee filed appeal befo....

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....ally ignored by the CIT(A). The Ld. AR submitted that nowhere in the remand report submitted by the Assessing Officer before the CIT(A) there was anything which clearly state that payments made towards purchase of land was in respect of non-agricultural land. The Ld. AR submitted that the purchase deed could not be produced due to the old Tax Consultant's delay in searching the deed of purchase. The Ld. AR submitted that, at this juncture, the assessee has submitted the said purchase deed, the same may be taken on record. The Ld. AR submitted that all the cheque entries earlier also detailed by the assessee and that should be taken into account. As regard to ground no.3, the Ld. AR submitted that the addition was made under Section 56(2)(vi....