TaxTMI 
TaxTMI 
2024 (8) TMI 1225
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....ns of the Act. Thus, the addition of Rs. 37,75,000/- is liable to be deleted. 2. On the facts and in the circumstances of the case and in law, the ld. AO has erred in treating the amount of Rs. 37,75,000/- as unexplained investment of the assessee u/s 69 of the Act and the Ld. CIT(A) has further erred in treating the same as unexplained cash in hand u/s 69A/69B of the Act which is wrong and contrary to the facts of the case and provisions of the Act. Thus, the addition of Rs. 37,75,000/- is liable to be deleted. 3. On the facts and in the circumstances of the case and in law, the ld. AO has erred in reopening the assessment u/s 147 of the Act which is wrong and contrary to the provisions of section 147, section 148 and section 149 of the Act and provisions of the Act. Thus, the reassessment proceedings and the assessment order u/s 143(3) r.w.s. 147 of the Act is liable to be quashed. 4. On the facts and in the circumstances of the case and in law, the ld. AO has erred in reopening the assessment without obtaining prior approval of the Pr. CIT in accordance with the provisions of Section 151 of the Act. Thus, the reassessment proceedings are liable to be q....
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....s to the ground Nos. 1 & 2, the Ld. AR for assessee carried us to Para No. 3 of assessment-order and the documents filed in Paper-Book to explain the AO's stand and also assessee's submission. Ld. AR submitted that the assessee alongwith his brother purchased an agricultural land at Ratlam vide registered-deed dated 04.02.2011, copy of deed is filed at page nos. 14-24 of Paper-Book. Then, Ld. AR drew our attention to page no. 5 of the said registered-deed (page no. 22 of Paper-Book.) where it is categorically mentioned that the consideration of Rs. 75,50,000/- was paid through six cheques having Nos. 083958 to 083963 of Rs. 12.50 lakhs each, drawn on State Bank of India, Ratlam. Simultaneously, Ld. AR also took us to para no. 3 of assessment-order where the AO has himself noted the details of all those six cheques along with their respective dates of clearing from assessee's bank a/c as under: Cheque No. Name of Bank Presented on Amount (Rs.) 83958 State Bank of India 28/06/2013 12,50,000 83959 State Bank of India 27/06/2013 12,50,000 83960 State Bank of India 10/12/2013 12,50,000 83961 State Bank of India 22/04/2013 12,50....
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....y. It defies the preponderance of probabilities. At the best post dated cheques can be accepted only if there is security for realization of sale consideration and only payment of cash in full equivalent to post dated cheques is paid, can be a prudent alternative and that such cash received will be returned as and when the post dated cheques are cleared by the bank. Thus, in my considered opinion the payment of cash in advance and as a security for post dated cheques must have been made by the appellant and such amount is required to be treated as unexplained cash in hand which is liable to be treated as deemed income u/s 69A/69B of the Act. Under the circumstances, I am not inclined to grant relief to the appellant on the issue of addition of Rs. 37,75,000/- which is confirmed and the related ground is dismissed." 7. Ld. AR submitted that the CIT(A) has also wrongly upheld the addition made by AO on self-made presumption that the assessee must have paid consideration in cash and subsequently received cash when the cheques were cleared. This presumption by CIT(A) is baseless and the authorities do not have any piece of evidence or proof to establish the same. Ld. AR submitted th....
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....f the seller and assessee/buyer belong to Dowdy Bohra Communities of Muslims and they are blessed with a strong relationship. Ld. AR further pointed out a categorical fact that the persons of Dowdy Bohra Community do not charge any interest as per their religious customs and they rigorously follow such custom. Therefore, the very claim of Department that no interest had been charged for two years is un-founded in the present case. 10. We have considered rival submissions of both sides, perused the orders of lower-authorities and the documents filed in the Paper-Book to which our attention has been drawn. On a careful consideration of the contemporary documents, we firstly find that the Page No. 5 of the sale-deed clearly mentions that the consideration of Rs. 75,50,000/- was paid through six cheques serially numbered from 083958 to 083963. The sale-deed is executed and registered by stamps authority and cannot be brushed aside. Secondly, we find that the bank statement of Stare Bank of India clearly mentions the details of debit entries of those six cheques cleared on various dates as narrated earlier. The bank statement is also a document issued by bank and cannot be brushed as....