TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1672
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.... any valid reasoning and, therefore, was no reason to believe that the income of the assessee have escaped assessment merely on account of deposit on cash in the Bank Account of the assessee. 3. That the re-opening of the case is bad in law, because of the Ld. AO have only relied upon the AIR information and without any independent application of mind, or by making any inquiries and, thus, the re-opening of the case is bad in law. 4. Notwithstanding the above said ground of appeal, the Ld. CIT(A) has erred In confirming the addition of Rs. 10,00,000/- out of the amount received as advance from the agreement to sell, for which, the documentary evidence had been furnished and the same have been ignored without assigning any valid reasons. 5. That the Ld. CIT(A) and having confirmed the addition only on the basis of doubt and suspicion, and by ignoring the documentary evidences is against the facts and circumstances of the case. 6. That the Ld. CIT(A) has erred in confirming the addition of Rs. 6,75,000/-, which was derived from the agricultural activity on 12 acres of land, both of self and taken on lease, cultivated by the assessee and his father ....
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.... agreements as evidence of taking agricultural lands on lease, supported by J-Forms as evidence of sale of agricultural produce, copy of Jamabandi, as proof of ownership of agricultural land by the father of the assessee. 7. The first three grounds of appeal ( Grounds 1 to 3 ) relates to the reopening of the case u/s 148, where the assessee has raised objections regarding independent application of mind of the AO for the purpose of reopening . 8. Ground nos. 4 to 8 relates to the merits of the case regarding the addition of Rs. 10 lacs (Ten Lakhs) which the assessee has explained to have sourced out of advances against proposed sale of agricultural land, and Rs. 6.75 lacs (Six Lakhs Seventy Five Thousand ) being sourced out of agricultural activity carried out by the assessee on agricultural lands owned by the father of the assessee and also on lease lands. 9. In course of hearing, the assessee has filed a summary regarding date-wise deposit of cash in the bank which is reproduced as under: Sr. No. Date Amount of Cash Deposit Remarks 1. 11.05.2011 10,00,000/- Amount received on the basis of Agreement to sell (PB Page 18-22) 2. ll.05.2011 1,....
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.... civil suit filed for specific performance of the contract and the Ld. CIT(A) followed an erroneous approach for just ignoring the agreement to sell.(The copy of the order is enclosed in paperbook at page 72-77). 15. Further reliance is also placed on the judgement of Kolkata Bench of ITAT in the case of Gautam Jhunjhunwala in ITA NO. 1356/KOL/2017 wherein, the Hon'ble Bench has held as under: "9. In the light of the discussion, we are of the opinion that though the agreement to sell is not registered, the vendee can seek decree of specific performance on the basis of unregistered agreement to sell in accordance to law as laid by the Hon'ble Delhi High Court in Devinder Singh Vs. Hari Singh (decision on 26.04.2017) and Hon'ble M.P. High Court in Akshay Doogad Vs. Dr. Laxmanrao Dhole (decision on 18.08.2015). So as discussed in para 5 & 6 supra, in the facts and circumstances of the case, we allow the appeal of the assessee and direct grant of exemption u/s. 54 of the Act. 10. In the result, the appeal of assessee is allowed". 16. Hence, it is hereby submitted that although the said agreement is an unregistered but a valid document as in the above judgment, t....
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.... the cash deposit of 6,75,000/- was made out of the sale proceeds from agricultural produce which was cultivated from the same land. 22. The contentions of the Ld. CIT(A) for rejection of claim of the appellant and the submission of the appellant against the same are summarized as under: 22.1 Land belongs to the Assessee's Father as the name of Appellant's father is mentioned in the Jamabandi records. i. During the year under consideration, the appellant cultivated approximately 12 acres of land jointly with his father and generated agricultural income from the same, which is exempt from tax. ii. From the total land of 12 acres, approx. 10.6 acres of land was taken on lease from Amrik Kaur wife of Rajwant Singh (31 Kanal 14 Marla), Baldev Raj S/o Balwant Rai (9 Kanal 18 Marla)&Hukum Chand S/o Nirmal Kumar (45 Kanal) the copy of Lease deeds along with English translation is enclosed in paper book at page 24-28. It is clearly mentioned in the lease deed that the land was leased to the appellant. The assessee and his father jointly cultivated the same land besides this leased land they also cultivates approx. 1.5 acres of self-owned land. iii.....
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.... Therefore, the addition of Rs. 6,75,000/- should be deleted. 25. Moreover it is also submitted that, the assessee provided necessary details and thus, the onus shifted on the revenue to bring contrary material, but the learned CIT- A merely doubting the agreement to sell and agricultural income without pointing out any specific defect in the documents submitted by the assessee. 26. Reliance in this regard is also placed on the following judgments, wherein it has been held that when the source of the impugned addition made u/s 69 of the Act has been proved, it depicts that the assessee has discharged his onus and accordingly, addition made u/s 69 of the Act deserves to be deleted: 27. ITO vs. Daya Chand Jain Vaidya (1975) 98 ITR 280 Allahabad High Court "When a particular explanation furnished by the assessee and evidence in support thereof is adduced, the onus shifts on the Assessing Officer to falsify the said material or bring new material on record. Mere rejection of good explanation does not convert good proof into no proof". 28. In light of the above submissions, it is hereby submitted that in the case of the assessee, the source of the investment has dul....
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...., lease or mortgage of immovable property. As such the legal validity of the agreement of sale cannot be doubted, more so, considering the fact that the affidavit of both the witness confirming the financial advance, of Rs. Ten lakhs, in their presence, has not been challenged by the AO or the CIT(A) and no examination of witness has been done and as such the averments or affirmation in the sworn affidavit cannot be disputed at this stage. As such we accept the explanation of the assessee that cash of Rs. Ten lakhs, has been deposited in bank out of such advance received, which is a reasonably acceptable explanation in absence of any materials to the contrary. 32. Regarding the issue of compulsory registration of lease deed raised by the ld DR, it is our opinion, that an unregistered lease deed may not be admissible as evidence in court to prove the terms of the lease or to claim any rights based on those terms, but it is still relevant to establish the existence of a landlord - tenant relationship. 33. In the instant case lease deeds, covering the agricultural lands from where the agricultural income is arising to the assessee (lands being leased in his favour), gives a righ....