TaxTMI 
TaxTMI 
TaxTMI 
2021 (3) TMI 1483
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....he order of the authorities below are that the assessee in the present case is a limited company and engaged in the business of real estate development. The assessee in connection with its business activities, of acquiring land near Maudi in Gandhinagar district appointed Shri Kanjibhai Desai and Jasmine J Thakkar as land aggregator. Accordingly it makes payment to these land aggregators directly or through its associates through banking channel/ cash. Subsequently, the land aggregators used to withdraw money from the bank for making the advance payment to acquire the lands from the agriculturist. However, wherever the deal for the acquisition of land from the agriculturist has not been matured/materialized due to any reason, the land aggregators used to deposit the cash in their bank accounts which used to be subsequently transferred to the assessee. Thus it was contended by the assessee that whatever money it has received from the land aggregator namely Shri Kanjibhai Desai amounting to Rs. 2.65 crore in the year under consideration represents its own money which was advanced in the earlier year. Accordingly, the question of treating the sum received by it as unexplained cash cr....
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....ores to Shri Kanjibhai Desai through banking channel to carry out the land acquisition work on its behalf which was shown as loan and advances in balance sheet as on 31-03-2010 which was withdrawn by Shri Kanjibhai from his bank. However during the year under consideration when the land deal was not materialized by the Shri Kanjibhai Desai, he deposited the cash in his account and remitted the money back to it (assessee) through banking channel. Thus it proved the sources of amount deposited and transferred to its account and thus the same did not remain unexplain. The assessee also contended that as far as section 68 is concern, it has discharged onus by providing the identity of the Kanjibhai Desai i.e. by furnishing PAN detail. The genuineness of transaction was also proven by the fact that the amount has been transferred through banking banking channel. Similarly, the credit worthiness of Kanjibhai was also proved by demonstrating that he was having adequate fund in form of cash withdrawn out of amount transferred to him in earlier assessment year. 6. The learned CIT (A) after considering the facts in totality as discussed above deleted the addition made by the AO by observin....
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....also stated that he has received funds from Appellant Company in A.Y. 2010-11 and when land deal was cancelled he has refunded money to Appellant Company and Ashish Patel in subsequent years. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx It is also observed that disputed facts in present case are that entire cheque received for Rs. 2.65 crores by appellant from Kanjibhain Desai is out of bank deposits made by such depositor. It is observed that reassessment notice has been issued in the case of kanjibhai Desai for cash deposits in his bank account and transfer of funds to Appellant Company and while passing the above Assessment Order AO has asked depositor to submit cash book, bank book, sources of cash deposited in bank account, daily cash balance, etc. and after verification of all such details, he has not made any addition which means that sources of cash deposit in the bank account of Appellant is treated as explained in the hands of depositors. When sources of cash deposits are held as genuine in the hands of depositor after verification of all the facts, capacity of depositors and genuiness of the transactions cannot be doubted and consequential ....
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.... 57 of the paper book. The relevant extract of the balance sheet is reproduced as under: Land Advance Group Summary 2-April-2010 to 31 March 2011 Opening Balance Transactions Closing Debit Credit Balance Kanjibhai Bhemabhai Desai 23,02,89,000.00 Dr 1,61,00,000.00 3,69,00,000.00 20,94,89,000.00 Dr 11.2 It was pointed out by the learned AR before us that the amount received from the land aggregator namely Shri Kanjibhai Desai represents the own money of the assessee which was advanced on the earlier occasion and the same was returned in the year under consideration on account of non-execution of the land deals. The learned DR before us has not brought any iota of evidence suggesting that money received by the assessee does not represent the money which was advanced by it on the earlier occasion. Thus it can be safely inferred that the amount received by the assessee represents its own money which was advanced in the earlier year and this fact was also accepted by the Revenue. Accordingly, we are of the view that there cannot be any question for attracting the provisions of section 68 of the Act in the hands of the assessee for receiving its own money as discus....