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2025 (2) TMI 1361
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....and cheque was not cleared. The payment was duly recorded in the books of accounts. 1.1 The Ld. CIT Appeal has further erred on fact and in law in upholding the above addition even though no incriminating document regarding alleged unexplained payment in cash was found in search. 2. The Ld. CIT Appeal has erred on fact law in law in upholding the addition of Rs. 1,37,500/- on account of unexplained investment in purchase of plot of land at Chaksu without considering the facts that the payment is duly made by cheque and recorded in the regular books of accounts. 2.1 The Ld. CIT Appeal has further erred on fact and in law in upholding the above addition even though no incriminating document regarding alleged unexplained payment in cash was found in search. 3. The appellant prays your honor's indulgence to add, amend or alter all or any of the ground of the appeal on or before the date of hearing." 3. Succinctly, the fact as culled out from the records is that there was a search and seizure action u/s 132 of the Income Tax Act, 1961 on 28.07.2016 of which the assessee is one of the group member covered u/s 132. Consequent to the search notice....
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....०शाखा दीनानाथ जी का रास्ता, जयपुर 906956 27.05.2013 1,16,000/- उक्त 906957 27.10.2013 1,17,000/- उक्त कुल 4,31,000/- However on verification the assessee could not furnished copy of bank statement of Integral Urban Corporative Bank limited, Jaipur from which the payment has been shown in the sale deed. Hence, it is quite evident that no such payment has been paid by the assessee through cheque as mentioned in the sale deed and all the transaction was paid through cash only and the detail mentioned in the sale deed is nothing but a coloring device to dupe the Department. Hence, the investment to the extent to Rs. 431000/- has been made by the assessee from his undisclosed income on the date of registration of sale deed i.e. 30-07-2012 and same is undisclosed investment of the assessee u/s 69 of the IT Act for AY 2013-14. (b) Plots at Surendra Nagar, Chaksu: The assessee has also purchased imm....
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....ngs the appellant has not tried to explain the sources of said cash deposits. Further on the issue, the appellant has not submitted the copy of cash book for the period. It is also not verifiable whether the entries of cash deposit in bank account are recorded in the cash book or not. Further, from where the cash came with the appellant is also concealed by the appellant. The status of the books of accounts has already been discussed in the earlier ground of appeal wherein these books have been found to be unreliable and have been rejected. In view of the above discussion the sources of the payment of the property in question remain unexplained as the banking channel payment is merely a layer as the sources are from the cash which was deposited in the bank account immediately before the making of these cheque payments by the appellant. Accordingly, the addition made in the assessment order is hereby upheld and the appeal of the appellant on the issue is hereby dismissed. 5. Aggrieved from that finding of ld. CIT(A), the assessee carried the matter before this Tribunal on the grounds as reproduced hereinabove. To support the various grounds so raised by the ld. AR of the....
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....uestion of non verification of sourse does not arise. The fact is verifiable from following document attached herewith as submitted during course of assessment proceeding: * Copy of conveyance deed for purchases of land (page 1-7) * Ledger account of purchases in books includes purchases of this land at cost 431000 (page 8) * ledger account of seller Sri Ram Swaroop Gurjar with details of payment made against purchases in cash (page 9) * Copy of cash book of relevant period for verification of payment made accounted in regular books (page 10-11) * ITR, Balance sheet and trading and profit and loss account, capital account.(Page 14-20) 1.2 The ld A.O made addition for cost of this property alleging unexplained investment in purchases of agricultural land due to no cheque mentioned in deed encased. However the fact which clearly explained during course of assessment proceeding are that at the time of execution of sale deed, the assessee given post dated cheque and mentioned in deed (page 4) but later on the buyer has returned the cheque and paid it by cash. The cash payment has been duly recorded in books of accounts which are ver....
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....against the fact in upholding the addition Rs 137500 for purchases of property at plot no 10 Surender Nagar, Chaksu from Smt. Bhagwati Saini in proprietary concern of assessee M/S A.R. Properties and colonizers through agreement dated 12-11-2012 at cost Rs 137500 and payment of which has been made by account payee cheque and these cheque encased as under: 09-11-2012 PNB 12-11-2012 PNB 17-12-2012 PNB 55000 55000 27500 Copy of account of seller and bank account of relevant period submitted(page 12- 13) The ld A.O made addition without considering this facts arbitrarily. The ld A.O further alleged that the source could not verified on considering that the assesse has deposited Rs 150000/- on 29-10-2012 and Rs 100000 on 1-11-2012 in bank account before the payment of Rs 55000/-.Rs 55000 and Rs 27500/-. The argument of ld A.O considering the payment unverified is baseless as first of all the payment has been made by cheque and recorded in regular books of account and bank statement, secondly the cash deposit in bank are separate transaction of different day and different amount and the cash deposit duly recorded in books of account and cash book produced during course of hearing which f....
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....the ld. AO reads as under : Sub:- In the appeal matter pending before the Hon'ble ITAT, Jaipur in the case of Sh. Chandra Mohan Badaya Jaipur (PAN:-AEPPB8451D), ITA No. 1054/JPR/2024 for A.Y. 2013-14 - regarding Sir, Kindly refer to your good office letter no. 987 dated 13.01.2025 on the above mentioned subject. The requisite comments are as under: The Ground of appeal (i) The Ld.CIT Appeal and AO has erred on fact law in law in upholding the addition of Rs. 4,31,000/- on account of unexplained investment in purchase of agriculture land without considering the fact that the payment made by post dated cheque as mentioned in the registry but subsequently paid in cash on the date of cheque and cheque was not cleared. The payment was duly recorded in the books of accounts. Comments of A.O -Agriculture land Khasra No 1726, Village Badli, Patwar Halka Badli, kothun, Teh. Chaksu, Jaipur: This land was purchased by the assessee on 30-07-2012 relevant to AY 2013-14 from Shri Ramsawroop. As per the sale deed (Paper book Page no 5) payment of Rs. 4,31,000/- was paid through cheque and cash. The detail of which as under: ....
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.... (ii) The Ld.CIT(A) has further erred on fact and in law in upholding the additions of Rs. 1,37,500/- on account of unexplained investment in purchase of plot of land at Chaksu without considering the facts that the payment is duly made by cheque and recorded in the regular books of accounts. Comments of A.O. The assessee made purchases of property at plot no 10 Surender Nagar, Chaksu from Smt. Bhagwati Saini in proprietory concern of assessee M/S A.R. Properties and colonizers through agreement dated 12-11-2012 at cost Rs 137500. The assessee claimed that payment has been made by account payee cheque and these cheque were en-cashed as under: 09-11-2012 PNI 55000 12-11-2012 INR 55000 17-12-2012 PNB 27500 Copy of account of seller and bank account of relevant period submitted by appellant (Paper book page no.13 & 13) Appellant submitted bank statement only for transaction period. As on 01.11.2012 opening balance is Rs. 1,79,004 82/- but assessee has not given earlier bank statement so as to verify the source of this payment However, it is noticed on perusal of order of Ld.CIT(A) that it is found from the bank statement that the appellant....
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....deposited cash into the bank account as the immediate source of making the investment. If the revenue really considered the income as unexplained that they could have made the addition as unexplained credit but once the credit is not considered as unexplained the investment so made from the entry passed in the books of account cannot be added u/s. 69 as unexplained investment. Before us also the ld. AO did not dispute the fact that the assessee has paid the money through banking network but disputed the fact that the assessee deposited cash into the bank account before giving the cheque for investment. The ld. AO did not offer the comment as to the source of credit already reflected in the books of account if at all addition is required to be made it should have been made for the credit and not the subsequent action of making the investment out of the credit reflected in the accounts. Thus, once the investment is duly recorded the same cannot be considered as an unexplained investment. Based on this observation ground no. 1, 1.1, 2 & 2.1 raised by the assessee are allowed. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 12/02/2025. ....