TaxTMI 
TaxTMI 
2025 (2) TMI 1549
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....count. 2. The CIT(A) NFAC has erred on facts and law in confirming the addition, vide order u/s. 250 of the Act Dt. 29.08.2024, made by the AO amounting to Rs. 64,02,000/- u/s. 69A r.w.s. 115BBE of the Act, vide order u/s. 147 r.w.s 144 of the Act Dt. 09.03.2023 on account of alleged unexplained cash deposits in the saving bank account without appreciating the detailed written submissions alongwith evidence filed by the assessee before the CIT(A) NFAC. 3. That the Order u/s. 250 of the Act Dt. 29.08.2024 passed by CIT(A) NFAC is not a speaking order as the grounds of appeal raised before the CIT(A) in Form-35 has been adjudicated in a summary manner without appreciating the submissions and evidence filed during the course of appellate proceedings. 4. That the Order u/s. 250 of the Act Dt. 29.08.2024 passed by CIT(A) NFAC is not a speaking order as the Additional grounds of appeal raised before CIT(A) NFAC in appellate proceedings have not been adjudicated. 5. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed of." 3. Apart from the above grounds, the assessee made an application....
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.... assessee before the tribunal has filed two sets of paper book consisting of 187 pages, which contains copies of registered sale deeds dated 19/05/2014 (including its English translation), copies of death certificate of Sh. Raj Singh (uncle of the assessee), copies of bank accounts of the assessee and other family members, copy of jamabandi of agricultural lands owned by parents of the assessee, copies of written submissions filed by the assessee before the first appellate authority, and copies of evidences, filed before the first appellate authority, and a judgment set consisting of 58 pages, containing decisions of various courts and tribunal, on which the assessee relied upon in support of his arguments. 7. At the very outset, the Ld AR of the assessee, has withdrawn grounds number - 4 and has also withdrawn the additional ground, both being legal grounds, objecting to the issue of reassessment notice issued by jurisdictional AO u/s. 148 dated 26/03/2022, as not pressed and consequently, all relevant submissions on the legal issue contained in the written submissions and part of the paper book filed, are also treated as withdrawn. 8. The Ld AR, proceeded to argue the case ....
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....e sale deeds, and the entire sale proceeds received in cash from the buyer, has been deposited (50%) partly, in the bank account of the assessee in A/c No . xxxxxx01914, with Bank of India, Doongraja Branch Rs. 61,50,000/-, and the remaining (50%) of equal amount has been deposited in the bank account of Mr Baljeet Singh (who happens to be the uncle of the assessee and naturally uncle of the three sellers also and brother in law of the widow, of the deceased Raj Singh ), in his Bank of India A/c No. xxxxxxx02790, same branch. 12. He further submitted that, since the three brothers (three sons of the deceased) were not in harmony with each other, it was decided amongst the brothers in consultation with their mother, Smt Pritam Kaur, (widow), that the sale proceeds received in cash on sale of the agricultural lands, will be kept partly in custody of the assessee ( who is the elder cousin of the three sellers) and partly in custody of their uncle Sh Baljeet Singh, as custodians, and the same will be refunded by the custodians, at a subsequent date, after the three brothers and their widow mother arrives at a harmonious settlement amongst themselves. 13. The Ld AR has filed the r....
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.... Jamabandi of agricultural lands owned by the father and mother of the assessee in the village of Kanvarpura, Rajasthan ( which is placed in paper book page 116 to 117 ) and the assessee being the only son of his parents, has deposited the said agricultural earnings in his bank account. 18. On a specific query from the bench regarding non submission of return in response to notice u/s. 148 of the Act 61 dated 26/03/2022, the Ld AR submitted that the assessee is only engaged in agricultural activity and has never submitted any income tax returns in the past, because his (and his family) only income is agricultural income and he belongs to a family of agriculturist, and he previously used to reside at a village Kanvarpura, Kota, Rajasthan and now has shifted to village Ranjitgarh, Dt. Muktsar sahib, Punjab, and notices issued from the office of the AO either through post or affixation, at the old address at Kanvarpura, Kota, was never received by him and he was not at all aware of any such ongoing assessment proceedings, and the assessee himself being semiliterate, never had any knowledge of income tax portal and never had any knowledge of compliance with income tax proceedings, b....
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....pellate authority has observed as follows: "All the documents and the sale deeds submitted pertained to FY 2015-16 and therefore not helping the appellant in its explanation convincing" 23. The Ld AR explained that along with the paper book submitted by the assessee in course of appellate proceedings, before the first appellate authority, the assessee has also submitted copies of purchase deed of agricultural lands purchased by the Smt Pritam Kaur, Sri Bittu Singh, Sri Sukhchain Singh and Sri Kulwinder Singh on 17/3/2016 and 18/03/2016, respectively, which relates to FY 2015-16 ( Asst year 2016-17 ), copies of purchase deed (placed at page - 69 to 113 of the paper book ), just to prove the subsequent utilisation of the sale proceeds received by them on sales of agricultural lands effected on 19/05/2014 ( FY 2014-15 ) . These deeds of purchase of agricultural lands for the FY 2015-16, are subsequent events, where utilisation of the funds (sale proceeds) has been explained, and which has no relation for examining the source of bank deposits in FY 2014-15, because that is just the outgoing (or utilisation part) which is a subsequent event relating to subsequent year, which....
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....ssessee. 27. On merits of the case, we have heard the rival submissions and considered the materials and the contents of the paper book placed on record. There are two issues in this case, firstly, the source of the cash amounting to Rs. 64,02,000/- that has been deposited in the bank account of the assessee on 19.05.2014 and secondly, the actual consideration of sale proceeds received amounting to Rs. 1,23,00,000/-, in cash against the registered set forth deed value of Rs. 25,20,000/-. For easy understanding the summary of the case is reproduced as follows: Date of Deposit Amount Source as Explained: Assessee holding the same in custody only : Transferred by assessee to the sellers Ultimate Utilisation by Sellers 19th May 2014 61,50,000.00 Sale proceeds of agricultural lands sold by Smt Pritam Kaur and her sons was held by assessee as custodian Reflected in Bank Statement Sale deed Registered on the same date 19th May 2014 Transferred to Pritam Kaur and Sons through bank transfer, on 19 Feb 2016 Reflected in bank statement Agricultural Lands purchased by Pritam Kaur and Sons on 17/03/2016 and on 18/03/2016 18th April 2014 50,000.00 Agr....
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.... gained anything from this transaction of depositing cash into his bank account and thereafter transferring the said amount back to the actual owners (sellers) within a period of 21 months, thereafter, where the said amount was utilized by the sellers (Pritam Kaur and her sons ) for purchasing agricultural lands on 17th March 2016, a transaction to which this assessee (custodian) is not directly related. 32. At this juncture, it is clarified that the said purchase deeds of lands registered on 17th March, 2016, was also a part of the paper book filed before the Ld CIT (A), and the observation and comments of the Ld CIT(A) in the last paragraph of his order, relates to the registered purchase deeds evidencing purchase of lands which pertains to FY 2015-16 (Asst year 2016-17), and has no effect on the issue for the year under appeal. 33. The Ld CIT (A) has examined the entire paper book contents, in course of the appellate proceedings and no adverse comments or finding has been passed in respect of the documentary evidences, contained in the PB, relating to the deposit of cash in bank account of the assessee (custodian) arising out of sale of agricultural lands, of his extended ....