2026 (5) TMI 1763

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 3,22,620/-. The case was selected for scrutiny through CASS. Accordingly, notices u/s 143(2) and 142(1) of the Income Tax Act, 1961 (in short "Act") were issued and served on the assessee. In response, Ld. AR of the assessee attended and submitted relevant information as called for. During assessment proceedings letter issued to the Punjab Nation Bank, Firozabad calling for bank statement, details of cash deposits made by the assessee during the year under consideration and details of cash deposits made during demonetization period. In response, Branch Manager provided bank statement, from the bank statement above, the Assessing Officer observed that assessee has deposited amount of Rs. 35,00,000/- and the same was made during demonetizati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the transaction of purchase could not materialize 18,00,000+ 18,00,000 Cash withdrawn to invest in agricultural land ½ of Khasara No. 91, Rakba 1.716 Hec.) belonging to Shri Latoori Singh, Tehsil Tundla, Firozabad, however transaction could not materialize. Reason for cancellation of deal: Seller (Shri Latoori Singh) unilaterally demanded a higher price than agreed, making the transaction unacceptable. To avoid disputes and financial loss, the assessee cancelled the deal. The Id AO in remand report has accepted the "cash withdrawal made from Bank and deposit of Rs. 3617337.00 in Bank Account. However he has mentioned that deposit of Rs. 36,17,337.00 is lacking evidences. As regards deposit of Rs. 3617337.00 in Punjab Nation....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... was redeposited in bank. Since not convinced with the above submissions the addition was sustained by him. 5. Aggrieved with the above order, the assessee is in appeal before us, raising following grounds:- "1. BECAUSE, upon overall consideration of the facts and in the circumstances of the case the authorities below were highly unjustified in making and sustaining addition of Rs 35,00,000/- under section 69A r.w.s 115BBE of the Act. 2. BECAUSE, the Ld. CTT(A) grossly erred on facts and in law in sustaining addition of Rs. 35,00,000/- failing to appreciate that cash deposit during the demonetization period was fully explained and stood duly sourced from earlier cash withdrawals made from the same bank account, the sour....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ice and therefore, the additions made deserves to be quashed. 7. BECAUSE, assessee denies its liability against Interest charged under section 234A &234B is incorrectly charged. The 'appellant' reserves his right to add, delete, modify, alter or substitute any or all the grounds of appeal." 6. At the time hearing, Ld. AR of the assessee brought to my notice page 39 of the paper book which is statement of PNB and he brought to my notice the assessee has received RTGS from the Government of India on 06.01.2016 for remittance towards compulsory acquisition of land held by the assessee. On 07.01.2016 and 12.01.2016, the assessee has withdrawn the cash and kept the cash in hand for the purpose of purchasing another l....