2023 (8) TMI 964 - HC - Income Tax

Reopening of assessment - source of cash deposit - determination of total amount of consideration out of the sale of agriculture land - HELD THAT - Tribunal has taken into consideration the recital contained in the registered sale deed which clearly shows that the sale consideration was Rs. 6.75 lacs. The aspect relating to valuation of the property for the purposes of stamp duty was also taken into consideration but the Assessing Authority Appellate Authority and ITAT all recorded concurrent finding placing reliance mainly on the sale deed and recital contained therein. Moreover it is not the case of the appellant-assessee that the entire sale consideration was transferred in the account of the assessee through cheque issued by the purchasers. It is a case of cash deposit. Therefore the burden was on the assessee to prove that the consideration for sale was Rs. 20, 80, 000/- and not what was recited in the sale deed. We find that all the authorities have appreciated the oral and documentary evidence and recorded their findings of fact on the issue as to what actually was the sale consideration in the matter of transaction of sale of agricultural land. Even though the submission of learned counsel for the appellant would be that there was no proper appreciation of evidence it is essentially a case of appreciation of evidence and not of substantial question of law. As the appeal does not involve any substantial question of law we are not inclined to re-appreciate and interfere with the concurrent finding of facts.

Summary

Issues Involved:
1. Condonation of delay in filing the appeal.
2. Dispute regarding the assessment of income tax on cash deposits made by the assessee.

Summary:

On the issue of condonation of delay, the High Court, after considering the cause shown in the application, decided to condone the delay and allowed Application No. 869/2022.

Regarding the income tax appeal, it arose from an order passed by the Income Tax Appellate Tribunal concerning cash deposits made by the assessee. The department noticed cash deposits of Rs. 19,00,500/- and issued a notice under Section 148 of the Income Tax Act, leading to the reopening of assessment. An amount of Rs. 12,22,000/- was added to the income, which was upheld in subsequent appeals.

The appellant argued that the Tribunal's finding was perverse and opposed to law. The appellant claimed a sale consideration of Rs. 20,80,000/- based on registered sale deed and oral evidence. However, the Tribunal relied on the sale deed showing a consideration of Rs. 6.75 lacs. The authorities considered the evidence and concluded that the burden was on the assessee to prove the higher consideration, especially as the deposits were made in cash.

The High Court noted that all authorities had considered the evidence and reached their findings on the sale consideration. As the case did not involve any substantial question of law, the Court declined to interfere with the concurrent findings and dismissed the appeal.