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TMI Blog2013 (8) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... position of the Bank Manager. The assessee had not only deposited the entire amount in the bank but also informed the registering authority of the deficiency of the stamp in the sale deed - from the facts and circumstances on the record that in the present case the Income Tax Officer did not act in bonafide manner. The assessee led substantial evidence to establish that the amount treated to be undisclosed income by the A.O. was the sale consideration of sale of his agricultural land, which he had deposited in the bank and had voluntarily filed return disclosing his income. Overwhelming evidence led by him was discarded without giving any reasons at all. The assessment was framed only on the ipse dixit of the A.O., which gives us reason to believe that he had exceeded his authority with some ill will or with ulterior motive - Decided against Revenue. - Income Tax Appeal No. - 162 of 2013 - - - Dated:- 26-7-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Appellant : Dhananjay Awasthi, Sc ORDER 1. We have heard Shri Dhananjay Awasthi, learned counsel for the income tax department. The affidavit of service of the assessee has been filed but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. They stated that they had purchased the land only for Rs.22 lacs. The sale deed was executed on the sale value of Rs.22 lacs, whereas the assessee Shri Intjar Ali claimed that he had sold his land for Rs.1,20,00,000/-. Surplus amount of Rs.97,80,000/- over sale deed value was suspected to be income from undisclosed sources and case was selected for scrutiny on which notice under Section 143 (2) of the Act was issued on 18.9.2009. 4. On the queries served upon the assessee he filed copies of the khasra and khatauni (record of possession and title) in respect of agricultural land holding, the debit and credit entries in his bank account and justification in respect of agricultural income along with other documentary evidence. 5. The assessee produced the witness to the sale deed, who proved that the assessee had received Rs.1,08,32,752/- and which he deposited in his bank account. The Bank Manager of the Syndicate Bank, Village Dehra, Tehsil Hapur, which was the only bank in the village, and who had stayed late in the evening on the request of the assessee, deposed that the assessee had deposited the entire amount in his bank and which he had stated to be the sale c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. In appeal written arguments were filed giving almost entire circumstances and the evidence by which the assessee had explained that the amount had been received by sale consideration and could not be treated as income from undisclosed sources. The CIT (A) also called for remand report and thereafter dismissed the appeal. 7. The assessee filed second appeal in which the appellate authority noted the submissions as follows:- "In support of the grounds the ld. AR has reiterated the submissions made before the authorities below. He submitted that the sum of Rs.1,20,00,000/- is neither the income of the assesee from undisclosed source nor an unexplained money but represents sale consideration of the agricultural land sold by him which in turn, is exempt from income tax as well as capital gain tax. He submitted that assesseee is having no other source of income, hence, the only inference which can be drawn is that the money amounting to Rs.90,00,000/- deposited in the Syndicate Bank on 12.11.2007 is a part of the sale receipt of the land sold by the assessee on 12.11.2007. The ld. AR submitted that the AO himself admits that the evidence on record prima facie supports, the versi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant, Extract of passbook showing deposit of Rs.14,50,000/- on 22.02.2007 (In dispute), Bank receipt showing late hour deposit, Pay-in-slip of Bank showing deposit for Rs.90.00 lakhs on 12/13.11.2007, Bank declaration by assessee dated 13.11.2007, complaint dated 14.09.2010- reminder to earlier complaint regarding evasion of stamp duty addressed to Assistant Commissioner of stamps, Bank statement showing of Rs.1,08,32,752/- in the account of Sh. Intizar Ali at the time of attachment on 06.12.2007, Undertaking, Note of A.O. Hapur showing non-compliance of notice u/s 131 by Raisuddin, Receipt for return filed voluntarily on 27.10.2008, Copy of return, Letter of ITO Hapur u/s 142 dated 21.12.2010, Letter dated 21.12.2010, Reply assessee for justification for non conversion of sale proceeds into unexplained one, Letter dated 24.12.2007 of ADM (LA) showing payment of compensation at 179.34 per sq. mt, Report of Tehsil showing agricultural income, Report of Tehsildar showing distance from Nagar Palika T.A., Report of Tehsildar 30.11.2010/10.12.2010 showing market value of the land at Rs.1.20 crore, AC stamps recommendation for registration of case u/s 47A dated 28.09.2010 and tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lent practice in the land transaction that real sale consideration is not shown in the sale deed. There was also sufficient reason for the purchasers to conceal actual sale consideration in the sale deed to evade tax and stamp duty since it is paid by the purchasers only. Ignoring the above documents, circumstantial evidence and the prevalent practice in the land transaction, we are of the view that the authorities below were not justified in doubting the explanation of the assessee for the source of deposit in question mainly on the basis that the registered sale deed signed by the assessee himself shows a sale value consideration of only Rs.22,20,000/- and that there is no full proof evidence on record that the purchasers had given total consideration of Rs.1,20,00,000/-. There was also nothing on record to suggest either that assessee was having any other source of income which has been given more weightage by the authority below than the explanation of the assessee that the source of the deposit in question was sale receipt of the land sold by him as the selling of land and deposit made out of the sale receipt made on the same day, when sale deed was registered has not been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- and accordingly addition of Rs.77,80,000/- was made in his hand on substantial basis as his income during the year for which a copy of the assessment order was filed on record. 12. The income tax appeal is dismissed. 13. Before parting with the case we may observe here that from the facts and circumstances on the record that in the present case the Income Tax Officer did not act in bonafide manner. The assessee led substantial evidence to establish that the amount treated to be undisclosed income by the A.O. was the sale consideration of sale of his agricultural land, which he had deposited in the bank and had voluntarily filed return disclosing his income. Overwhelming evidence led by him was discarded without giving any reasons at all. The assessment was framed only on the ipse dixit of the A.O., which gives us reason to believe that he had exceeded his authority with some ill will or with ulterior motive. 14. We, therefore, find it appropriate to direct the Registrar General of the Court to forward a copy of this judgment to the Chairman of the Central Board of Direct Taxes to cause an enquiry into the conduct and motives of Shri Yaduvansh Yadav, Income Tax Officer, War ..... X X X X Extracts X X X X X X X X Extracts X X X X
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