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TMI Blog2017 (4) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... shed aside. Place reliance on the order of the Cochin Bench of the Tribunal in the case of ITO vs. Dr. Koshy George (2009 (6) TMI 121 - ITAT COCHIN), wherein it was held by the Tribunal that any surplus money arising to an assessee on sale of agricultural land would partake the character of agricultural income itself. - Decided against revenue. - I.T.A. No. 30/Coch/2017 - - - Dated:- 26-4-2017 - Shri George George K., Judicial Member Revenue by Shri A. Dhanaraj, Sr. DR Assessee by Shri K.P. Paulson, CA ORDER Per George George K., Judicial Member This appeal, at the instance of the Revenue, is directed against the order of the CIT(A)-II, Kochi dated 21/11/20216. The relevant assessment year is 2013- 14 2. The grounds raised read as follows: 1. The Order of the Commissioner of Income-tax(Appeals-II), Kochi, in I.T.A. No. 104/NCW-1(1)/CIT(A)-II/15-16 dated 21/11/2016, is opposed to law, facts and circumstances of the case. 2. Whether the Commissioner of Income Tax(Appeals) was right in allowing the assessee s appeal holding the facts and circumstances of the case as identical to the case of ITO vs. Dr. Koshy George, reported in (2009) 317 ITR (AT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, it was noticed that the sale proceeds of land as per the sale deed is only ₹ 30,59,500/-. An agricultural income of ₹ 10,40,500/- was also declared in the return of income filed by the assessee and his wife for the previous year relevant to the assessment year 2013-14 but no documentary evidence has been filed to show the source for the balance deposit of ₹ 39,00,000/-. Therefore, a proposal was issued to the assessee on 08/12/2015 to treat the balance deposit ₹ 39 lakhs as unexplained deposit of the assessee. 3. The assessee has filed a reply on 17/12/2015 in response to the proposal issued on 08/12/2015 but the assessee could not furnish any evidence in support of source of balance cash credits of ₹ 39,00,000/-. It was contended by the assessee that this amount is also the sale proceeds of the Agricultural Property which was not shown in the sale deed. 4. The contention raised by the assessee has been duly considered. It is settled position of law that only the amount shown in the sale deed can be taken as the legally approved value of the property. The balance amount if any can be considered only as the black money or the unac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideration in cash which is inclusive of consideration as per Sale Deed and the additional amount, popularly known as On Money , which he deposited in his bank account. He further stressed that before shifting to India, he worked abroad, i.e., Middle East, for a number of decades, and his income in India is income from house property and a meager amount of interest income on his deposits in Bank. Therefore, since the amount of cash deposited in the bank, over and above the amount mentioned in sale deed, also represents consideration received on sale of agricultural land, the same is exempt from incidence of tax. In his support, he placed reliance on the decision of the Hon ble jurisdictional ITAT, Cochin Bench in the case of ITO vs. Koshy George, reported in (2009) 317 ITR (AT) 116 (Cochin), wherein, the Honourable Bench held that any surplus money arising to an assessee on sale of agricultural land would always partake the character of agricultural income itself. The consideration stated in the Registered Sale Deed was agricultrual income. Likewise, the on money also should be treated as agricultural income. Since the facts of the instant case is squarely covered by the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was circle rate fixed by the Kerala Government. It was submitted that the entire sale consideration of ₹ 70,79,500/- was deposited in Federal Bank on 16/04/2012 and 17/07/2012. On perusal of the bank accounts with Federal Bank, I notice that there is not much of transaction in the bank account of the assessee either before or after the sale transaction of agricultural land. The assessee is not having any other source of income so as to generate undisclosed income of ₹ 39 lakhs. The assessee was an NRI and on his retirement, he was doing agricultural activities. Most importantly, I notice that there is no concealment, because in the income tax return filed before the IT authorities, the assessee and his wife had disclosed the entire value of sale transaction amounting to ₹ 70,79,000/- (including the on-money). A copy of the income tax return filed by the assessee and his wife alongwith computation statement for the assessment year 2013-14 are enclosed at pages 7 to 19 of the paper book filed by the assessee. In the peculiar facts and circumstances of the case, I have no hesitation to hold that the receipt of on-money was in no way different from the receipt amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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