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TMI Blog2018 (10) TMI 1162X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,000. In the result, necessary onus in terms of creditworthiness which has been challenged by the Revenue is satisfied in the instant case. The decisions relied upon by the ld DR are distinguishable on facts - Decided in favour of assessee. Addition u/s 56(2)(vii)(b)(ii) - adopting the valuation of property taken by the registering authority - scope of amendment - Held tat:- The provision of section 56(2)(vii)(b)(ii) are amended, by the Finance Act, 2013 with effect from 1-4-2014, so as to provide that where any immovable property is received by an individual or a HUF for a consideration which is less than the stamp duty value of the property by an amount exceeding 50,000, the stamp duty value of such property as exceeds such consideration, shall be chargeable to tax in the hands of the individual or the HUF as income from other sources In the instant case, the assessee has entered into a registered sale deed on 1.11.2013 which effectively means he has lawfully received the immovable property in terms of title and possession though for an inadequate consideration on 01.11.2013 which falls during the financial year 2013-14 relevant to assessment year 2014-15. The provisions of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent in the submission about the defects pointed out by the Assessing officer in the assessment order. Therefore I am the view that the Assessing officer rightly rejected the books of account by applying the provisions u/s 145(3) of the IT Act. Hence I upheld the action of the Assessing Officer rejection of the books of accounts. The next issue is estimation of Net profit. The Assessing officer made the addition of ₹ 50,000/- without giving any reason. The A/R of the appellant submitted that the trading report of 3 year are as under:- Assessment Year Turnove Gross GP 2014-15 7314914 1356609 18.55% 2013-14 13123932 1735794 13.23% 2012-13 9331400 1585468 16.99% I perused the record I find that the G.P. in this year is better as compare to the earlier year but the turnover in this year is ₹ 73,14,914/- as compare to the last year turnover of ₹ 1,31,23,932/-. Hence these year are not comparable due to the increase in the turnover but there is substance in the submission that Gross profit is better. Therefore considering the facts and circumstance. I am the view that trading addition restricted to ₹ 25,000/-and balance amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that appellant has taken ₹ 2,50,000/-from Smt. Santosh Devi Jangir and the Assessing officer treated ₹ 2,50,000/- as unexplained cash credit u/s 68 of the I.T. Act. The A/R of the appellant submitted that the assessee has submitted copy of confirmation, ITR and computation of income of cash creditor Smt Santosh Devi Jangir who is also assessed to income tax with Income Tax Officer, ward - 7(3), Jaipur and regularly filing income tax return. Copy of bank passbook was also furnished before the Learned Assessing Officer. She has deposited ₹ 2,50,000/- in her bank account. The immediate source of cash deposit in bank account is out of dairy & agriculture income and cash saving. The bifurcation of cash received was as under:- Opening cash balance Rs .7,86,50/- Sale of milk of April-May-June ₹ 9,20,00/- Recovery from debtors ₹ 3,20,00/- Sale of Crop in April ₹ 4,65,00/- Sale of Crop in May ₹ 1,22,00/- Total 2,61,350/- For this ratio the appellant relied upon various case law, but the case laws laws mentioned in the submission are not applicable in this case because the appellant failed to produce the so called cash creditor before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 32000/- (iv) Sale of Crop in April ₹ 46500/- (v) Sale of Crop in May ₹ 12200/- Total Rs.261,350/- All the papers are also enclosed herewith. But the Learned Assessing Officer has not considered all the papers in right prespective and because the assessee has not produced cash creditor he added ₹ 2,50,000/- in the income of the assessee which is not justified. The Learned Assessing Officer has required to show the source of source which is not permissible under the Income Tax Act, 1961. The cash creditor is assessed to income tax and filed her income tax return regularly and confirm the credit. Therefore no addition can be made under such circumstances. Further, he relied on the decision of CIT vs. H.S. Builders 78 DTR 169 (Raj). 8. It was further submitted that the learned CIT(A) has confirmed the addition for the reason that the assessee has not produced Smt. Santosh Devi Jangir for her statement. The Learned CIT(A) did not consider that the assessee has submitted each and every document explaining the source of deposit in her bank account by her. What else was required when the creditor is assessed to income tax. Copy of her income tax return alo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the I.T. Act, 1961 are clearly applicable in the assessee case. As per the provisions of section 56(2)(vii)(b)(ii) of the I.T. Act, 1961 the assessee is liable to be charge income tax on the amount exceeds to the sale consideration as compared to the stamp duty value. The submission of the assessee has no force when the appellant himself accepted and agree to pay tax on different amount between DLC rate and purchase cost. Therefore I confirm the addition made by the Assessing officer of ₹ 2,85,313/-. This ground is not allowed." 12. In this regard, ld. AR has submitted that that there is some difference between DLC rate of agriculture land and sale consideration paid by assessee. As per clause (vii) of sub section (2) of section 56, if a buyer purchase a property below the circle rate is more than ₹ 50,000/- such difference would be assumed to be the income of the purchaser and would be chargeable to tax under the head income from other sources. This amendment will come into force on 1st April 2014 and this case pertains to Assessment Year 2014-15 which is prior to 01.04.2014. The Learned CIT(A) did not consider this plea of the assessee and the law position. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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