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TMI Blog2019 (3) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... tually taken place. If the exchange was part of the transaction of sale of the property at Menonpara, the assessee will have to explain why the further sale and conveyance did not take place. When the exchange is said to be an inextricable part of the agreement, the assessee cannot resile from that and take a different contention. In any event, we have already found that how the transaction concluded is not material since the existence of unaccounted cash in the hands of the assessee is established. The extracted portion of the specific answer to the question put by the Officer and recorded under Section 132(4) that the assessee agreed to having paid ₹ 50 lakhs in cash. It is also an admitted fact that there were two others, Babu a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent for purchase of a property at Menonpara for a total consideration of ₹ 150 lakhs. Sri.Babu in his deposition said that there was a building at Akathethara, which was also a part of the transaction and exchange of that property was fixed at a value of ₹ 72 lakhs. The balance ₹ 78 lakhs is said to have been received by cash by Sri.Babu from the assessee. The assessee also endorsed the agreement, but however had a different version with respect to the transaction. His version, which we find from the statement recorded under Section 132(4), is as follows:- 8. Explain your dealings with Mr.Babu? Ans.: I, along with Mr.C.H.Hussain, have made an agreement to purchase 18 acres of land in Menonpara, from Mr.Babu, at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rialise at all and the property still is in the hands of the original owner. 6. Whether the agreement materialised or not, is not relevant for consideration of the addition made by the AO as confirmed by the first appellate authority. There is no appeal from the order of the first appellate authority and the Tribunal had confirmed the addition of ₹ 78 lakhs. It is an admitted fact that such an agreement was entered into. Even admitting the fact that the total consideration excluded the value of the property sought to be exchanged, what remained was ₹ 78 lakhs. Whether the said amounts were disclosed in the cash flow statement of the assessee is the crucial point which has to be considered. Even if the agreement did not materi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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