9911796707
TMI Blog2019 (7) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... ly seen from the bank statements of the assessee which corroborate the fact that the said amount of ₹ 60,00,000/- was never received by the assessee in the A.Y. 2011-12. Therefore, the amount received by the assessee during the A.Y. 2013-14 is nothing but the consideration received as part of the said transaction of sale of land and the stand taken by the A.O. and upheld by the CIT(A) is erroneous on the facts and in the circumstances of the case. CIT(A) has also erred in observing that the assessee did not advance any reason as to why the cheque of ₹ 60,00,000/-received from the Purchaser was not deposited in the bank. In fact the assessee has offered the explanation that the assessee along with other co-owner, Mr. Pratapsinh Shoorji Vallabhdas, were restrained by the Purchaser from depositing the cheques and were warned of the consequences such as cheques being dishonoured due to insufficiency of the balance in the bank account of purchaser M/s. Kanchi Concept Builders and Developers Pvt. Ltd. As a result, the assessee and Mr. Pratapsinh Shoorji Vallabhdas did not deposit the cheques in the bank account. At this backdrop it was factually incorrect on the part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee along with other two co-owners, namely, Mr. Pratapsinh Shoorji Vallabhdas and Mr. Dilipsinh Shoorji Vallabhdas were jointly and equally holding the plot of land bearing CTS No. 27 (Part), Survey No. 96 admeasuring 457 Sqr. Mtrs. of village Hariyali, Taluka Kurla. The said plot of land was sold by three co-owners to M/s. Kanchi Koncept Builders Developers Pvt. Ltd. 'the Purchaser') for a total consideration of ₹ 1,80,00,000/-. The said land was conveyed through the Deed of Conveyance dated 3rd November, 2010 entered into between the said three co-owners and the Purchaser. Accordingly, the assessee was entitled to receive ₹ 60,00,000/- (l/3rd of ₹ 1,80,00,000/-) as consideration for parting with her share in the said land. The purchaser had issued the cheque for ₹ 60,00,000/- in the name of the assessee dated 7th December, 2010 drawn on Bank of India, Ghatkopar East branch having cheque number '000132'. However, the purchaser requested all the three co-owners that the cheques issued should not be deposited till they were further intimated in this regard. Later, only Mr. Dilipsinh Shoorji Vallabh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.1. It was also explained that capital gain so earned on the sale of plot was already offered by assessee in A.Y.2011-12 and scrutiny assessment was framed wherein AO has accepted the declared capital gain and taxed thereon. 3.2. However, the AO did not agreed with the assessee s contention and added ₹ 60,00,000/- in her income by observing that assessee has not explained the source of receipt from the buyer who has purchased the plot in the A.Y.2011-12 from the assessee. 4. By the impugned order, CIT(A) confirmed the action of the AO against which assessee is in further appeal before us. 5. It was argued by ld. AR that in the A.Y. 2011-12 the assessee had sold the land to the Purchaser and had received the consideration of ₹ 60,00,000/- by a cheque. However the same was never deposited in the bank account by the assessee under the specific instructions from the Purchaser. Therefore the said amount of ₹ 60.00,0007- was, in fact, not received by the assessee in the A.Y. 2011-12. The said amount remained to be recovered from the Purchaser since the A.Y. 2011-12 till the time the same was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchaser which could not be served. Thereafter the assessee provided new address of the Purchaser to the A.O. and the new notice was issued by the A.O. and the same remained unserved. However, it is submitted that after providing the new address to the A.O., only single attempt was made to serve the said notice on the Purchaser and no further efforts were carried out to serve the said notice once again whereby the A.O. could have confirmed the facts from the Purchaser. It is, therefore, submitted that the solitary attempt made by the A.O. to gather the facts in case were grossly insufficient and the conclusions drawn therefore are erroneous and as such, the issuance of the notice u/s. 133(6) of the act is not an empty formality and the same should not have been completed by the A.O. in a perfunctory manner. 6. On the other hand, ld. DR contended that assessee could not substantiate the fact of receipt of cash in the year under consideration even though AO had issued notice u/s.133(6) to the purchaser, but the same could not be served on the purchaser. Accordingly, the AO was justified in adding the said deposit of cash in assessee s bank account as unexplained. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brought on record by the AO to decline the explanation of the assessee with regard to receipt of cash during the year in respect of the cheque which could not be deposited in the bank account in the A.Y.2011-12. Therefore, the action of the AO to bring the amount of ₹ 60,00,000/- to tax which was already offered by the assessee in the A.Y.2011-12 is bad in law. The observation of CIT(A) to the effect that the amount received by the assessee in the A.Y. 2013-14 and the sale of the said land in the A.Y. 2011-12 are separate transactions is incorrect since the amount recoverable from the Purchaser is not only shown in the audited accounts of the assessee but also can be clearly seen from the bank statements of the assessee which corroborate the fact that the said amount of ₹ 60,00,000/- was never received by the assessee in the A.Y. 2011-12. Therefore, the amount received by the assessee during the A.Y. 2013-14 is nothing but the consideration received as part of the said transaction of sale of land and the stand taken by the A.O. and upheld by the CIT(A) is erroneous on the facts and in the circumstances of the case. 8. Further, the CIT(A) has also erred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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