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TMI Blog2019 (7) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... n cash payment has ever taken place because it does not contain any information as to what was the cheque amount or cash amount, what was the date of the transaction, what did the figure noted on the piece of paper represent, and whether in any manner the paper in question has any relevance to the determination of the income in the hands of the assessee. No evidence has been brought on record to corroborate the allegation that the assessee had paid cash. As find from the returns of the assessee, filed for the assessment year 2011-12 and 2012-13 and also the 143(3) order for the assessment year 2012-13 that the Revenue itself has accepted the capital gains declared by the assessee taking into consideration the amount declared in the registered documents. No action has been taken by the Revenue to dispute the cost of acquisition pertaining to the properties in question. By accepting the capital gains declared by the assessee the Revenue has made a self goal pertaining to the addition made in the earlier years (though this is not the only reason to delete the addition). - Decided in favour of assessee. - ITA No. 229/Chd/2013 - - - Dated:- 7-5-2019 - Sh. Sanjay Garg, Judic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee during the said period was studying in the final year of B.Tech in Indo Global College. The assessee after the college hours got involved in the market survey of real estate as he had no earlier experience in the line. The assessee during the year under reference purchased two plots in Feb., 2006 Plot No 55 for a price of ₹ 6,18,000/- and Plot No 9 for a price of ₹ 7,20,000/- and subsequently construction was done on the said plots. During search operations a hand written document at Page No 20 of Annexure D-8 was seized. The said document is written in the handwriting of the assesses and reflects estimated market price of the plots purchased by the assessee. During that period there was a spurt in the market immediately after the purchase of the said plots. The assessee is not an expert accountant. He was trying to find out the market price of the plot plus construction expenses for the purposes of disposing off the constructed plots. The said plots were purchased by the assessee in Feb., 2006 Plot No 55 for a price of ₹ 6,18,000/- and Plot No 9 for a price of ₹ 7,20,000/-. The figures of ₹ 33,56,950/- e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question. The plot no. 9 is of 240 Sq.yds and plot no. 55 is of 55 Sq.yds. The figures mentioned above were in absolute, for example 534907, 3891857, 820836, 3501086. It was also argued that while answering the question no. 10 and 12 during the statement recorded on 14/08/2008 and question no. 10 during the statement recorded on 16/10/2010 it was clarified that the diary is in the hand writing of the assessee contained the general market information and on some days the rates of certain items spent on the construction of the house. It was argued that the purchasers have also filed affidavits declaring the purchase price. 9. It was further argued that the cost of ₹ 686800/- of plot no. 55 and ₹ 792600/- being the cost of plot no. 9 have been duly reflected in the balance sheet of the concern of the assessee as on 31/03/2006. It was also argued that the subsequent years the Revenue has accepted the registered rates only while computing the capital gains arised on the sale of the sale of these two plots. It was further relied on the following case laws in support of his arguments: i) (2008) 169 Taxman 90 (P H) CIT Vs. Harpal Singh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount mentioned in the diary Purchase Cost as per Registered documents 1 Plot No. 9 3356950 + 534907 = 3891557 720000/- 2 Plot No. 55 2680250+820836=3501086 618000/- Hence it cannot be said at this juncture that the other figures necessarily constitute cash payment in the absence of any payment corroborating the figures mentioned in the diary. The purchase value varies from the figures noted in the diary. The Revenue while recording the statement under section 132(4) even at the time of search and at the time of assessment could not bring out anything on record to prove are corroborate the diary noting. It has been the consistent stand of the assessee that these are estimates in the statements recorded. There was no evidence of cash payment or generation of cash or physical cash pertaining to the assessee found at the time of search. The Revenue did not enquire on the side of sellers of the plots to prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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