9911796707
TMI Blog2019 (2) TMI 1794X X X X Extracts X X X X X X X X Extracts X X X X ..... her sources. Assessee electronically filed his original return of income for A.Y. 2011-12 on 30.09.2011 declaring total income of Rs. 5,85,936/-. A search and seizure action u/s 132 of the Act was conducted in Ashoka Group of cases on 20.04.2010. The case was selected for scrutiny and thereafter the assessment was framed u/s 143(3) r.w.s. 153(B) of the Act vide order dt.21.03.2013 and the total income was determined at Rs. 26,85,936/- and agricultural income of Rs. 65,640/-. Aggrieved by the order of AO, assessee carried the matter before Ld.CIT(A), who vide order dt.03.12.2015 (in appeal No.PN/CIT(A)-12/497/2014-15) granted partial relief to the assessee. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before us and has rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im to Shri Sachin C. Gandhi and Mrs. Meera S. Gandhi for the purchase of land. Assessee submitted that he made payment of Rs. 40 lakhs by cheques of ICICI Bank for purchasing the land. The source of which was stated to be out of amounts taken from his father and from his own savings. It was further stated by the assessee that he made cash payment of Rs. 20 lakhs on 05.04.2010 which was received back when the final payment was made by cheque. AO noted that purchase deed for the land which was executed on 17.04.2010 showed the payment of Rs. 20 lakh each by way of cheques but the alleged cash payment of Rs. 20 lakh made by assessee was not reflected in the purchase deed. The submission of the assessee that Rs. 20 lakhs that was paid by him in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oucher was cancelled. There was no evidence found during the search to support the case that cash was returned back by the Gandhis. Statements of the appellant and Mr. Gandhi were recorded after the gap of -about one month hence not as credible as the statement of . Shri Satish Parakh recorded u/s 132(4) on the date of search. Moreover, Mr. Sachin Gandhi and appellant both were party to the unaccounted transaction and were not expected to state the truth which goes against' both of them. Appellant clairned that Gandhis were insisting on payment by of DDs which were already drawn on 5.4.2010 in favour Gandhis hence cancellation of the DDs and thereafter withdrawal of cash from bank is beyond comprehension. Therefore, it is held that cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance amount of Rs. 17.50 lacs was deposited in the Bank account. In the absence of source for cash deposit of Rs. 17.50 lakhs in his ICICI Bank account and retaining cash of Rs. 2.50 lakhs for payment of stamp duty, registration fee and other charges, the addition of the aforesaid amounts were made as "unexplained cash credit" and "unproved expenditure" respectively. He submitted that initially the transaction for purchase of agricultural land was finalized between his father and Mr. Sachin Gandhi & Mrs. Meera Gandhi and according to the terms of the transaction, Mr. & Mrs. Gandhi were to be paid to Rs. 10 lakhs each by demand draft as earnest money deposit on 05.04.2010 and accordingly to honour the commitment, two demand drafts of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statement of assessee that was recorded u/s 132(4) of the Act which was reproduced in page 7 of order of Ld.CIT(A), wherein assessee had stated the source of payment of Rs. 20 lakhs to be withdrawn from his ICICI bank account and it was also submitted that the amount of cash of Rs. 20 lacs was paid on 05.04.2010 but it was received back and finally the payments were made by cheques. He also pointed to the statement wherein assessee had submitted that since assessee did not have time to make the demand draft for the payment, he made the payment in cash after withdrawing it from his ICICI Bank account. Later on, Mr. and Mrs. Gandhi on receipt of the full agreed consideration of Rs. 40 lacs thru cheque, the assessee was refunded the cash. In s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein the source of payment of Rs. 20 lakhs was stated to be withdrawal of the amount from his ICICI Bank account. We find that the contention of the assessee of having taken a demand draft from the Bank, getting it cancelled and withdrawing of cash from the bank is reflected in his bank account with ICICI Bank. We further find that in the statement of Shri Sachin C. Gandhi, had also accepted the payment of cash to be a stop gap arrangement and refundable on receipt of the agreed amount by way of cheque. Further, the submissions of the assessee has not been found to be false on the basis of any corroborative evidences. Considering the totality of the facts, more so when the assessee in the statement recorded at the time of search had explai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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