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TMI Blog2020 (12) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... ) TMI 1836 - ITAT CHANDIGARH] namely the value of the land at the relevant point of time, the issue is restored back to the file of the CIT(A) with direction to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard. Appeal of the assessee is allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... received from proceeds of sale of rural agriculture land was deposited in his bank account No.65040559274 maintained with State Bank of India, Handiaya Branch. The A.O made additions of ₹ 2671000/- vide her order dated 28.12.2018 due to the reason that 'the assessee failed to produce the original copy of agreement to sell and the purchaser with whom he had made agreement to sell, and had failed to produce the source of cash deposits made by him. The assessee had made cash deposits of ₹ 4146000/- on 18.01.2011 whereas it has been found that the assessee had made registration of the land for ₹ 1475000/- on 17.01.2011 therefore the amount of cash deposits of ₹ 1475000/- is treated as explained out of the sale of said land and the balance of ₹ 2671000/- is treated as unexplained cash deposits made by the assessee out of undisclosed sources of income. Hence an addition of ₹ 2671000/- is made to the income of the assessee on account of unexplained cash deposits made by the assessee in his bank account maintained with State Bank of India, Handiaya branch bearing account No.65040559274. The assessee filed appeal before CIT (Appeals) Patiala against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antage has been derived by the assessee by filing the appeal late and no advantage vested by the Revenue has been upset by filing the appeal late. The delay, it is noted, has been explained. Accordingly in the light of the prayer of the parties before the Bench, the delay is condoned. Said order was pronounced at the time of hearing itself in the presence of the parties via Webex. The parties were accordingly directed to argue the appeal on merits. 6. Reverting to the merits of the appeal, it is seen that the present appeal had come up for hearing on 15.09.2020 on which date, the ld. AR submitted that the issue is fully covered in favour of the assessee by virtue of the order dated 15.01.2010 in ITA 246/CHD/2018 in the case of Shri Mangat Singh Vs ITO. Copy filed by e- mail. Relying on the said order, it was his submission that the assessee seeks similar direction in the present case also in its prayer for remand as in the facts of the present case, the value of the specific piece of agricultural land at the relevant point of time had not been taken into consideration. In the facts of the present case also, it was submitted that the assessee similarly purely has agricultural incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well known fact. However, in the instant case there is no evidence that any extra money has been paid to the appellant the terms any agreement to sell or in terms of a deed/ document reduced to writing signed by the buyer and duly registered ". (emphasis supplied) 9.1 On reading of para 4. 3 highlighted by the ld. Sr. DR, the ld. Sr.DR was required to address how the general presumptions can be said to dismantle the assessee's case as the facts/ trends as noticed are hardly likely to impact an agriculturist receiving sale proceeds from sale of agricultural land as he is least interested in reducing the stamp duty costs etc. for the purchaser. As seller, he personally does not have any reason or motive to reduce the stamp duty costs to be incurred by the purchaser. For the sake of completeness, the relevant extract highlighted by the ld. Sr.DR is extracted hereunder : 4.3 Now coming to the question as to why the parties to such transactions choose to get them registered at a lower rate than actually agreed to? The answer, is to either avoid payment of higher stamp duty, or to utilize unaccounted funds. The seller as well as the purchasers connive with each other to falsely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A)'s order). The assessee had sold 14 Kanal odd to identified person whose name and details are available in the Sale Deed i.e. Land Revenue Records. There is nothing on record to show that the assessee could be said to have any authority, influence or power over the buyers so as to enforce their presence before the tax authorities. Admittedly, the only interested party with a motive to reduce costs by reducing stamp duty costs would be the purchaser who is identified. Thus, if his presence was so relevant, there was nothing to stop the Tax Authorities from ensuring his presence for which purposes, it becomes necessary to have on record the actual value of the specific land at the relevant point of time. 13. It is seen that in the facts of the present case, the Tax Authorities have taken an easy route and have placed an impossible burden upon the assessee. As has been noted earlier, it is the duty of the tax authorities to assist tax compliance which means giving correct advice and following best practices. To attempt collecting tax on the basis of ignorance of the citizenry is not expected from a tax administration in a developed economy. In the facts of the present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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