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TMI Blog2022 (1) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the respective sale deeds, we are afraid that the same is based on a half-hearted approach by him to the issue in hand. Having observed that the sale deeds did make a mention about money given to the assessee in advance, the CIT(A), in our considered view could not have summarily rejected the assessee s claim of having received part/full sale consideration prior to the date of the execution of the respective sale deeds. Apart from that, we find that it is not even the case of the department that the sale consideration received by the assessee on sale of the respective properties had been channelized by him for making some other investment and/or incurring of any other expenditure. Our aforesaid conviction that the lower authorities before rejecting the assessee s claim of having received the sale consideration prior to the execution of the respective sale deeds ought to have carried out necessary verifications from the purchasers is all the more strengthened by the fact that the CIT(A) had himself admitted that the sale deeds did make a mention about the money being given in advance - we are of the considered view, that there is substance in the claim of the assessee of h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee carried the matter before the CIT(A). During the course of the appellate proceedings the assessee furnished certain additional documentary evidence U/rule 46A of the Income-tax Rules 1962, viz (i). copy of the sale deeds of immovable properties that were sold by him during the year under consideration, which, as per him had sourced the cash deposits in his bank account; (ii) cash flow statement; and (iii). copy of the bank statements. As the aforesaid documents were in the nature of additional evidence, therefore, the CIT(A) called for a remand report from the A.O. 5. During the course of the remand proceedings, it was the claim of the assessee that the cash deposits of ₹ 55.01 lac in his aforesaid bank accounts were primarily sourced out of sale proceeds of two properties that were owned by him, viz (i) sale of plot at Shanti Nagar, Gurgaon (sale consideration of ₹ 24 lac received in cash); and (ii) sale of one house at Chandan Nagar, Gurgaon (sale consideration of ₹ 28 lac received in cash). Apart from that, it was the claim of the assessee that he had with him cash in hand of ₹ 2,35,500/- as on 01.04.2012. Backed by his aforesaid claim, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of the aforesaid properties could not be accepted. 5. After considering the remand report filed by the A.O a/w the rejoinder of the assessee, the CIT(A), was of the view, that though the sale deeds did make a mention about the money given in advance, however, as neither was it discernible therefrom as to when and in what manner such advance was given to the assessee, nor the assessee had furnished any evidence to substantiate his claim of having received the aforesaid amount of advance, therefore, the A.O had rightly rejected the same. It was further observed by the CIT(A) that though some advances are generally taken at the time of executing the agreement to sell , but the claim of the assessee that the entire amount of sale consideration was received by him prior to the execution of the respective sale deeds was not found to be convincing. Backed by his aforesaid observations the CIT(A) finding no infirmity in the view taken by the A.O upheld his order and dismissed the appeal. 6. The assessee being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. Ld. Authorized representative ( A.R , for short) took us through the facts of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dan Nagar, Gurgaon; which are stated to have been received by him in advance i.e prior to the execution of the respective sale deeds, as under : Sr. No. Particulars 1. Deposit of an amount of ₹ 10,02,000/- in bank account with Bank of Maharashtra, Branch : Gurgaon, which is stated to have been made out of the cash of ₹ 14,00,000/- that was claimed to have been received as advance on 31.05.2012 on sale of his residential house at Chandan Nagar, Gurgaon for ₹ 28,00,000/-, vide sale deed dated 06.07.2012. 2. Deposit of an amount of ₹ 20,15,000/- in bank account on 09.03.2013 in bank account with Bank of Maharashtra, Branch :Gurgaon, out of the cash of ₹ 24 lac that was claimed to have been received by the assessee as advance on sale of plot at Shanti Nagar, Gurgaon for ₹ 24,00,000/-, vide sale deed dated 29.03.2013 . As is discernible from the orders of the lower authorities, we find that they had related the receipt of sale consideration of both the properties in question by the assessee, to the date on which the respectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or both the parties, we are unable to persuade ourselves to subscribe to their view that the assessee had not received any part of the sale proceeds qua the sale of the properties in question prior to the date of execution of the respective sale deeds. As observed by us hereinabove, the CIT(A) had clearly admitted that the sale deeds did mention about the money having been given in advance. But after so observing, the CIT(A), was of the view, that as the sale deeds were silent as to when and in what manner the sale consideration was given to the assessee as an advance, therefore, his unsubstantiated claim of having received part/full sale consideration qua sale of the properties in question did not merit acceptance. We have given a thoughtful consideration and are unable to persuade ourselves to accept the reasoning given for rejection of the assessee s claim by the CIT(A). In our considered view, in case there was any doubt in the mind of the lower authorities as regards the genuineness of the assessee s claim of having received the sale consideration prior to the date of execution of the respective sale deeds, then, it was obligatory on their part to have made necessary verificat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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