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TMI Blog2023 (3) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... be drawn from these facts and circumstances of the case is that the nature and source of deposit is nothing but represent the full value of consideration from sale of agriculture land so sold by the assessee and thus stand explained. The factum of agriculture land not being a capital asset has not been disputed by the Revenue in the instant case and thus, the full value of the consideration is not liable for tax and addition so sustained by the ld CIT(A) which represent a part of consideration is hereby directed to be deleted and the matter is decided in favour of the assessee. - ITA NO. 294/Chd/ 2019 - - - Dated:- 7-3-2023 - SHRI. AAKASH DEEP JAIN, VP And SHRI. VIKRAM SINGH YADAV, AM For the Assessee : Shri Tej Mohan Singh , Advocate For the Revenue : Smt. Amanpreet Kaur , Sr. DR ORDER PER VIKRAM SINGH YADAV , A. M : This is an appeal filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeal s)-2, Chandigarh [ in shor t the Ld. CIT(A) ] passed u/s 250(6) of the Income Tax Act, 1961 (in short the Act ) dated 27/12/2018 for assessment year 2010-11, wherein the Assessee has taken the following grounds of appeal: 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hands of the assessee. There was however, no addition made in respect of cash deposits of Rs. 31,00,050/- which formed the basis of initiation of impugned proceedings u/s 147 of the Act. As against the returned income of Rs 28,165, the assessed income was accordingly determined at Rs. 39,89,165/-, besides the agriculture income of Rs 1,40,500/- was accepted as returned by the assessee. 3. Against the said findings and the order of the AO, the assessee filed an appeal before the Ld. CIT(A). During the course of appellate proceedings, the assessee submitted that he has executed a sale deed in respect of sale of his agricultural land situated at Village- Muaja Khanpur Rajputan, Naraingarh with Shri Sahdev Kankarwal and has received payment of Rs. 39,61,000/- all through cheques in respect of said land sold by him. In support, the assessee has submitted copy of the bank account statement, maintained with PNB, of the buyer Shri Sahdev Kankarwal which reflected the payment of Rs. 27,00,000/- through three cheques of Rs. 9,00,000/- each. Further regarding the other two credit entries amounting to Rs. 12,61,000/-, the assessee submitted copy of the another bank account statement maint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was submitted that thought the assessee could not submit the confirmation from the buyer, at the same time, buyer s details were available on record and AO failed to issue summons to him. At the same time, the assessee was able to obtain copies of bank account statements of the buyer which were duly produced before the AO as well as ld CIT(A). It was submitted that on perusal of these two bank account statements of buyer, it is amply clear and goes on to prove that the consideration for sale of agricultural land has flown from the two bank accounts of the buyer directly into the bank account of the assessee. It was accordingly submitted that the necessary linkage has been duly established by the assessee by way of registered sale deed as well as copy of the bank statements of the buyer and the action taken by the AO is not warranted and the addition so sustained by the ld. CIT(A) be directed to be deleted. 6. Per contra, the Ld. DR relied on the order of the AO as well as the Ld. CIT(A) and it was submitted that the Ld. CIT(A) has already allowed relief to the assessee to the extent of consideration as stated in the registered sale deed and the assessee does not deserve any fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 147 of the Act. Before the ld. CIT(A) the assessee produced sale deed as well as bank account and also detailed submissions in respect of the source of cash deposit made in the bank account. The ld. C(IT(A) called for remand report wherein the AO has pointed out that the sale deed dated 08.04.2009 shows the sale consideration of Rs. 6,45,000/-. The ld. CIT(A) has consequently allowed the claim of the assessee only to the extent of Rs. 6,45,000/- as stated in the sale deed. The Bench has raised a query about the discrepancy in the name mentioned in the sale deed and the name of the assessee appearing in other records. The ld. AR has pointed out that the assessee Shri Pappu Ram is also known as @ Prabhu Ram. Thus, in the sale deed of the name of the assessee appearing as Shri Prabhu Ram. After verification of the record we are satisfied that the name appearing in the sale deed alias name of the assessee. The AO has also not disputed the fact that the assessee is one of the joint owners of the land which was sold vide sale deed 08.04.2009. We further note that the cash of Rs. 27,50,000/- was deposited in the bank account of the assessee with Oriental Bank of Commerce, Kishangarh on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontents of the agreement to the extent of part payment of consideration has been established by the sale deed dated 11/8/2005. Therefore, even if the said agreement is not enforceable in law due to the non-bearing of the signature of the assessee and further due to non-registration, the contents of the said agreement which has been proved and corroborated by the sale deed go to establish the existence of the agreement between the parties. Further the details of the cash deposited in the bank account of the sellers and their relatives has been reproduced by the Assessing Officer in the assessment proceedings at page No. 4 and 5 of the assessment order as under: The dates of deposit of cash as well as cheques in the bank accounts of the sellers, their sons, grandsons and wife are clearly matching to the dates of agreement to sell and sale deed i.e. 11/5/2005 and 11/8/2005. All the deposits of cash in the bank accounts of these persons were made on the very next day of execution of agreement and sale deed respectively. In absence of any other source of income of the sellers, the only inference which can be drawn from the details of the bank accounts and particularly the deposits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly tallies and only inference which can be drawn is that the deposits are towards receipts of sale consideration of agriculture land. We are conscious of the fact that though the sale deed shows lower sale consideration which is also the stamp duty valuation however, once the assessee has brought on record the relevant facts and documentation as well as nexus between transaction of sale and deposit in bank account has been established then in absence of any contrary evidence brought on record, only inference which can be drawn from these facts and circumstances of the case is that the nature and source of deposit of Rs. 39,61,000/- is nothing but represent the full value of consideration from sale of agriculture land so sold by the assessee and thus stand explained. 9. The factum of agriculture land not being a capital asset has not been disputed by the Revenue in the instant case and thus, the full value of the consideration of Rs 39,61,000/- is not liable for tax and addition of Rs. 22,41,000/- so sustained by the ld CIT(A) which represent a part of consideration is hereby directed to be deleted and the matter is decided in favour of the assessee. 10. In the result, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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