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TMI Blog2024 (6) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... eived by the assessee, we find the revenue has not disputed the genuiness of purchase and sale of the flat by the assessee. Whereas the assessee has entered into agreement for purchase of under construction flat and since the deal could not go through due to non compliance of financial transactions and subsequently the agreement of sale was registered in the name of Mr. Kishore M Patel which is not disputed and the assessee has received the sale consideration in lieu of agreement of sale as per the confirmation dealt in the above paragraphs and found the submissions made by the AR are realistic. We set-aside the order of the CIT(A) and direct the AO to delete the penalty and allow the grounds of appeal in favour of the assessee. - SHRI OM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der and considering all these circumstances penalty levied Rs. 24,50,000/ - u/s 271D be deleted. 2. The brief facts of the case are that, the assessee is an individual derives income from salary, house property and business. The assessee has filed the return of income for the A.Y 2007-08 on 23.04.2009 disclosing a total income of Rs. 2,71,136/-, subsequently the assessee has filed the revised computation of income with the total income of Rs. 3,41,590/-.Whereas the Assessing Officer (AO) has received information from the Investigation Wing, Mumbai that the assessee has made cash deposits of Rs. 26,93,000/- with Bank of Baroda, Ghatkopar (East) branch during period 01.04.2007 to 31.03.2009. On enquiry, the A.O found that the assessee has mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsequently, the AO has initiated penalty proceedings and issued show cause notice u/sec 271D of the Act, as the assessee has obtained cash deposits and loans from Mr. Kishore M Patel of Rs. 18,50,000/- and others Rs. 6 lakhs, all aggregating to Rs. 24,50,000/-. Whereas the assessee has filed the detailed explanations dated 20.05.2016 mentioning that the assessee has received the amount from Mr. Kishore M Patel towards the sale consideration of the flat and further Rs. 6 lakhs was obtained from the various persons, where the loan from each person is below Rs. 20,000/- and therefore the provisions of Sec. 271D and U/sec 269SS of the Act are not applicable. Whereas the AO was not satisfied with the explanations and observed that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 20,000/- and there is no contravention of provisions U/sec 269SS of the Act. In the assessment proceedings, the A.O has made an addition of unexplained cash deposits/loans u/sec 68 of the Act of Rs. 4,75,000/- and made assessment u/sec 143(3) r.w.s 147 of the Act. The Ld.AR substantiated the submissions with the synopsis, judicial decisions and factual paper book and prayed for allowing the assessee appeal. Per Contra, the Ld. DR relied on the order of the CIT(A). 6. We heard the rival submissions and perused the material on record. The Ld. AR submitted that the CIT(A) has erred in not considering the explanations of the assessee before the lower authorities. The assessee has received the sale of consideration in respect of flat and where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le consideration in cash on different dates i.e on 04.12.2007 Rs. 6 lakhs, 26.12.2007 Rs. 5 lakhs, 29.12.2007 Rs. 1,50,000/-, 31.12.2007 Rs. 5,00,000/- and on 16.01.2008 Rs. 1 lakh and all aggregating to Rs. 18,50,000/-. Further the assessee also received the sale consideration by cheques on 08.01.2008 Rs. 3 lakhs and Rs 1 lakh on 16.01.2008 aggregating to Rs. 4 lakhs. The Ld. AR contentions are that the assessee has received the sale consideration in lieu of agreement of sale and therefore the transaction is totally a sale transaction and not loan. The Ld. AR submitted that the assessee has purchased the flat through agreement of sale which is under construction on 29.05.2007 for a total consideration of Rs. 30,42,000/- which is not disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order U/sec. 143(3) r.w.s.147 of the Act has made addition of cash loans below Rs. 20,000/-each aggregating to Rs. 6,00,000/- as unexplained cash deposits u/sec 68 of the Act of Rs. 4,75,000/- and also initiated penalty U/sec. 271(1)(c) of the Act, and again invoked the penalty provisions of section 271D of the Act is not acceptable. On the second issue of sale consideration received by the assessee, we find the revenue has not disputed the genuiness of purchase and sale of the flat by the assessee. Whereas the assessee has entered into agreement for purchase of under construction flat and since the deal could not go through due to non compliance of financial transactions and subsequently the agreement of sale was registered in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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