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TMI Blog2024 (7) TMI 1431X X X X Extracts X X X X X X X X Extracts X X X X ..... of law is not to prove the source of source of cash credit. Accordingly, we hold that the alleged credit stands explained and as such, the addition is deleted. Assessee appeal allowed. - Dr. M. L. Meena, Accountant Member And Sh. Udayan Dasgupta, Judicial Member For the Appellant : Sh. Sudhir Sehgal, AR For the Respondent : Sh. Ravinder Mittal, Sr. DR ORDER PER DR. M. L. MEENA, AM: The captioned appeal has been filed by the assessee against the order passed by National Faceless Appeal Centre (NFAC/CIT(A)), Delhi dated 22.09.2023 in respect of Assessment Year: 2016-17. 2. The assessee has raised the following grounds of appeal: 1. On the facts and facts and circumstances of the case as well as in law the Ld. CIT(A) has erred in confirming the addition of Rs. 1,58,00,000/- made by the A.O. on account of unexplained credits in the books of account whereas as per explanation furnished and material placed on record, the assessee appellant has duly explained the credits in detail as part of sale transaction 2. That the appellant craves leave to add or amend any grounds of appeal before the appeal is finally heard or disposed of. 3. Briefly facts of the case are that the assessee appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt accordingly the appellant approached the purchaser and after prolonged negotiation fresh cheque have been received for the month of February 2016. Out of these cheques, amounting to Rs. 1,58,000/- has been encashed and the balance amount of Rs. 40,00,000/- remained outstanding. In support of this the appellant has given the copy of bank account of Shri Kesar Singh. Further, appellant has claimed that Shri Kesar Singh is man of means having big entries of credit and debit and having sufficient amount in his bank. 5.5 From the reply of the appellant, it is seen that there is nothing substantial to prove the creditworthiness of Shri Kesar Singh and at the same time appellant has not given concrete evidence to prove the genuineness of such transaction. From the perusal of bank account and sale deed, it is seen that there are inconsistencies and deficiency in the explanation of the appellant. Further, from the perusal of purchaser account i.e. Shri Kesar Singh bank account no. 651965629746 with SBI it is seen that before transferring the amount to the appellant's account cash was deposited of the same amount on the same day. Further, the AO has given hisclear cut findings that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- on account of the amount received from the buyer namely Sh. Kesar Singh, against the sale of agricultural land. 3. The addition has been made by treating the said amount received by the assessee as unexplained credits, alleging that the assessee has not been able to justify the creditworthiness of Kesar Singh and genuineness of the transactions. 4. The assessee filed an appeal before the Worthy CIT(A), which has been dismissed by the CIT(A) NFAC, and the relevant findings of thesame are given in serial No. 5.3 to 5.6 of the appellate order. 5. Now we are in appeal against the same, and our submission is as under: 1. The assessee sold one agricultural land on 25.08.2014 vide the registered sale deed enclosed in the paper book at pages 6-9B, for a total consideration of Rs. 1,98,00,000/-. 2. That the buyer Sh. Kesar Singh, had given three cheques amounting to Rs. 70,00,000/-, Rs. 68,00,000/-, and Rs. 60,00,000/- on 30.06.2014 as per the page-7 of the paper book which is the first page of the registry. 3. Due to non-availability of funds in the Bank Account of the buyer, the said cheques could not be encashed, and after prolonged negotiations, fresh cheques have been received du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lared or disclosed the consideration received by him and there is understatement or concealment of consideration in respect of the transfer. Sub-section (2) has no application in case of an honest and bonafide transaction where the consideration received by the assessee has been correctly declared or disclosed by him, and there is no concealment or suppression of the consideration. We find that, in the present case, it was not the contention of the revenue that the property was sold by the assessee to his daughter-in- law and five of his children for a consideration which was more than the sum of Rs. 16,500 shown to be the consideration for the property in the instrument of transfer and there was understatement or concealment of the consideration in respect of the transfer. It was common ground between the parties and that was a finding of fact reached by the income-tax authorities that the transfer of the property by the assessee was a perfectly honest and bona fide transaction where the full value of the consideration received by the assessee was correctly disclosed at the figure of Rs. 16,500. Therefore, on the construction placed by us, subsection (2) had no application to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction, and even then if the Ld. AO or department has any apprehension in respect of the same, then they were free to open the case of the buyer, and reliance in this regard is placed upon the following judgments: - a. Chandigarh Bench of the Tribunal in the case of JAWAHAR LAL vs. INCOME TAX OFFICER in 35 ITR (Trib) 0075. b. Sewa Ram vs ITO, ITAT Chandigarh in ITA No.327/CHD/2011- Thus it is clear that when loans have been taken from the family members and which have been routed through bank by most of such family members, they cannot be added as cash credits unless it is found as a fact that such bank accounts are benami of the assessee. In case before us, it cannot be alleged that bank account of various family members are benami of the assessee because loans have been taken from such family members for last many years and which have been shown as opening balance and have been accepted by the Department. c. Chandigarh Bench of the ITAT in the case of Sh. Ashok Kumar in ITA no. 825/chd/2007 dated 18.11.2009 and the relevant discussion is in para 19 of the order, in which, it has been held as under:- In the totality of facts and circumstances of the case, the genuineness ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh the said sale consideration is duly supported by the registered sale deed and the validity of the said registered deed cannot be negated until or unless its content are disproved. 9. From the record, as it is evident that the sale deed was genuine and the department has not been able to prove any other consideration received by the assessee in respect of the said registry, then the said amount received by the assessee from the buyer cannot be alleged to be other than the sale consideration amount for the sale of the property. Further, it is also not the case of any unexplained credits as the amount has been received in respect of the transaction of the sale of land which cannot be taken under the garb of unexplained credits. Therefore, the assessee is not liable to prove the creditworthiness of the buyer who has purchased the land from the assessee. The amount received by the assessee is a consideration against the land sold by the assessee to Sh. Kesar Singh and thus, it was not the case of the assessee to know the sources from which such payment have been received as the assessee had given an asset in exchange for such consideration and thus, it is not the case of any deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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