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2019 (7) TMI 928 - ITAT HYDERABADAddition u/s 40A(3) - cash payment for the purchase of land - exception as per Rule 6DD - On the day of transaction, purchaser demanded cash - registration of land took place in the afternoon of 07-03-2009 that the day happens to be Saturday followed by public holiday Sunday - HELD THAT:- We noticed that assessee has completed the registration on 07/03/2009 and the document indicates that it was prepared on 02/03/2009. The registration formalities were completed only on 07/03/2009 and suitably modifying the document in hand writing. The argument of AO is that the document and transaction was completed on 02/03/2009 but only registration was made on 07/03/2009. The CIT(A) has clarified the above observation of AO as improper and gave a finding that the substantial money would not be given without registration. No prudent purchaser will pay such huge funds without proper registration. No purchaser will make payment without registration on 02/03/2009 and make registration on 07/03/2009. The facts and sequence of events are in favour of assessee that the actual transaction took place only on 07/03/2009 and not on 02/03/2009. Therefore, we are inclined to accept the findings of ld. CIT(A) and the order of CIT(A) is upheld dismissing the grounds raised by the revenue. - Decided in favour of assessee.
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