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2014 (7) TMI 1290 - AT - Income TaxAddition u/s 69 on the basis of oral statements of the sellers - documentary evidence assuming that the cash deposited in the bank account of the seller was actually received from the assessee over and above the price mentioned in the registered sale deed - Held that:- AO merely believes the oral statements of the sellers and more specifically unreliable witness has been heavily relied upon. The assessee through its partner has also filed affidavit contradicting the allegations made against the assessee and the statements of the sellers. Wherever cash has been given to the sellers, it has been specifically admitted in the affidavit as is evidenced from page 31 (Bahadur Singh ₹ 3 lacs on 27.7.2006, ₹ 3 lacs on the same date to Leela Bai, ₹ 1 lac on 24.8.2006 to Shri Moti Ram, ₹ 1 lac on 24.8.2006 to Shri Pratap Singh and ₹ 3 lacs on 27.8.2006 to Shri Vikram Singh). All the transactions made through cash and cheque are duly recorded in the books of accounts maintained by assessee firm in regular course of its business. This factual matrix, contained in the affidavit of the assessee, has not been controverted by the Revenue, therefore, there is no reason to affirm the addition, so made, by the AO. AO is merely trying to catch the straw in whirlwinds with the help of oral statements of the sellers, ignoring the contents of the registered sale deeds, which are duly signed by the assessee as well as the sellers, in the presence of the witnesses and the registering authorities. It is noteworthy, as argued by the learned Counsel for the assessee also, that the sale was made on 27.7.2006 whereas the cash was deposited by the sellers in their accounts three months thereafter. It is quite unlikely that cash is given after the registration of the property. Noteworthy that sellers of the land filed return in December, 2009 and signed the affidavit on 31.12.2009. The receipt of cash and cheque are duly mentioned in the sale deed, therefore, it is unbelievable that after the registration of the property is made, the cash is deposited three months thereafter in the accounts of the sellers. Therefore, how it can be presumed that the property was sold at a different rate other than shown in the registered documents. The source has to be explained by the sellers, in whose accounts, the money was found deposited and not by the assessee. Therefore, the addition clearly seems to be made on presumptive basis. The mere fact that somebody made statement, by itself, cannot be treated as having resulted in an irrebutable presumption against the assessee. The burden cannot be discharged by the Revenue by merely referring to the statement of the third party and such statement cannot be the sole foundation that the assessee has deliberately suppressed the income. Even otherwise, if the explanation of the assessee is not acceptable, the onus shifts to the Revenue to prove the same with corroborating material. - Decided in favour of assessee.
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