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2019 (2) TMI 39 - AT - Income TaxAddition u/s 69A - sale of residential property - receipt in cash against sale of property and refund by way of cheque when transaction failed - Held that:- There is a sale deed duly registered which states clearly that the sale consideration has been received by the assessee on or before the date of execution of the sale deed i.e, 8.7.2010, there is deposit of cash in bank account of the assessee on 8.7.2010, and there is also evidence of issuance of cheque dated 10.8.2010 by the buyer of the property in favour of the assessee and which has been credited in the assessee’s bank account on 13.8.2010. In such a scenario, only probable scenario which exists is that the assessee has initially received cash of ₹ 20 lacs from the buyer of the property which was deposited in the assessee’s bank account on 8.7.2010 which has resulted in closure of the sale transaction as evidenced by the sale deed executed on 8.7.2010. Subsequently, for reasons best known to the two parties, the buyer of the property issued a cheque of equivalent amount on 10.8.2010 which was deposited in assessee’s bank account on 13.8.2010 and simultaneously, cash of equivalent amount was withdrawn by the assessee and returned to the buyer of the property. In light of peculiar facts and circumstances of the case, we agree with the assessee’s explanation that the source of cash deposit of ₹ 20.5 lacs on 8.7.2010 is the balance sale consideration received from the buyer of the property and which has been duly offered to tax by the assessee in his return of income. In the result, ground of appeal is allowed.
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