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2022 (9) TMI 240 - AT - Income TaxCapital gain on sale of land and bungalow - FMV determination - power to refer the matter to the valuation officer - HELD THAT - Value claimed by the assessee is at variance with the fair market value. Indeed the AO can refer the matter to the valuation officer if registered valuer value the property as on 1st April 1981 which is at variance with the fair market value. However such amendment is prospective in nature and therefore the same cannot be applied to the earlier years. In this regard we find support and guidance from the judgment in the case of CIT Vs. Gauranginiben S. Shodhan Indl 2014 (2) TMI 78 - GUJARAT HIGH COURT . The relevant extract of the judgment has already been extracted in the preceding paragraphs. As the dispute before us relates to the year prior to the amended provisions of section 55A of the Act which is applicable prospectively. Therefore such amended provisions cannot be applied to the case on hand. Thus we are inclined to reverse the order of the CIT-A and accordingly we direct the AO to work out the capital gain on sale of land and bungalow after taking the value as on 1st April 1981 as declared by the assessee. Hence the ground of appeal of the assessee is allowed. Exemption u/s 54F - As we have allowed the main ground of the assessee with regard to value of the property as on 1st April 1981 which will result into long term capital loss in the hand of the assessee. Therefore the issue of allowance of exemption under section 54F of the Act become redundant. Hence the ground of appeal of the assessee is hereby dismissed being infructuous. Addition u/s 68 on account of loans or gifts - cash deposit in the bank of the creditors - HELD THAT - The provision of section 68 of the Act fastens the liability on the assessee to provide the identity of the lenders establish the genuineness of the transactions and creditworthiness of the parties. The assessee in order to prove the identity and credit worthiness of creditor and genuineness of transaction has furnished the details such as copy of ITR copy of ledger account confirmation bank statements etc. The authorities below also not doubted the identity of the creditor and genuineness of the transaction. The addition was made only for the reason that the AO was not satisfied with the credit worthiness of the creditors. The view of the AO was based on fact that there were cash deposit in the bank of the creditors. It is well settled position of law that the assessee is only required to prove to sources of credit in his/her/it books of accounts not the sources of source. In our considered view the credit worthiness of the creditors cannot be doubted merely on the basis that there were cash deposit in their bank account unless some adverse material brought on record - if AO has any reservation with regard to the credit worthiness the AO should have conducted independent enquiry from the parties or brought contrary materials on record - we are of the view that the assessee has discharged primary onus cast under section 68 and onus shifted on the AO to bring contrary material by making independent inquiries but the AO failed to do so. Hence we hereby set aside the order of the learned CIT(A) and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is hereby allowed. Addition of deposit of cash in the bank account - onus to prove - HELD THAT - The onus lies upon the assessee to justify the cash deposit in the bank account represents the agriculture income. But the assessee has failed to submit any documentary evidence before the lower authorities. At the time of hearing before us a question was also put up to the learned AR for the assessee why the agriculture income was not included in the total income of the assessee for the purpose of calculating the tax. The learned AR could not make any satisfactory reply. Thus in the absence of sufficient documentary evidence we do not find any merit in the argument advanced by the learned AR appearing on behalf of the assessee. Accordingly the ground raised by the assessee is hereby dismissed.
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