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2023 (3) TMI 351 - AT - Income TaxReopening of assessment u/s 147 - Unexplained cash deposits in his bank account - reliance on AIR information - As per assessee it is advance received against sale of another piece of agriculture land - HELD THAT:- We find that there was deposit of cash of Rs. 79,00,000/- on 07/07/2009 the very same day on which the sale deed was executed and Rs. 2,00,000/- was deposited on the next day, therefore a clear nexus has been established between source of such cash deposit and sale transaction so executed by the assessee. In absence of any contrary evidence brought on record in terms of statement of witnesses and comparative sale data of similar transaction undertaken at same/nearby location at a value different from what has been claimed by the assessee, the explanation so furnished by the assessee cannot be disputed. We are conscious of the fact that though the sale deed shows lower sale consideration which is also the Stamp Duty Valuation however, once the assessee has brought on record the relevant facts and documentation as well as nexus between transaction of sale and deposit in bank account has been established then in absence of any contrary evidence brought on record, only inference which can be drawn from these facts and circumstances of the case is that the source of deposit is the sale consideration of the agriculture land. No finding has been recorded by the AO as to why the explanation of the assessee regarding other sources of deposits being the advance received against sale of another piece of agriculture land was not found acceptable - In absence of any contrary evidence brought on record by the Revenue, the explanation of the assessee duly corroborated by the affidavit from the buyer and the bank statements reflecting the receipts and refund of Rs. 7,00,000/- is found acceptable and the source of such deposits thus stand explained and no adverse view is warranted in this regard. Regarding explanation of the assessee that there were cash withdrawals earlier made from the bank accounts and which were re-deposited during the year, we have gone through the assessee's bank statements and the cash flow statement and find that there were withdrawals and deposits during the year in the two bank accounts maintained by the assessee and the deposits so made duly stand explained by the earlier withdrawals during the year and no adverse view is warranted in this regard. We find that the assessee has duly explained the nature and source of cash deposits during the year and the initial onus on the assessee duly stand discharged. - Decided in favour of assessee.
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