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2017 (8) TMI 269 - AT - Income TaxUnexplained source of cash deposit - addition u/s 68 - Held that:- The assessee has claimed that the advances received have been repaid back in the months of October and November 2010 as the transaction did not go through. On a consideration of the facts, it is of the view that relevant facts have not been thrashed out by the tax authorities. Evidently there was a specific piece of land belonging to the assessee and there was an Agreement to Sell entered into by the assessee with Sh.Suresh Chand Yadav. If his signature is found therein and the entering into of the transaction is supported by an affidavit of the Sh.Suresh Chand Yadav, then there was no reason for the Revenue not to address the availability of funds in the hands of the Sh.Suresh Chand Yadav from his father’s agricultural activity. How the assessee can be held responsible for the financial affairs and the explanation offered by Sh.Suresh Chand Yadav is not brought out in the orders. As per the facts on record, the ownership of a specific land/plot in the hands of the assessee is not doubted. The other party signatory of the Agreement to Sell Sh.Suresh Chand Yadav is identified who explains the source but does not appear on the only one opportunity provided to him. The parties are not related the amounts are stated to be repaid back on specific dates prior to the filing of the return itself. The return as per record was filed on 20.03.2012 and the amounts are claimed to be repaid by cheques on specific dates in October and November in 2010. Accordingly, find that subject to verification that the amounts have been repaid on specific dates back to Sh. Suresh Chand Yadav the addition per se cannot be sustained. Appeal of the assessee is allowed for statistical purposes.
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