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2020 (4) TMI 219 - AT - Income TaxLong Term Capital Gain - sale of agricultural land by the co-owners - sale consideration received in cash by the assessee and other co-owners as per the information received from the Investigation Wing Jaipur - True payment of sale consideration to the sellers of the land - HELD THAT:- As clearly stated that except the sale considerations as recorded in the sale deeds and received through cheques, no other payment was received. Therefore, when the transactions recorded in the seized material has no connection and particularly has no contemporaneous relation with the transaction of sale through sale deeds dated 24.08.2006 then the assumption of the AO that these transactions are pertaining to the sale consideration received by the assessee is without any basis. Once Shri Madan Mohan Gupta during his statement recorded by the AO has clearly denied having paid any cash to the assessees, then there is no basis for coming to the conclusion that the assessees have received the alleged cash against the sale of agricultural land in question. Except the statement of Shri Madan Mohan Gupta recorded during the course of search and post search enquiry, the alleged seized documents do not reveal any such transaction except the entries of the amounts under the head “RPS” and that too not related to the period or the transaction in question. The statement of Shri Madan Mohan Gupta as recorded during the search and seizure action cannot be the basis of the addition in the hands of the assessees when in his examination during the course of assessment proceedings he has denied the alleged payment of cash to the assessee. AO has not brought on record any material or facts to show that the land in question carries a value of more than ₹ 12 crores as alleged and thereby the assessees have suppressed the sale consideration as reported in the Sale Deeds. On the other hand, the assessees have brought on record a sale instance whereby M/s. Shri Kalyan Buildmart Pvt. Ltd. through its Director Shri Madan Mohan Gupta purchased adjoining land bearing Khasra nos. 403 & 404/148 measuring 0.58 hectare vide Sale Deed dated 04.04.2007 for a consideration of ₹ 72,00,000/-. This subsequent sale instance and sale consideration as well as the stamp duty valuation of the land in question clearly corroborates the prevailing fair market value as claimed by the assessees and declared in the Sale Deeds. Subsequent sale of the adjoining land and purchased by the same party M/s. Shri Kalyan Buildmart Pvt. Ltd. as well as the stamp duty valuation of the land corroborates sale consideration shown in the sale deeds executed by the assessees. Therefore addition made by the AO is devoid of any substance or merit but solely on the presumption and surmises which is not sustainable when Shri Madan Mohan Gupta himself during the assessment proceedings has denied. Accordingly, the addition is deleted. - Decided in favour of assessee.
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