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Smt. Sarda Devi Jalan Versus The ITO, Ward- 4 (2) , Jaipur

2016 (4) TMI 579 - ITAT JAIPUR

Addition on account of unexplained cash deposits in bank account - Held that:- Only a photocopy of agreement cannot be held as sufficient corroborative evidence for the explanation. During the course of hearing ld. Counsel on queries contended that the possession of plot was given at the time of agreement after receiving the cash from Mangilal Jalan of Gauhati. Though sale transaction was completed capital gains were not offered in the return as assessee assumed that sale was not liable for capi .....

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ding circumstances, human conduct and preponderance of probabilities which are sine qua non of the income tax proceedings as held by Hon’ble Supreme Court in the case of Sumati Dayal [1995 (3) TMI 3 - SUPREME Court ] . The explanation canvassed by assessee defies logic and fails to invoke any confidence. In view of the foregoing have no hesitation to hold that assessee failed to discharge burden cast by I T Act in this behalf. - Decided against assessee - ITA No. 408/JP/2013 - Dated:- 22-2-2016 .....

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ount of alleged unexplained cash deposits in bank account. 2. That on the facts and in the circumstances of the case and in law, the ld. CIT(A) grossly erred in sustaining an addition of ₹ 54,680.75 on account of Short term capital gains from shares 2.1 During the course of hearing, the ld. AR of the assessee has not pressed Ground No. 2 which is dismissed being not pressed. 3.1 Apropos Ground No. 1, brief facts of the case are that the assessee is an individual and earns income from inter .....

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ee was asked to furnish the source of cash deposit. Assessee filed a cash flow statement reflecting a cash receipt of ₹ 7,45,500/- on 18-12-2007 as advance against sale of land on the basis of copy of an agreement. The AO on examination of the copy of the sale agreement observed that stamp paper for agreement was purchased on 07-01-2006 whereas the agreement was executed after about 22 months on 18-12-2007. Assessee didn t produce the original agreement or authenticated copy thereof, it wa .....

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greement executed after about 22 months on this expired stamp paper between the parties cannot be a reliable piece of evidence. ii. The assessee failed to submit the original documents i.e. agreement dated 17-12-2007 or an authenticated copy, merely a photocopy cannot be held as genuine without corroboration. iii. The identity, creditworthiness of the purchaser was not proved and such a huge transaction being in cash and in the absence of authentic documents, it cannot be held that assessee has .....

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a cash flow statement which showed receipt of ₹ 7,45,500/- on 17-12-2007 on account of advance sale of land. When asked to prove, the assessee furnished a copy of Agreement to sell agricultural land (situated at village Tatiwas, Sikar Road, Jaipur ). The AO has stated that date of agreement was not mentioned on the agreement. That the agreement was not valid because stamp paper was purchased on 7-01-2006 whereas the agreement was executed on 18- 12-2007. That the agreement should have bee .....

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eme Court in the case of Thiruvendgada Pillai vs. Navacethamal & Anr [AIR (2008) 1541] SC was cited in support. It has also been stated that the identity of the purchaser Shri Mangilal Jalan Son of Shri Rameshwar Lal Jalani, resident of Plot No. 608, Mhemanto Market, A.T. Road, Gauhati, Assam is there on the agreement and both the purchaser and seller have confirmed the advance. 6. Copy of the impugned agreement is enclosed as Annexure -1 of this order. The observation of the AO that date of .....

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irdly last paragraph of this agreement mentions about the registry of the document which was to be done shortly as per this agreement but proper registered document has not been submitted though more than five years have passed since this Agreement to Sell was signed by the appellant with the purchaser. In view of the aforementioned facts, the genuineness of the Xerox copy of the agreement to sell furnished is not proved by the appellant. The addition of ₹ 7,45,500/- is upheld. 3.3 Aggriev .....

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stamp paper was purchased before six months on 07.01.2006. Attention of the Hon ble Bench is invited towards the judgment of Hon ble Supreme Court in the case of Thiruvengada Pillai Vs. Navaneethammal & Anr. Reported at AIR (2008) 1541 SC (paper book page no. 3 to 10), wherein the Hon ble Supreme Court held that under the Stamp Act, 1899, there is no expiry date for use of stamp paper and section 54 does not require purchaser of stamp paper to use it within six months. The limit of six mont .....

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atement on 18.12.2007. It is humbly submitted that this contention is not valid to invite an adverse inference against the appellant s claim because the receipt is shown just a day afterwards and not before the execution of agreement. It is possible due to various reasons viz. receipt of cash and execution of agreement in late hours or oversight. 3. Thirdly, it was held that the original agreement was not produced by the appellant. It is humbly submitted that it is a well known fact that the ori .....

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Sumer Mal Jalan and his cousin brother Shri Mangi Lal Jalan, his affidavit confirming the transaction could not be submitted before the ld. CIT(A). The appellant has submitted an application under Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963, dated 05.02.2016, with a humble request to admit in the interest of justice (as it relates to the root of the matter under consideration), affidavit of Shri Mangi Lal Jalan obtained later on, confirming the cash advance and agreement to sell. .....

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, the identity of purchaser Shri Mangi Lal Jalan son of Late Rameshwar Lal Jalan resident of Plot No. 608, Shrimonto Market, A.T. Road, Gawhati, Assam (PAN : ABWPJ7034L, Directors Identification No. allotted by Ministry of Corporate Affairs : 00281673) stood already proved. In no situation, a prudent purchaser of immovable property will hand over back the original property papers to the seller. Both the lower authorities have not used their powers to make direct enquiries from the purchaser Shri .....

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#39;ble Supreme Court relied on by the ld. AR of the assessee in the case of Thiruvengada Pillai Vs. Navaneethammal & Anr. (supra). The documents are kept by the purchaser and not by the seller. Xerox copy was furnished for execution of sale agreement. Original copy being with the purchaser i.e. Shri Mangi Lal Jalan could not be produced. Ld. AO did not get verified from Shri Mangi Lal Jalan on per the address provided by the assessee with PAN ABWPJ 7034 L. Assessee having discharged her bur .....

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explanation. During the course of hearing ld. Counsel on queries contended that the possession of plot was given at the time of agreement after receiving the cash from Mangilal Jalan of Gauhati. Though sale transaction was completed capital gains were not offered in the return as assessee assumed that sale was not liable for capital gains. Thereafter, assessee has lost track of close relative who has never legally demanded registration of sale deed. Since the assessee received sale amount of plo .....

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