9911796707
TMI Blog2016 (4) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... s only Rs. 4.67 lakhs. In view of CBDT Circular No.21/2015 dated 10th December, 2015, the Revenue's appeal is dismissed as withdrawn by the department. 2. In the result, ITA.No.328/Hyd/2015 of the Revenue is dismissed. ITA. No. 325/Hyd/2015 : 3. This is assessee's appeal. We find that though the assessee has raised as many as 10 grounds of appeal, ground No.10 is general in nature and needs no adjudication. Ground Nos. 1 to 5 are against the order of the Ld. CIT(A) in sustaining the addition of Rs. 5,88,000 out of the advance of Rs. 21 lakhs received by the assessee on agreement of sale while Grounds 6 to 9 are against the disallowance of payment of interest of Rs. 2.34 lakhs on loans obtained by the assessee through cheques from three p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 08.06.2010 according to which, the assessee has entered into an agreement with one Mr. Surendra Yadav son of G. Sivaiah, aged 55 years, for sale of agricultural land admeasuring ac.2.00 in Survey No.1356 situated at Nandigam (v), Kottur (M), Mahabubnagar District for sale consideration of Rs. 21 lakhs. The assessee also submitted a confirmation letter dated 08.11.2013 issued by Mr. Surendra Yadav confirming that they paid an advance of Rs. 21 lakhs towards purchase of agricultural land under consideration. 4.1. The A.O. called for certain details from Mr. Surendra Yadav which were also filed. It was further submitted that the said Surendra Yadav derives income from maintenance of she-buffaloes and sale of milk which forms part of agricul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of sale as well as the cancellation of the said agreement and refund of the advance amount. The A.O. was however, not convinced with the assessee's contentions and held that it is an attempt made by the assessee to bring his own unaccounted money into the books. He, therefore, added it to the income of the assessee under section 69A of the I.T. Act, 1961. Aggrieved, assessee filed an appeal before the Ld. CIT(A) who granted partial relief to the assessee and sustained the addition of Rs. 5,88,000 against which, the assessee is in appeal before us. 5. The Ld. Counsel for the assessee, Mr. G. Kalyandas, submitted that though the A.O. had doubted the existence of the agreement of sale itself, the Ld. CIT(A) has accepted the said agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book to demonstrate that the assessee had reflected these payments in its statement and therefore, the provisions of section 69A are not applicable, to which, the Ld. D.R. rebutted stating that the receipts and payments statement is not part of the books of account and that the assessee has not maintained nor furnished any books of account for verification by the A.O./Ld. CIT(A). 8. Having regard to the rival contentions and the material on record, we find that section 69A of the Act applies, where an assessee is found to be owner of any money, bullion, jewellery or other valuable article which is not reflected in the books of account, if any, maintained by him for any source of income and the assessee offers no explanation about the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O. The A.O. has disbelieved the statement on the sole ground that the said person has failed to provide any material evidence in support of his claim that the net income of the family per month after meeting all the expenditure related to dairy is about Rs. 40,000 to Rs. 45,000. The Ld. D.R. had argued that if the income of the said family members of the said person was Rs. 40,000 to Rs. 45,000 per month, then they ought to have filed returns of income. We cannot agree with this contention of the Ld. D.R. because Mr. Surendra Yadav and his family members are all engaged in agricultural activities and any income arising from such activity is not chargeable to income tax. Therefore, they are not required to file the returns of income. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee from three persons allegedly for alternation, modification, repairs and maintenance of the property No.1-3- 183/40/81, Gandhinagar, Hyderabad, we find that the A.O. and the Ld. CIT(A) have confirmed the disallowance on the ground that assessee has failed to produce any evidence in support of its claim. 10. Before us, the Ld. Counsel for the assessee, submitted that the loans were taken for the purpose of alteration and modification of the property and none of the authorities have verified the claim of the assessee whether the same pertains to the property owned by the assessee and pleaded that the claim of the assessee ought to have allowed under section 24 of the I.T. Act. He therefore, prayed that the issue may be remitted to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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