New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (4) TMI 650 - ITAT HYDERABAD

2016 (4) TMI 650 - ITAT HYDERABAD - TMI - Addition u/s 69A - sum was deposited after a period of two months from the date of agreement of sale - Held that:- There is no requirement under the law that under the Act assessee has to deposit the entire sale consideration into his bank account immediately. The assessee may retain some amount for his personal or business needs and can subsequently make the deposit as per his convenience. Therefore, the reason on which the Ld. CIT(A) has made the disal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e assessee from three persons - Held that:- The assessee has claimed the interest portion as against the income from other sources and has never claimed under section 24 of the Act. Since the assessee has also not filed any evidence whatsoever in support of its claim before the authorities below or before this Tribunal, we do not see any reason to interfere with the order of the Ld. CIT(A). - ITA No. 328/Hyd/2015, ITA.No.325/Hyd/2015 - Dated:- 6-4-2016 - Smt. P. Madhavi Devi, Judicial Member And .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

5, the Revenue s appeal is dismissed as withdrawn by the department. 2.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 ₹ 5,88,000 out of the advance of ₹ 21 lakhs received by the assessee on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f income declaring income of ₹ 4,72,081 on the ground that assessee did not declare the salary and interest on capital received from M/s. Venkatadri Enterprises in the original return of income. Thereafter, during the assessment proceedings under section 143(3) of the I.T. Act, the bank account statements of the assessee were obtained and verified. On verification of the same, the A.O. noticed that the assessee has made cash deposits into his bank account in ING Vysya Bank (Rs.25,66,035) a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pt of advance of ₹ 21 lakhs, details of the purchaser including income tax returns etc., In response to the same, the assessee furnished the copy of the un-registered agreement of sale dated 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 ₹ 21 la .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

me tax returns till date. To ascertain the correctness of the transactions and to verify the creditworthiness of the said party, the A.O. issued summons under section 131 of the I.T. Act and a statement dated 26.12.2013 was recorded. In the said statement, Mr. Surendra Yadav confirmed that the sum of ₹ 21 lakhs is given to the assessee herein in cash in three installments and that he has mobilized the amount from his family members and has given it to the assessee for purchase of ac.2.00 o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and also the hospital expenditure of his mother who had met with an accident. The A.O. observed that Mr. Surendra Yadav has not been able to produce any material evidence in support of his claim of savings, the source for making the payment of ₹ 21 lakhs. The assessee was also confronted with the statement of Mr. Surendra Yadav to which the assessee filed a reply vide letter dated 02.01.2014 ratifying the statement of Mr. Surendra Yadav about the agreement of sale as well as the cancellati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 of sale and also the deposit of sum of ₹ 15,12,000 immediately after the date of agreement but has disallowed a sum of ₹ 5,88,000 on the ground that the same was deposited after a period of two months from the date of agreement of sale. He submitted that the finding of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

filed an appeal against the finding of the Ld. CIT(A) but due to CBDT Circular No. 21/2015 dated 10th December, 2015, the Revenue s appeal was dismissed on account of low tax effect. Therefore, he objected to the assessee s contentions by placing reliance upon the assessment order and also the factum that the agreement of sale was un-registered. He also submitted that the purchaser could not establish his creditworthiness to have advanced a sum of ₹ 21 lakhs on the date of entering into a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at 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 nature and source of acquisi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e has been or has not been maintaining his books of account. The A.O. has also not made any comment about the correctness or otherwise of the books of account. Therefore, whether the money has been recorded in the books of account is a matter of fact which needs verification. Further, as far as assessee is concerned, the assessee has deposited the cash into his bank account and the A.O. has sought to examine the creditworthiness of the purchaser. The statement of the purchaser Mr. Surendra Yadav .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s 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 ₹ 40,000 to ₹ 45,000. The Ld. D.R. had argued that if the income of the said family members of the said person was ₹ 40,000 to ₹ 45,000 per month, then they ought to have filed returns of income. We cannot agree with this contention of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the genuineness of the transactions ought not to have disallowed ₹ 5,88,000 on the sole ground that the sum was deposited after a period of two months from the date of agreement of sale. There is no requirement under the law that under the Act assessee has to deposit the entire sale consideration into his bank account immediately. The assessee may retain some amount for his personal or business needs and can subsequently make the deposit as per his convenience. Therefore, the reason on wh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tax effect, we find that it is also not maintainable on merits. Assessee s grounds of appeal Nos. 1 to 5 are allowed and addition of ₹ 5,88,000 is also deleted. 9. As regards the disallowance of interest of ₹ 2.34 lakhs on the loans taken by the assessee 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 th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version