TMI Blog2016 (7) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... case, where the cash of ₹ 3 lakhs has been paid for purchase of agricultural land before Sub-Registrar i.e. in State Government office, the provisions of section 40A(3) are not attracted as the said cash of payment of ₹ 3 lakhs is part and parcel of total payment of ₹ 48,50,000/-. The assessee admittedly, had paid total sale consideration on the date of registration of Sale Deed itself i.e. on 12.09.2008 except demand draft of ₹ 10 lakhs, which was paid on 11.09.2008. Further, no action under section 147 of the Act can be taken on account of audit objections raised by the audit party. - Decided in favour of assessee. - ITA No.202/PN/2016 - - - Dated:- 8-7-2016 - MS. SUSHMA CHOWLA, JM For The Appellant : Writt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of cash payment of ₹ 3,00,000/- levied by the AO by invoking the provisions of section 40A(3) of the Act. 4. Briefly, in the facts of the present case, the assessee was carrying on the business of real estate. For the year under consideration, the assessee has furnished return of income declaring total income of ₹ 1,22,905/-. The case of the assessee was picked up for scrutiny and the original order of assessment was passed under section 143(3) of the Act on 19.12.2011 with assessed income at ₹ 2,19,860/-. The Assessing Officer on verification of records noted that the assessee had purchased the land bearing S.No.47/1 admeasuring 74R of mauje Igatpur Tal. Igatpuri, Dist. Nashik from Smt. Meenaben Bharat Mehta, Mum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 6. The assessee is in appeal against both the issues before the Tribunal. 7. The plea of the assessee by way of written submissions is that the proceedings under section 147/148 of the Act were initiated on the basis of audit objections and audit party had raised the objections on the basis of details furnished by the assessee during the course of regular assessment proceedings. The assessee further contends that the CIT(A) had dismissed the ground of appeal No.2 against quashing of proceedings under section 148 of the Act due to change in opinion of Assessing Officer, was dismissed as withdrawn. It was further pointed out by the assessee in the written submissions that this fact was brought to the notice of CIT(A) vide application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntal Representative for the Revenue placed reliance on the order of CIT(A). 9. On perusal of record and written submissions filed by the assessee along with Paper Book, the factual aspects of the case are that the assessee had declared total income of ₹ 1,22,905/-. The original assessment order was passed in the case of assessee under section 143(3) of the Act on 19.12.2011. The perusal of assessment order placed at pages 5 and 6 of the Paper Book reflects that the assessee had submitted the audit report along with audited statements of account during the proceedings and had also produced the books of account for verification. The Assessing Officer completed assessment after making disallowance on account of personal usage out of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 40A(3) of the Act, notice under section 148 of the Act was issued after recording reasons for reopening the assessment. The CIT(A) has upheld the reopening of assessment under section 147/148 of the Act. The Assessing Officer thus, further made an addition of ₹ 3 lakhs on account of disallowance under section 40A(3) of the Act, which has also been upheld by the CIT(A). 10. The grievance of assessee before the Tribunal is that the reassessment proceedings were initiated against the assessee on the basis of audit objections. All this information of payment for purchase of agricultural land was available on assessment records. The second plea of the assessee in this regard is that the action of Assessing Officer in reopening ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. The Assessing Officer has failed to point out whether any fresh facts came to his knowledge in order to establish the reason of belief against escapement of income by the assessee. In any case, where the cash of ₹ 3 lakhs has been paid for purchase of agricultural land before Sub-Registrar i.e. in State Government office, the provisions of section 40A(3) of the Act are not attracted as the said cash of payment of ₹ 3 lakhs is part and parcel of total payment of ₹ 48,50,000/-. The assessee admittedly, had paid total sale consideration on the date of registration of Sale Deed itself i.e. on 12.09.2008 except demand draft of ₹ 10 lakhs, which was paid on 11.09.2008. Further, no action under section 147 of the Act c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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