TMI Blog2019 (2) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... g officer. In the result, ground no. 1 of the Revenue’s appeal is allowed. Unexplained investment in purchase of three properties - Held that:- The total investment in the land including stamp duty and other transfer charges comes to ₹ 32,38,600/-. Considering a reasonable household expenditure of ₹ 1 lakh, it is reasonable to infer that investment to the extent of ₹ 23,97,600/- is explained. Therefore, the balance investment of ₹ 8,41,000/- remain unexplained and liable to be taxed U/s 69 of the Act. Accordingly, the addition on this account is reduced to ₹ 8,41,000/-. Appellant’s ground of appeal on this issue is partly allowed - ITA No. 449/JP/2018 And CO No. 10/JP/2018 - - - Dated:- 7-1-2019 - SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SINGH YADAV, AM For The Assessee : Shri P.C. Parwal (C.A.) For The Revenue : Dr. Ashvini Hosahani (JCIT) ORDER PER: SHRI VIKRAM SINGH YADAV, A.M. This is an appeal filed by the Revenue against the order of the ld. CIT(A), Alwar dated 11.01.2018 for the assessment year 2014-15 and the cross objection filed by the assessee wherein the respective grounds of appeal are as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of sale/purchase of property and the land so purchased is his stock-in-trade and since the stock-in-trade is also excluded from the definition of capital asset, on this account as well, the provisions of Section 56(2)(viib) of the Act are not attracted. Accordingly, he deleted the addition of ₹ 1,51,06,224/- in the hands of the assessee and granted the necessary relief. He however reduced the addition from 23,00,000/-to ₹ 8,41,000/- made by AO as unexplained investment in purchase of these properties. Now, the Revenue is in appeal against the deletion of addition made by the AO and the assessee is in appeal against the addition so confirmed by the ld CIT(A). 4. We have heard the rival contentions and perused the material available on record. The relevant provisions of section 56(2)(vii)(b) which are under consideration read as under: ( vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009 but before the 1st day of April, 2017,- ( a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or ( g) from any trust or institution registered under section 12AA; or ( h) by way of transaction not regarded as transfer under clause (vicb) or clause (vid) or clause (vii) of section 47. Explanation.- For the purposes of this clause,- ( a) assessable shall have the meaning assigned to it in the Explanation 2 to sub-section (2) of section 50C; ( b) fair market value of a property, other than an immovable property, means the value determined in accordance with the method as may be prescribed; ( c) jewellery shall have the meaning assigned to it in the Explanation to sub-clause (ii) of clause (14) of section 2; ( d) property means the following capital asset of the assessee, namely:- ( i) immovable property being land or building or both; ( ii) shares and securities; ( iii) jewellery; ( iv) archaeological collections; ( v) drawings; ( vi) paintings; ( vii) sculptures; ( viii) any work of ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty and thus even an agriculture land falls under the definition of an immoveable property and the provisions of Section 56(2)(vii)(b) are clearly attracted. On reading of provisions of 56(2)(vii)(b), we find that it refers to any immoveable property and the same is not circumscribed or limited to any particular nature of immoveable property. It refers to any immoveable property which by its grammatical meaning would mean all and any property which is immoveable in nature, i.e, attached to or forming part of earth surface. In the instant case, the assessee has purchases three plots of agricultural land and such agricultural land is clearly an immoveable property. Whether such agriculture land falls in the definition of capital asset u/s 2(14) or whether such agriculture land is stock-in-trade of the assessee, in our considered view, are issues which cannot be read in the definition of any immoveable property used in context of section Section 56(2)(vii)(b) and are thus not relevant. In the result, we set- aside the order of the ld CIT(A) to this extent and upheld the order of the Assessing officer. In the result, ground no. 1 of the Revenue s appeal is allowed. 7. Regardin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have attended the remand proceedings and confirmed their transactions with the appellant: Name of the person Dated of attendence Transaction (Advance/Gift) Amount Smt. Uganti Devi(Mother of the assessee), Dausa 01.08.2017 1,00,000/- (Gift) Sh.Ram Swaroop Sain (Father of the assessee, Dausa. 01.08.2017 10,50,000/- (Gift) Sh.Shyam Lal Bisariya, Alwar 01.08.2017 50,000/- (Advance) Sh.Bharat Lal Sain, 03.08.2017 50,000/- (Advance) Smt. Seema Sain (Wife of the assessee), Alwar 11.08.2017 1,00,000/- (Gift) Sh. Trilok Chand Sain (Assessee) 11.08.201 to 14.08.2017 -- Smt. Sarla w/o Indra Lal, Alwar 21.08.2017 40,000/-(Advance) Sh.Ramu Jatav, Alwar 21.08.2017 1,00,000/- (Advance) Hukam Chand, Al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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