TMI Blog2020 (6) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... er to the file of the AO for examining the abstract of cash book given. If the same accords with the regular books of account maintained by the assessee, then no addition should be made. Addition on account of cost of improvement - as per revenue assessee failed to prove that improvement was carried out to the property in question - HELD THAT:- assessee carried out improvement to the property through M/s. S.S. Rathi Developers. A copy of ledger account of the contract receipts of Mr. S. S. Rathi has been placed on record, in which receipt of ₹ 10,75,920/- from the assessee has been included. Such amount of total contract receipts at ₹ 29,56,976/- has gone into his Profit and loss account. He furnished the return with the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ential address in the return of income. AR submitted that Rathi Niwas house belongs to his father. In support of this contention, he placed on record a copy of payment of house tax in respect of this property by his father. It, therefore, becomes evident that Rathi Niwas house was not a residential house owned by the assessee on the date of transfer of the agricultural land. The assessee was having only one house, namely, flat at Salisbury Park. After transferring the agricultural land, the assessee availed exemption by purchasing another property on 28-09-2010. Thus, it is seen that there is no violation of sub-clause (i) of clause (a) of proviso to section 54F as well. Assessee was right in claiming the benefit of exemption u/s.54F. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has placed on record an abstract of his cash book on page 100 onwards of the paper book. The relevant extract of cash book for the month of November, 2009, when cash of ₹ 13,10,000/- was deposited, has been placed at page 108 of the paper book. It can be seen that the opening cash balance as on 01-11-2009 stood at ₹ 13,35,601/-. The assessee made cash sales of ₹ 23,22,240/- and ₹ 3,78,600 on 01-11-2009. Thus, a total cash sales on 01-11-2009 stood at ₹ 27,00,840/-. Out of such available cash balance, the assessee deposited a sum of ₹ 13,10,000/- in his bank account. The ld. DR submitted that the authenticity of such an abstract of cash book is not established. In our opinion, if the position of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) echoed the addition. 7. Having heard both the sides and gone through the relevant material on record, it is observed that the assessee carried out improvement to the property through M/s. S.S. Rathi Developers. A copy of ledger account of the contract receipts of Mr. S. S. Rathi has been placed on record, in which receipt of ₹ 10,75,920/- from the assessee has been included. Such amount of total contract receipts at ₹ 29,56,976/- has gone into his Profit and loss account. He furnished the return with the resultant income accordingly. When the assessee furnished bill from M/s. S. S. Rathi Developers for carrying out improvement to the property and the said receipt from the assessee has been subjected to tax in the hands of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agricultural land on 13-07-2009 and the financial year under consideration is from 01-04-2009 to 31-03-2010. The assessee purchased one residential property on 08-03-2010 which was sold after 3 months on 24-06-2010. No exemption u/s.54F was claimed with reference to such property purchased and sold within a gap of around 3 months. The assessee purchased another property on 28-09-2010. It is this property with reference to which the assessee claimed exemption u/s.54F. The AO has relied on proviso (a)(ii) of section 54F for denying the exemption. This part of the provision stipulates that no benefit of exemption u/s.54F would be allowed where the assessee : `purchases any residential house, other than the new asset within a period of one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter the close of the year on 24-06-2010. There is another flat at Salisbury Park reflected in the balance sheet with value of ₹ 17,05,710/-. This was the only residential house that the assessee was owning on the date of transfer of agricultural land on 13-07-2009. The ld. CIT(A) noticed that the assessee was having one more residential house, being, Rathi Niwas, Loni Kalbhor, Tal. Haveli, Dist. Pune, which was shown as his residential address in the return of income. The ld. AR submitted that Rathi Niwas house belongs to his father. In support of this contention, he placed on record a copy of payment of house tax in respect of this property by his father. It, therefore, becomes evident that Rathi Niwas house was not a residential ..... X X X X Extracts X X X X X X X X Extracts X X X X
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