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TMI Blog2020 (8) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act,1961. 2. The learned Commissioner Of Income Tax (Appeals) 2, erred in law and on the facts in not appreciating the explanation of the assessee that cheques could not be presented for clearing due to a ban put on the operations of Pen Co-operative Urban Co-operative Bank and he could not make the alternative arrangements for payment to the assessee. Thus the buyer failed to honour his commitment of payment for land hence the agreement became inoperative or null and void due to non-performance of the buyer. Subsequently fresh cheques were issued by buyer only in July 2014." 2. The brief facts in this case are that the assessee is a Stenographer in Maharashtra State Road Transport Corporation and derives income from salary. Durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made the addition. The Assessing Officer further proceeded to levy the penalty u/s 271(1)(c) of the Act at Rs. 1,06,041/- being 100% of the tax sought to be evaded. 3. The case of the Department is that on concealment of income by the assessee, being aggrieved the assessee preferred appeal before Ld.CIT(A) and placed on record detailed written submissions before him. The Ld.CIT(A) after considering the assessment order, facts of the case as well as the submissions of the assessee has observed and held that the assessee was in obligation to disclose the transaction in the return of income and should have shown the income from capital gains. In the opinion of the Ld.CIT(A), the assessee suppressed the transaction and only it came to light du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, no payment was realized by the assessee and it was only realized in the year 2014 and that further the buyer and the seller has actually agreed that they would present the cheques in October, 2010 whereas in September 2010, the R.B.I. put restrictions on the functioning of the Bank i.e., Pen Co-operative Urban Bank Ltd., w.e.f. 24.09.2010 and this is the same bank from where the cheques were supposed to be cleared and received by the assessee to the extent of 1/4th share in the sale transaction. But due to the bank being in critical financial condition and the said restrictions imposed on the bank by the R.B.I, no payment was realized in the year under consideration. These facts were not disputed by the learned Departmental Represent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has received some on-money in respect of sale of flats but he has not mentioned what is the exact quantum of such on-money receipts. The mere fact that though the receipt of on-money is a prevalent practice in the case of transaction in flats, it cannot be presumed that there was a concealment of income or evasion of taxes. The Department must bring out material to indicate the actual concealment of income. The whole discussions in the assessment order clearly shows that the Department has proceeded only on the basis of the cost of construction. At the stage when enquiries were made, the assessee has got the valuation done by an approved valuer and filed the revised returns and paid the taxes thereon. This conduct clearly show ..... X X X X Extracts X X X X X X X X Extracts X X X X
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