TMI Blog2022 (8) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... ing explanation offered by the assessee before the CIT(A) by way of fresh evidences which have been confronted to the AO, reasons for discarding the explanation of the assessee set out cannot be upheld As in the peculiar facts of the present case in the face of the assessee's pleading that Smt. Gurdial Kaur was mother of Shri Jasveer Singh which remains unrebutted on record and the fact that late Shri Jasveer Singh also had interest in the land being purchased and hence was paid. This fact also remains unrebutted on record, the availability of funds doubted by the AO stands explained by way of cheque payments made by the assessee from another bank account No. 55110180046 of SBOP, Jakhwali branch which initially had remained unnoticed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account at the time of purchase of land, despite the fact that the assessee had sufficient funds in his bank account as last installment of the agricultural land sold was received on 19.06.2008 amounting Rs. 57,50,000/- and the assessee had made payment of Rs. 10,00,000/- to Sh. Jasbir Singh vide cheque no. 027874. 5. The CIT(A) has further made an enhancement of Rs. 10,00,000/- in the total income determined by ld. AO on account of unexplained investment u/s. 69 the Act. The aforementioned amount of Rs. 10,00,000/- was paid to the Smt. Gurdial Kaur (mother of the seller, Sh. Jaswinder Singh) vide cheque no. 027872 which got cleared by a delay of one day i.e. 27.06.2008 with the consent of the seller himself in lieu of the agricultura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im was supported by copy of Agreement dated 15.04.2008 The AO accepted the explanation in part, however, the claim of further application of the sale proceeds by the assessee was rejected to the extent of Rs. 10,53,000/-. The AO noticed that the sale of agricultural land for the amount was not found recorded. As a result of this fact, addition of Rs. 10,53,000/- as unexplained investment in the purchase of the land on 26.06.2008. Addition was also made for income of bank interest of Rs. 3943/-. 6. Aggrieved by this, the assessee came in appeal before the CIT(A). A perusal of the submissions advanced as extracted in the order shows that the assessee explained that the AO while making the addition ignored payments made from another Bank ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Since Shri Jasveer Singh had passed away, confirmation from him could not be filed. 7. Para 6.2.1 at page 16 would show that the CIT(A) has dismissed the explanation in regard to the cheque payment of Rs. 10 lacs holding that no evidence from Shri Jasveer Singh's family members could be filed (page 17) and addition by way of enhancement of Rs. 10 lacs was made holding that why a payment of Rs. 10 lacs was made to Smt. Gurdial Kaur. The explanation of the assessee extracted in the impugned order at page 16 namely, ld. AR vide letter dated 25.11.2019 has merely submitted that she is mother of Shri Jasvir Singh/Shri Jasvinder Singh. Again no evidence has been provided (i) that she is mother of sellers and (ii) more importantly no info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the availability of funds doubted by the AO stands explained by way of cheque payments made by the assessee from another bank account No. 55110180046 of SBOP, Jakhwali branch which initially had remained unnoticed. This fact also remains unrebutted on record. I find that in the peculiar facts and circumstances, the sustaining of the addition or the further enhancement of the addition is unwarranted on facts. Considering the record and the explanations, the addition made is directed to be deleted and the enhancement challenged vide ground No. 6 also set aside. Accordingly, the appeal of the assessee is allowed. Said order was pronounced in the Open Court at the time of hearing itself. 11. In the result, the appeal of the assessee is allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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