TMI Blog2022 (10) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... id amount u/s.69A of the Act by the A.O. Unexplained cash credit u/s.68 - As in order to verify the authenticity of the aforesaid claim of the assessee had referred to one of the sale transaction in which Shri. Santosh Yadav (supra) was stated to be a purchaser and had appeared a/w. the assessee in the course of the appellate proceedings. On being queried about the source of the aforesaid amount it was claimed by him that the same was the amount that was received from the final purchaser - No details as regards the name and address of the alleged final purchaser were provided by him. Also, in the remaining four sale transactions the story was no better and neither any details about the final purchaser were divulged nor any documents in support thereof were filed by the assessee before the CIT(Appeals). As observed by the CIT(A) that the assessee and his associates had also failed to provide the details of their respective share of profits in their so called land broking business that was claimed to have been jointly carried out by them. It was further observed by the CIT(A) that the brokerage receipt that was shown by the assessee in his return of income could not be corela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Rs.55.58 lacs in his bank account. On being queried, it was the claim of the assessee that in the normal course of his land brokerage business he would receive in his bank account the sale consideration on behalf of his clients, which after deduction of his commission/brokerage would be transferred to them. However, the aforesaid explanation of the assesee did not find favour with the A.O. It was observed by the A.O that the bank statement of the assessee did neither reveal any such transferring of amounts to the impugned sellers nor withdrawing of any such amount for making payments to them. On being called upon to substantiate the veracity of his aforesaid claim the assessee filed with the A.O copies of some sale deeds and Ikrarnamas (agreements). The A.O after perusing the records in the backdrop of the facts involved in the case before him was not inclined to accept the explanation of the assessee. The AO was of the view that the assessee himself was engaged in the business of purchase and sale of land. It was observed by the A.O that the modus-operandi that was adopted by the assessee was to convince poor farmers to sell their lands and obtain/execute Mukhtiar (power of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven a thoughtful consideration to the facts involved in the present case before us in the backdrop of the contentions advanced by the Ld. AR, we find substance in the claim of the Ld. AR that the simplicitor cash deposits made by the assessee in his bank account could not have been held as an unexplained cash credit u/s.68 of the Act. Our aforesaid conviction is supported by the judgment of the Hon ble High Court of Bombay in the case of Bhaichand H. Gandhi (supra) and the order of the ITAT, Mumbai in the case of Mehul M. Vyas (supra) as had been relied upon by the Ld. AR before us. Although we have principally concurred with the aforesaid claim of the ld. AR, but the same in our considered view would not have any material bearing on the sustainability of the addition made in the hands of the assessee. We, say so, for the reason that setting-aside of the re-characterization of the addition by the CIT(Appeals) would result to resurfacing of the addition made by the AO u/s.69A of the Act. 10. We are now confronted with the issue that as to whether or not the provisions of section 69A of the Act could have been triggered by the A.O for making the addition of Rs.55.58 lac (supra). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tosh Yadav: - The sale/registry is done directly among the purchaser and seller. WE only use to rotate the transaction through us so that we should get our marginal 1-3% on sale. - Since the rate of land to be sold is also very transparent to the seller and purchaser. - There is no-/ very less chance of us to receive more profit as the market of land is very open and our purchaser himself does not register to the seller: - All the partners were a bit dependent on me to do the bank transactions to maximum level; -That as per annexure attached we had done transaction in the bank account and had utilized the cash amount through my account; - That during the FY 2012-13 my self and all my other partners were unaware of the IT provisions and the need of accounting. Income tax, profit calculation and applicability of taxation; - We only knew that if the total profit which is received by me is within the taxable limit I may not be required to pay tax; -Since my total income is within the limit I got relieved without knowing that transactions related to other persons and partners should not be reflected through my account; -I have done all transactions and only t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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