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TMI Blog2023 (3) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... ot been appreciated in the correct perspective and as such the addition sustained merits to be deleted. 3. That the order of the Ld. CIT(A) is erroneous, arbitrary, opposed to the facts of the case and thus untenable." 2. Briefly the facts of the case are that basis information received by the Assessing officer that there were cash deposits amounting to Rs. 31,00,050/- in the assessee's bank account maintained with Punjab National Bank and given the fact that the assessee has not filed any return of income, proceedings under Section 147 of the Act were initiated and notice under Section 148 of the Act was issued. In response to the notice, the assessee filed his return of income declaring interest income of Rs. 28,165/- and agriculture income of Rs. 1,40,500/-. Further during the course of assessment proceedings, the AO observed that there were five credit entries through cheque deposits in the bank account so maintained by the assessee with PNB wherein amount totalling to Rs. 39,61,000/- have been deposited. Explanation/Information was called for and the Counsel on behalf of the assessee submitted that the amount so deposited represents sale proceeds of agricultural land. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the territorial jurisdiction of Municipality, Cantonment Board etc. and village Khanpur Rajputan is situated at a distance of about 12 kms from Naraingarh which falls beyond the specified area. It was accordingly submitted that the agricultural land so sold by him doesn't form part of capital asset as defined in Section 2(14) of the Act and the whole of the consideration so received is duly explained by way of sale of agriculture land not liable to tax. 4. The ld CIT(A), accepting the assessee's submissions, has returned a finding that "on perusal of the submissions alongwith documentary evidences, it is evident that the deposits in the assessee's bank account amounting to Rs. 39,61,000/- were out of sale proceeds of agricultural land sold by him". However, given that the sale deed of the agriculture land was executed for a lower consideration of Rs. 17,20,000/-, the excess amount of Rs 22,41,000/- over and above the consideration as per registered sale deed shall partake the character of "income from other sources" and the contention of the assessee that the same equally qualifies and partake the character of income arising out of sale of agriculture land was not accepted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22/02/2010 are not in dispute. The assessee has explained that these cheque payments were received from Mr Sahdev Kankarwal being the sale proceeds of agriculture land and in support, copy of registered sale deed dated 19/02/2010 along with copy of bank statement of two bank accounts maintained by the buyer, Mr Sahdev Kankarwal have been placed on record. On perusal of these bank account statements, it is noticed that particulars of the cheque deposits in the assessee's bank account namely cheque numbers and date of credit exactly tallies with the cheque numbers and date of debit in the buyer's bank accounts. Therefore, the factum that these credits in the assessee's bank account are through the debits in the buyers bank account are clearly established and lends credence to assessee's explanation that there was direct nexus between receipt of sale consideration and deposits thereof in his bank account within few days of registration of sale deed. We find that a similar matter came up for consideration before the Coordinate Jaipur Benches in case of Shri Pappu Ram Saran vs ITO (in ITA No. 1303/JP/2018 dated 03/09/2020) wherein it was held that where the cash was deposited on the ver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etween transaction of sale and deposit in bank account then only inference can be drawn from these facts and circumstances of the case is that the source of deposit of Rs. 27,50,000/- is the sale consideration of the land. The Assessing Officer has not brought anything contrary on the record during the remand proceedings such as examination of the purchaser. Therefore, in the absence of any contrary material the explanation of the assessee regarding source of cash deposit in the bank account cannot be disputed. This Tribunal in case of M/s OM Plantation vs. ITO (supra) has considered an identical issue in para 6 as under:- "6. We have considered the rival submissions as well as the relevant material on record. The assessee purchased the land situated at Bhankrota, Jaipur vide two sale deeds both dated 11/8/2005 for a total consideration mentioned in the sale deeds at Rs. 1,76,34,000/-. However, the Assessing Officer received the report of the DDIT(Inv) alongwith the details of the cash deposits in the bank accounts of the sellers and their relatives and further an agreement to sell dated 11/5/2005 wherein the consideration @ Rs. 28,25,000/- per bigha was agreed upon between the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has reproduced the statements of the branch manager wherein the amounts were deposited as well as the relatives of the sellers who have confirmed the receipt of cash and deposit of the same in the bank account. Thus, we find that the assessment framed by the Assessing Officer is not solely based on the statements recorded by the Investigation Wing but there was tangible material in the shape of the bank accounts statements, agreement to sell and sale deeds which are of course not in dispute. The only dispute raised by the assessee is regarding the photo copy of the agreement and its evidentiary value, however, it is not the issue of legal enforceability of the said agreement and the claim under the agreement but the contents of the agreement which are to the extent corroborated by the independent evidence being sale deeds and further the bank statements of the sellers cannot be denied on the technical ground of admissibility. Therefore, once the payment of cash is reflected from all these documents as well as statements of the parties then the technical objection raised by the assessee will not help the case of the assessee." In view of the facts and circumstances of the ..... 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