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TMI Blog2024 (8) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of cash deposits in the bank; and ii. Confirming addition of Rs. 45,79,404/- on account of alleged Long Term capital Gain (LTCG). 3. Shri Rohit Tiwari appearing on behalf of the assessee narrating facts of the case submitted that the assessee is an ex-servicemen. The assessee sold his agricultural land at village Mukarrabpur Palhera, Pargana Daurala Meerut for a total consideration of Rs. 55,33,320/- to M/s Ruchiram Buildtech Pvt. Ltd. in the year 2012. The assessee received Rs. 20 lakhs vide two cheques of Rs. 10 lakhs each. The remaining consideration of Rs. 35 lakhs was paid by the purchaser by way of four post dated cheques all dated 01.02.2015 i.e. three cheques of Rs. 10 lakhs each and one cheque of Rs. 5 lakhs. The photocopies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchase of plot the funds were to be sourced from sale consideration to be received from sale of land, the latter transaction did not mature as the first transaction of sale of land was wedged due to non-payment of balance consideration by the purchaser. The assessee received back Rs. 20 lakhs in cash from Madhur Infra Developers P. Ltd., on 27.09.2014. The said cash amount was deposited by the assessee in his bank account on 01.10.2014. The cash deposit by the assessee in the bank has been wrongly added back by the AO/CIT(A) without proper examination of facts and without considering the submissions of the assessee. Thus, the ld. Counsel prayed for deleting the addition made on account of cash deposits in bank. 4. Per contra, Shri Vivek Va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 20,33,320/- only and the balance amount of Rs. 35 lakhs was not actually received by the assessee at the time of execution of registered sale deed dated 01.10.2014 as the cheques dated 01.02.2015 for remaining amount of consideration Rs. 35 lakhs were dishonored. The assessee had to file criminal complaint u/s. 138 of the Negotiable Instruments Act for the recovery of said amount. 7. The first addition made by AO is in respect of cash deposits in the bank Rs. 20 lakhs. The assessee has placed on record his savings bank account statement with Punjab & Sind Bank (at page 39 & 40 of paper book) which reflects that two cheques of Rs. 10 lakhs each were credited in the bank account of the assessee in May 2012. The aforesaid cheques were ost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Developers P. Ltd. The proximity of receipt of cash by the assessee from Madhur Infra Developers P. Ltd. and cash deposits of Rs. 20 lakhs reflected in the bank account on 01.10.2024 fairly indicate the possibility of deposit of cash received by the assessee from Madhur Infra Developers P. Ltd. Thus, deposit of cash in the bank account stands explained by the assessee. A specific query was made to the Counsel for the assessee as to whether the documents on which reliance has been placed before the Tribunal were furnished to the AO and CIT(A), he made statement at Bar that all these documents were furnished to the authorities below and a certificate to this effect has also been given by him after the Index of paper book. 9. In light of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed assessment year on the presumption that the entire consideration of Rs. 55,33,320/- has been received by the assessee , as the Sale Deed was executed & registered in the relevant period and accordingly worked long term capital gain on sale of land at Rs. 45,79,404/-. In First Appellate proceedings, the CIT(A) noted the fact that Rs. 35 lakhs was not received by the assessee, the CIT(A) directed the AO to recalculate capital gain on the sales consideration to the extent actually received i.e. Rs. 20,33,320/- only. After examining peculiar facts of case, we are of considered view that the computation of LTCG in the impugned AY is not in accordance with the provisions of the Act. 10.2 Be that as it may, the ld. Counsel for the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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