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TMI Blog2025 (2) TMI 512X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs. 57,58,180/- on account of alleged invoking the provisions of section 50C of the Act. 3. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs. 12,89,500/- on account of alleged rejecting the contention of the assessee that the cash deposited in her bank account was made out of cash balance accumulated from her agriculture income. 4. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in holding that the Talati-Cum- Mantri of Village is not competent authority to issue the distance certificate from the municipal limits of the nearest city i.e. Surat to Village Kosmadi and computing capital gain at Rs. 21,64,695/-. 5. On the facts and in the circumstances of the case as well as the law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee that the distance of 19.4 kilometres of the land from the local limits of the city of Surat is not correct. The certificate issued by the Talati-cum-Mantri is not acceptable because he is not the competent authority to decide the distance of any specific land. On the other hand, the Executive Engineer, Road and Building is the competent authority. The AO also asked assessee to explain all credit entries appearing in the bank account. He asked as to why the entire credit entries including cash should not be added u/s 68 of the Act. The AO further asked why capital gain on sale of immovable property should not be treated as undisclosed income and why difference of Rs. 57,58,180/- between the value of SVA and registered value [Rs.81,32,180 - Rs. 23,74,000] should not be added u/s 50C of the Act. The assessee requested to allow 10 days' time, but nothing was submitted after the said period. Thereafter, the AO measured the distance of the land sold from the google map and noticed that the land was situated within 8 kilometres from the municipal limits of Surat city. Hence, it was a capital asset u/s 2(14) of the Act and the gain from transfer of such land was chargeable to tax un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hown to have been paid in the sale deed was rightly taxed by the AO u/s 50C of the Act. 4.2 Regarding the cash deposit, the appellant had shown opening cash balance of Rs. 12,01,000/- as on 01.04.2011. The CIT(A) stated that AO has observed that the appellant filed the return of income for the first time showing agricultural income of Rs. 90,000/-. The appellant had withdrawn cash from the bank at regular intervals and had not furnished any explanation as to why the cash was withdrawn and accumulated despite of cash in hand. The appellant relied on the decision of ITAT, Surat in ITA No.116/SRT/2021 (Jitesh Vithalbhaia Rashiya vs. ITO), whose facts were different from the assessee's case because in the said case the assessee had filed complete details and also cash flow statement for earlier years substantiating availability of the opening cash in hand. Since, the facts were not similar, the CIT(A) concluded that the cash book produced with the opening balance of Rs. 12,01,000/- is only an after-thought to justify the cash deposits in the bank accounts. Hence, the CIT(A) dismissed all the grounds raised by the appellant. 5. Aggrieved by the order of CIT(A), the assessee filed appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India, not being land situated more than 8 kilometres from the local limits of any municipality or cantonment board. The ld. AR has given a certificate from the Dy. EE (R & B), Surat, according to which the distance was 8.5 kilometres. The CBDT in its Circular No.17/2015 (supra) has made it clear that the shortest road distance has to be measured to decide whether the agricultural land is a capital asset or not. Fore ready reference, the said Circular is reproduced below: "CBDT CIRCULAR NO.17/2015, Date: October 16, 2015 Sub: Measurement of the distance for the purpose of section 2(14)(iii)(b) of the Income-tax Act for the period to Assessment Year 2014-15 "Agricultural Land" is excluded from the definition of capital art per section 2(14)(iii) of the Income-tax Act based inter alia on its proximity to municipality or cantonment board. The method of measuring the distance of the said land from the municipality, has given rise to considerable litigation. Although, the amendment by the Finance Act, 2013 w.e.f 01.04.2014 prescribes the measurement of the distance to be taken aerially, ambiguity persists in respect of earlier periods. 2. The matter has been examined in light of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & 6 pertain to addition of Rs. 12,89,500/- being cash deposited in the bank account during financial year (FY) 2011-12. The appellant submitted that cash was deposited out of cash on hand accumulated from agricultural income. The assessee had shown opening cash balance of Rs. 12,01,000/- as on 01.04.2011. However, no supporting evidence was furnished by the assessee before AO or the CIT(A). It was found by AO that assessee had withdrawn cash from bank account on regular interval. In the return filed u/s 148 of the Act, she has shown income of Rs. 1,62,947/- and agricultural income of Rs. 90,000/-. The CIT(A) has repeated the finding of AO and upheld the addition. No supporting evidence was filed by the assessee before us to substantiate availability of cash of Rs. 12,01,000/- as on 01.04.2011. The cash book submitted by the lower authorities was only a feeble attempt to justify deposit of cash by the assessee. However, the assessee has withdrawn various amounts from her bank account. She has also shown agricultural income of Rs. 90,000/- during the year. Considering the totality of facts, it would be reasonable if cash of Rs. 4,00,000/- is treated as explained and addition of rema ..... X X X X Extracts X X X X X X X X Extracts X X X X
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