Mariamma Kurian Vs ITO (ITAT Indore)
On-Money or Not, Source Traced to Agricultural Land – ITAT Deletes Rs.30 Lakh Addition u/s 69A- Registered Deed Shows Rs.6 Lakhs, Agreement Rs.33 Lakhs – Still No Unexplained Cash, Rules ITAT
Indore ITAT allowed the appeal of an individual widow Assessee & deleted the addition of Rs.30 lakhs made u/s 69A towards unexplained cash deposit.
Assessee, a pensioner, filed return declaring income of Rs.1,53,287/-. During scrutiny, AO noticed cash deposits of Rs.30 lakhs in her bank account. Assessee explained that the amount represented sale proceeds of rural agricultural land originally purchased by her late husband in 2005. Though the agreement to sell dated 14.10.2010 reflected consideration of Rs.33 lakhs, the registered sale deed mentioned Rs.6 lakhs. Assessee contended that she actually received Rs.30 lakhs, supported by affidavit of her brother-in-law who executed the sale on her behalf. The proceeds were subsequently invested in purchase of another agricultural land for Rs.30.60 lakhs. AO rejected the explanation & made addition u/s 69A treating the deposits as unexplained.
CIT(A) confirmed the addition holding that registered sale deed showed consideration of only Rs.6 lakhs & hence source of Rs.30 lakhs could not be linked to land sale.
Before Tribunal, it was argued that the land was rural agricultural land situated beyond 15 kms from municipality, supported by certificates of Tehsildar & Village Officer, hence not a capital asset u/s 2(14). Reliance was placed on judicial precedents including Laxmi Chand Baijnath 35 ITR 416 (SC) to contend that where only one source of income exists, unaccounted sum should be attributed to that source. It was further submitted that even otherwise, exemption u/s 54B was available as the entire proceeds were invested in another agricultural land.
