ACIT Vs Lingaiah Amidyala (ITAT Hyderabad)
The appeal was filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2019-20, challenging the deletion of an addition of ₹3,15,38,320 made towards long-term capital gains based on a seized loose sheet allegedly showing receipt of cash over and above the registered sale consideration for immovable property.
Background of the Case
The assessee, an individual earning salary income from Yashoda Healthcare Services Pvt. Ltd., filed the original return of income declaring ₹64,90,640. A search under Section 132 was conducted in the Yashoda Group, followed by a search in the assessee’s case, during which certain loose sheets and documents were seized. Pursuant to notice under Section 153A, the assessee filed a return declaring the same income. The Assessing Officer completed the assessment under Section 153A by making an addition of ₹3,15,38,320 as capital gains, alleging that the assessee had received cash over and above the cheque consideration reflected in the registered sale deeds.
Basis of the Addition
The Assessing Officer relied upon Page 24 of Annexure A/LA/RES/01, which mentioned the sale of 698.66 square yards at ₹52,000 per square yard, recording total consideration of ₹3,63,30,320, including ₹47,92,000 by cheque and ₹3,15,38,320 in cash. Since the extent of land and cheque component matched the registered sale deeds, the Assessing Officer concluded that the assessee had received the alleged cash component and added it as capital gains.
