Case Law Details
Surat Singh Vs ITO (ITAT Delhi)
The second ground of argument of the learned authorised representative is that the learned assessing officer has reopened the case of the assessee for the purpose of verification of the cash deposited in the savings bank account as income escaped. The learned assessing officer has not made any addition on the account of cash deposited in the bank account. However, the learned assessing officer has made an altogether different addition of the long term capital gain chargeable to tax on sale of an agricultural land of the assessee. Therefore, if the AO has not made any addition because of cash deposited in reopened assessment, according to the learned authorised representative, it is not open for the AO to make any addition in absence of that addition. Looking at this aspect of the argument, it is apparent that assessee has deposited cash in the savings bank account. The AO wanted to examine the source of this cash deposited in the bank account. Therefore, in absence of any other detail, the AO recorded the reason that the case of the assessee is reopened as income chargeable to tax because of cash deposit with the bank has escaped the assessment. During the course of assessment proceedings the AO came to know that source of cash deposit in the bank account of the assessee is arising out of the sale of an agricultural land. Naturally, when the assessing officer has come to know that the source of cash deposited in the bank account of the assessee is a sale of an agricultural land, AO could not have added the cash deposited in the bank account but the nature of income comprising in such bank deposits. Therefore after examining the facts of the case, ld AO made addition on account of chargeability of long term capital gain on sale of that assets. We do not find any infirmity in the action of the learned assessing officer when the source of the cash deposit in the bank account is found to be the sale of land, which was not offered for capital gain. Therefore there is a live, direct and solid connection – nexus between the reasons for which the case of the assessee is reopened and the addition made by the ld AO .
FULL TEXT OF THE ORDER OF ITAT DELHI
1. These are the two appeals filed by two brothers involving same issue arising out of single transaction of sale of land those are argued together and therefore, are disposed of by this common order.
2. We first take up the appeal in ITA No. 8211/Del/2018 filed by the Mr. Surat Singh against the order of the ld CIT (A), Karnal dated 31.10.2018. The assessee has raised the following grounds of appeal:-
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