ITO Vs Rahul Kumar Jain (ITAT Raipur)
ITAT Raipur held that CIT(A) deleted the addition towards unexplained cash under section 68 of the Income Tax Act without proper verification of the facts and evidences and thus the matter restored back to the file of AO for adequate verifications.
Facts- Subsequent to processed u/s 143(1), it is noticed by the revenue that the assessee has sold an urban land and have received the consideration to the turn of Rs. 20,00,000/-, jointly with Shri Raja Vikram. Assessee’s share in the consideration was Rs. 10,00,000/-. It was the belief of the department that since the land sold was an urban land, the sale consideration received by the assessee was to be charged to tax under the head Capital Gains. However, as the assessee was failed to offer the sale consideration for taxation, therefore, AO has formulated the reason to believe that an amount of Rs. 9,00,585/- has escaped assessment. AO made addition of Short Term Capital Gain of Rs. 51,715/-; Long Term Capital Gain of Rs. 7,05,728/- and Unexplained cash Rs. 18,50,000/-.
Appeal of the assessee was allowed by CIT(A) by vacating the additions made by AO. Being aggrieved, the present appeal is filed by the revenue.
