Case Law Details
Bipinchandra Purshotamdas Patel Vs ITO (ITAT Ahmedabad)
ITAT find that the assessees explanation for source of cash deposits of Rs.6.00 lakhs in his Bank of India account, which is in dispute before us, as being out of his share in the sale of land, jointly owned along with members of his family, is duly and satisfactorily substantiated. The sale deed of the land sold by the family of the assessee, English translated copy of which was placed before us at P.B 2-20, clearly mentions land sold by six persons including the assessee for Rs. 45 lacs and assessee being paid Rs.7,50,000/- in all in two instalments (Rs. 1,50,000 + Rs.6,00,000/-). This transaction took place on 11/05/2009 and the two post dated cheques dated 11/05/2209 & 30/06/2009 respectively were issued from Dena Bank, Bhayander (East) Thane Branch, Mumbai. The assesses brother was also paid same amount by issuing identical post dated cheques. The joint bank account of the assessee and his brother, placed before us at P.B page No.5 on 27/06/22, shows Rs. 12 lacs deposited on 30/06/2009, the narration in the bank statement mentioning “Bhayander East Mumbai”. It is evident from the facts before us that the amount deposited pertained to two cheques of Rs. 6 lacs each received by the brothers on sale of land. The bank statement further reveals withdrawal in cash of Rs. 8 lacs in three transactions of Rs, 4 lacs, Rs.3 lacs and Rs. 1 lac on 01st ,03rd , and 06th July 2009, i.e immediately after deposit of cheque received on sale of land. Considering that out of Rs. 12 lacs deposited , Rs. 6 lacs pertained to assesses share, it is but reasonable to believe that the withdrawal in cash immediately thereafter was to pay off the assesses share in the consideration received. The Rs. 6 lacs deposited in cash in assesses bank account in Bank of India, which is in dispute before us as source of the same being unexplained, we find was primarily deposited from 06th July to 24th July, with Rs.5.35 lacs alone deposited on 24th July. Considering that the assessee had received his share in the land sold of Rs. 6 lacs in cash from his brother before the cash deposit in his account, the source of the cash so deposited can safely be attributed to this consideration received by him.
The entire evidences, as noted above by us reasonably and satisfactorily demonstrating the flow of money to the assessee in cash from the proceeds received of land sold we see no reason to disbelieve the assesses explanation of the source of cash deposit in bank of Rs. 6 lacs being attributable to his share in land sold by family received in cash from his brother. Addition of Rs.6,00,000/-on account of unexplained cash deposits is accordingly directed to be deleted.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
Present appeal has been filed by the assessee against order passed by the ld. Commissioner of Income-Tax(Appeals), Gandhinagar [hereinafter referred to as “Ld.CIT(A) under section 250(6) of the Income Tax Act, 1961 (“the Act” for short) dated 16.11.2018 pertaining to the Asst.Year 2010-11.
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