Case Law Details
Brijesh Sharma Vs DCIT (ITAT Jaipur)
During the Assessment assessee submitted to the AO vide letter dated 12.11.2014 that the assessee had purchased a plot of land situated in Jaipur for disclosed consideration of Rs. 5,21,000/- which was paid by cheque. The AO issued summon u/s 131(2) the seller, Smt. Choti Devi. In her statement recorded on oath u/s 131 before AO on 07.01.2015, she stated that the said plot was sold by her to the assessee for a consideration of Rs. 12,21,000/- out of which, Rs. 5,21,000/- was received through cheque and Rs. 7,00,000/- through cash.
The cash amount of Rs. 7,00,000/- was found credited in the bank account of Smt. Choti Devi on 01.10.2011. The copy of statement of the seller was provided to the assessee. In response, the assessee admitted to have made total payment of Rs. 12,21,000/- including cash of Rs. 7,00,000/-.
The assessee explained that a dispute arose with the seller after the agreement and cash of Rs. 7,00,000/- was paid in settlement as the seller was not ready to handover the physical possession of the plot. The assessee submitted copy of relevant agreement dated 11.01.2012 to the AO.
The AO observed that the agreement was executed between the appellant and Smt. Choti Devi on 11.01.2012 which showed consideration of Rs. 5,21,000/- being paid by cheque dated 13.01.2012. However, the cash deposit in the bank account of Smt. Choti Devi was made on 01.10.2021. In her statement recorded 131, Smt. Choti Devi had confirmed that the said cash was given by Shri Brijesh Sharma on 01.10.2011.
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