DCIT Vs Mukeshbhai Madhavlal Patel (HUF) (ITAT Ahmedabad)
Explained Cash Source: ITAT Deletes ₹1.28 Crore Addition for Demonetisation Deposit; Proof of Land Sale Prevails: ITAT Upholds Deletion of ₹1.28 Cr Unexplained Cash Addition; Demonetisation Deposit Explained: ITAT Confirms Cash from Agricultural Land Sale Not Taxable; Cannot Tax Documented Land Sale Proceeds as Unexplained Cash: ITAT Decision; Land Sale Proceeds Can’t Be Treated as Unexplained Cash – ITAT Ahmedabad Deletes ₹1.28 Cr Addition for Demonetisation Deposits
Revenue challenged the deletion of addition of ₹1.28 crore made u/s 69A on account of cash deposits during the demonetisation period. The HUF had deposited old currency notes claiming that the money represented cash received from sale of ancestral agricultural land.
AO held that Assessee failed to prove the genuineness of land transactions & treated the cash as unexplained money, observing that the explanation was uncorroborated. However, on appeal, CIT(A) verified registered sale deeds, buyer confirmations, & cash flow statements, & found that the consideration had been received in cash before 08.11.2016 & subsequently deposited in bank accounts. Accordingly, the addition was deleted.
Before the Tribunal, Revenue argued that CIT(A) had erred in accepting Assessee’s version without independent verification. Assessee reiterated that the transactions were genuine & fully documented, with sale deeds proving the source of cash.
