INCOME TAX OFFICER, ALWAR V. SHRI TRILOK CHAND SAIN, ALWAR

ITA 449/JPR/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6897 (ITAT-JAIPUR)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 05-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR ASHVINI HOSAHANI
• Keywords: Unexplained investment; Sale consideration of property below Jantri Value; Capital asset; Gift; Additional evidence; Fair market value
• Section: 56(2)(vii)(b); 50C; 2(14); 12AA; 68; 69

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,B JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 449/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2014-2015 THE ITO, WARD-2(1), ALWAR. CUKE VS. SHRI TRILOK CHAND SAIN S/O SHRI RAM SWAROOP SAIN, 805, WONDER RESIDENCY, 200FT. ROAD, ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: BPYPS 6036 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT CO NO. 10/JP/2018 (ARISING OUT OF ITA NO. 449/JP/2018) FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2014-15 SHRI TRILOK CHAND SAIN S/O SHRI RAM SWAROOP SAIN, 805, WONDER RESIDENCY, 200FT. ROAD, ALWAR. CUKE VS. THE ITO, WARD-2(1), ALWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: BPYPS 6036 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI P.C. PARWAL (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : DR. ASHVINI HOSAHANI (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 16/10/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 07/01/2019 VKNS'K@ ORDER ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 2 PER: SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A), ALWAR DATED 11.01.2018 FOR THE ASSESSMENT Y EAR 2014-15 AND THE CROSS OBJECTION FILED BY THE ASSESSEE WHEREIN T HE RESPECTIVE GROUNDS OF APPEAL ARE AS UNDER:- ITA NO.449/JP2018 (REVENUES GROUNDS OF APPEAL): 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 1, 51,06,224/- MADE BY THE AO ON ACCOUNT OF DIFFERENCE AMOUNT OF S TAMP DUTY VALUE AND PURCHASE VALUE HOLDING ARBITRARILY VIEW T HAT THE LAND IN QUESTION IS NOT A CAPITAL ASSET AS PER THE PROVISIO NS OF SECTION 2(14) OF THE I.T. ACT, 1961. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, LD.CIT(A) HAS ERRED IN REDUCING THE ADDITION FROM 2 3,00,000/- TO RS. 8,41,000/- MADE BY AO WITHOUT APPRECIATING THE MATERIAL FACTS OF THE CASE. CO NO. 10/JP/2018 (ASSESSEES GROUNDS OF APPEAL): 1. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADDITION OF RS. 8,41,000/- BY TREATING THE SOURCE F OR PURCHASE OF LAND TO THIS EXTENT AS UNEXPLAINED. 2. THE LD. CIT(A) HAS CORRECTLY HELD THAT THE AGRIC ULTURAL LAND PURCHASED BY ASSESSEE DURING THE YEAR IS NOT A CAPITAL ASSET AS PER SECTION 56(2)(VIIB) BOTH ON ACCOUNT OF THE FACT THAT IT IS A RURAL AGRICULTURAL LAND ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 3 AND OTHERWISE IT IS STOCK-IN-TRADE OF THE ASSESSEE AND THEREFORE, RIGHTLY DELETING THE ADDITION MADE BY AO UNDER THIS SECTION . 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE HAS PURCHASED THREE PLOTS OF LAND DURING THE YEAR UNDER CONSIDERA TION AND HAS CLAIMED THAT THESE PLOTS OF LAND ARE AGRICULTURAL LAND AND DOESNT FALL IN THE DEFINITION OF CAPITAL ASSET AS PER THE PROVISIONS O F SECTION 2(14) OF THE ACT. THE AO, HOWEVER INVOKED THE PROVISIONS OF SECT ION 56(2)(VIIB) OF THE ACT AND MADE AN ADDITION OF RS. 1,74,06,224/- WHICH INCLUDES AN AMOUNT OF RS. 1,51,06,224/- BEING DIFFERENCE BETWEE N THE SALE CONSIDERATION AS PER THE SALE DEEDS AND THE STAMP V ALUATION DETERMINED BY THE STAMP VALUATION AUTHORITY, AND RS. 23 LACS A S UNEXPLAINED INVESTMENT IN PURCHASE OF THESE PROPERTIES. THE AO HOWEVER, ACCEPTED THE SOURCE OF EXPENSES INCURRED ON ACCOUNT OF STAM P DUTY AND OTHER TRANSFER CHARGES AMOUNTING TO RS. 9,38,600/-. 3. ON APPEAL BY THE ASSESSEE, THE LD. CIT(A) HAS HE LD THAT THE LAND IN QUESTION BEING AN AGRICULTURAL LAND IS NOT A CAP ITAL ASSET AS PER THE PROVISIONS OF SECTION 2(14) OF THE ACT AND THEREFOR E, NOT BEING A CAPITAL ASSET, THE TRANSACTION DOES NOT ATTRACT THE PROVISI ONS OF SECTION 56(2)(VIIB) OF THE ACT. FURTHER, THE LD. CIT(A) HAS HELD THAT THE ASSESSEE IN THE BUSINESS OF SALE/PURCHASE OF PROPERTY AND TH E LAND SO PURCHASED IS HIS STOCK-IN-TRADE AND SINCE THE STOCK-IN-TRADE IS ALSO EXCLUDED FROM THE DEFINITION OF CAPITAL ASSET, ON THIS ACCOUNT A S WELL, THE PROVISIONS OF SECTION 56(2)(VIIB) OF THE ACT ARE NOT ATTRACTED. A CCORDINGLY, HE DELETED THE ADDITION OF RS. 1,51,06,224/- IN THE HANDS OF T HE ASSESSEE AND GRANTED THE NECESSARY RELIEF. HE HOWEVER REDUCED TH E ADDITION FROM ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 4 23,00,000/-TO RS. 8,41,000/- MADE BY AO AS UNEXPLAI NED INVESTMENT IN PURCHASE OF THESE PROPERTIES. NOW, THE REVENUE IS IN APPEAL AGAINST THE DELETION OF ADDITION MADE BY THE AO AND THE ASS ESSEE IS IN APPEAL AGAINST THE ADDITION SO CONFIRMED BY THE LD CIT(A). 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE RELEVANT PROVISIONS OF SEC TION 56(2)(VII)(B) WHICH ARE UNDER CONSIDERATION READ AS UNDER: ' (VII) WHERE AN INDIVIDUAL OR A HINDU UNDIVIDED FAMILY REC EIVES, IN ANY PREVIOUS YEAR, FROM ANY PERSON OR PERSONS ON OR AFT ER THE 1ST DAY OF OCTOBER, 2009 BUT BEFORE THE 1ST DAY OF APRI L, 2017, (A) ANY SUM OF MONEY, WITHOU T CONSIDERATION, THE AGGREGATE VALUE OF WHICH EXCEEDS FIFTY THOUSAND RUPEES, THE W HOLE OF THE AGGREGATE VALUE OF SUCH SUM; (B) ANY IMMOVABLE PROPERTY, (I) WITHOUT CONSIDERATION, THE STAMP DUTY VALUE OF WHICH EXCEEDS FIFTY THOUSAND RUPEES, THE STA MP DUTY VALUE OF SUCH PROPERTY; (II) FOR A CONSIDERATION WHICH IS LESS THAN THE STAMP DUTY VALUE OF THE PROPERTY BY AN AMOUNT EXCEEDING FIFTY THOUSAND RUPEES, THE STAMP DUTY VALUE OF SUCH PROPERTY AS EXCEEDS SUCH CONSIDERATION: ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 5 PROVIDED THAT WHERE THE DATE OF THE AGREEMENT FIXING THE AMOUNT OF CONSIDERATION FOR THE TRANSFER OF IMMOVAB LE PROPERTY AND THE DATE OF REGISTRATION ARE NOT THE S AME, THE STAMP DUTY VALUE ON THE DATE OF THE AGREEMENT MAY B E TAKEN FOR THE PURPOSES OF THIS SUB-CLAUSE: PROV IDED FURTHER THAT THE SAID PROVISO SHALL APPLY ONLY IN A CASE WHERE THE AMOUNT OF CONSIDERATION REFERRED TO THEREIN, OR A PART THEREOF, HAS BEEN PAID BY ANY MO DE OTHER THAN CASH ON OR BEFORE THE DATE OF THE AGREEM ENT FOR THE TRANSFER OF SUCH IMMOVABLE PROPERTY; (C) ANY PROPERTY, OTHER THAN IMMOVABLE PROPERTY, (I) WITHOUT CONSIDERATION, THE AGGREGATE FAIR MARKET VALUE OF WHICH EXCEEDS FIFTY THOUSAND RUPEES, THE WHOLE OF THE AGGREGATE FAIR MARKET VALUE OF SUCH PROPERTY; (II) FOR A CONSIDERATION WHICH IS LESS THAN THE AGGREGATE FAIR MARKET VALUE OF THE PROPERTY BY AN AMOUNT EXCEEDING FIFTY THOUSAND RUPEES, THE AGGREGATE FAIR MARKET VALUE OF SUCH PROPERTY AS EXCEEDS SUCH CONSIDERATION : PROVIDED THAT WHERE THE STAMP DUTY VALUE OF IMMOVAB LE PRO PERTY AS REFERRED TO IN SUB- CLAUSE (B) IS DISPUTED BY THE ASSESSEE ON GROUNDS MENTIONED IN SUB-SECTION (2) OF SECTION 50C , THE ASSESSING OFFICER MAY REFER THE VA LUATION OF SUCH PROPERTY TO A ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 6 VALUATION OFFICER, AND THE PROVISIONS OF SECTION 50 C AND SUB - SECTION (15) OF SECTION 155 SHALL, AS FAR AS MAY BE, APPLY IN RELATION TO THE STAMP DUTY VALUE OF SUCH PROPERTY F OR THE PURPOSE OF SUB- CLAUSE (B) AS THEY APPLY FOR VALUATION OF CAPITAL A SSET UNDER THOSE SECTIONS : PROVIDED FURT HER THAT THIS CLAUSE SHALL NOT APPLY TO ANY SUM OF MONEY OR ANY PROPERTY RECEIVED (A) FROM ANY RELATIVE; OR (B) ON THE OCCASION OF THE MARRIAGE OF THE INDIVIDUAL; OR (C) UNDER A WILL OR BY WAY OF INHERITANCE; OR (D) IN CONTEMPLATION OF DE ATH OF THE PAYER OR DONOR, AS THE CASE MAY BE; OR (E) FROM ANY LOCAL AUTHORITY AS DEFINED IN THE EXPLANAT ION TO CLAUSE (20) OF SECTION 10; OR (F) FROM AN Y FUND OR FOUNDATION OR UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION OR HOSPITAL OR OTHER MEDICA L INSTITUTION OR ANY TRUST OR INSTITUTION REFERRED TO IN CLAUSE (23C) OF SECTION 10; OR (G) FROM ANY TRUST OR INSTITUTION REGISTERED UNDER SECT ION 12AA ; OR (H) BY WAY OF TRANSACTION NOT REGARDED AS TRANSFER UNDE R CLAUSE (VICB) OR CLAUSE (VID) OR CLAUSE (VII) OF SE CTION 47. EXPLANATION.FOR THE PURPOSES OF THIS CLAUSE, ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 7 (A) 'ASSESSABLE' SHALL HAVE THE MEANING ASSIGNED TO IT IN THE EXPLANATION 2 TO SUB-SECTION (2) OF SECTION 50C; (B) 'FAIR MARKET VALUE' OF A PROPERTY, OTHER THAN AN IM MOVABLE PROPERTY, MEANS THE VALUE DETER MINED IN ACCORDANCE WITH THE METHOD AS MAY BE PRESCRIBED; (C) 'JEWELLERY' SHALL HAVE THE MEANING ASSIGNED TO IT I N THE EXPLANATION TO SUB-CLAUSE (II) OF CLAUSE (14) OF SE CTION 2; (D) 'PROPERTY' MEANS THE FOLLOWING CAPITAL ASSET OF THE ASSESSEE, NAMELY: (I) IMMOVABLE PROPERTY BEING LAND OR BUILDING OR BOTH; (II) SHARES AND SECURITIES; (III) JEWELLERY; (IV) ARCHAEOLOGICAL COLLECTIONS; (V) DRAWINGS; (VI) PAINTINGS; (VII) SCULPTURES; (VIII) ANY WORK OF ART; OR (IX) BULLION; (E) 'RELATIVE' MEANS, (I) IN CASE OF AN INDIVIDUAL ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 8 (A) SPOUSE OF THE INDIVIDUAL; (B) BROTHER OR SISTER OF THE INDIVIDUAL; (C) BROTHER OR SISTER OF THE SPOUSE OF THE INDIVIDUAL; (D) BROTHER OR SISTER OF EITHER OF THE PARENTS OF THE INDIVIDUAL; (E) ANY LINEAL ASCENDANT OR DESCENDANT OF THE INDIVIDUAL; (F) ANY LINEAL ASCENDANT OR DESCENDANT OF THE SPOUSE OF THE INDIVIDUAL; (G) SPOUSE OF THE PERSON REFERRED TO IN ITEMS (B) TO (F); AND (II) IN CASE OF A HINDU UNDIVIDED FAMILY, ANY MEMBER THEREOF;] (F) 'STAMP DUTY VALUE' MEANS THE VALUE ADOPTED OR ASSES SED OR ASSESSABLE BY ANY AUTHORITY OF THE CENTRAL GOVER NMEN T OR A STATE GOVERNMENT FOR THE PURPOSE OF PAYMENT OF STAMP DUTY IN RESPECT OF AN IMMOVABLE PROPERTY; 5. THE ABOVE PROVISIONS THUS PROVIDES THAT WHERE AN INDIVIDUAL RECEIVES IN ANY PREVIOUS YEAR, FROM ANY PERSON OR P ERSONS ON OR AFTER THE 1ST DAY OF OCTOBER, 2009 BUT BEFORE THE 1ST DAY OF APRIL, 2017, ANY IMMOVEABLE PROPERTY FOR A CONSIDERATION WHICH IS LE SS THAN THE STAMP ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 9 DUTY VALUE OF THE PROPERTY BY AN AMOUNT EXCEEDING F IFTY THOUSAND RUPEES, THE STAMP DUTY VALUE OF SUCH PROPERTY AS EX CEEDS SUCH CONSIDERATION SHALL BE INCOME CHARGEABLE TO TAX UND ER THE HEAD INCOME FROM OTHER SOURCES. 6. IN THE INSTANT CASE, THE ASSESSEE HAS PURCHASED THREE PLOTS OF LAND DURING THE YEAR UNDER CONSIDERATION. THE SALE CONSIDERATION AS PER THE RESPECTIVE SALE DEEDS AMOUNTS TO RS 23,00,000 A ND THE STAMP DUTY VALUE OF SUCH PROPERTIES AS DETERMINED BY THE STAMP DUTY AUTHORITY AMOUNTS TO RS 1,74,06,224/- AND THEREFORE, THERE IS DIFFERENCE TO THE TUNE OF RS 1,51,06,224/- BETWEEN THE SALE CONSIDER ATION AS PER THE SALE DEEDS AND THE STAMP VALUATION DETERMINED BY TH E STAMP VALUATION AUTHORITY. TO THIS EXTENT, THE FACTS ARE NOT DISPUT ED AND HAVE BEEN ACCEPTED BY BOTH THE PARTIES. THE LIMITED POINT OF DISPUTE IS THE NATURE OF IMMOVEABLE PROPERTY WHICH HAS BEEN PURCHASED BY THE ASSESSEE. THE ASSESSEES CONTENTION IS THAT WHICH HE HAS PURC HASED ARE THREE PLOTS OF AGRICULTURAL LAND AND THE SAME DOESNT FAL L IN THE DEFINITION OF CAPITAL ASSET AS PER THE PROVISIONS OF SECTION 2(14 ) OF THE ACT AND PROVISIONS OF SECTION 56(2)(VII)(B) CANNOT BE INVOK ED. THE REVENUES CONTENTION IS THAT THE PROVISIONS OF SECTION 56(2)( VII)(B) TALKS ABOUT ANY IMMOVEABLE PROPERTY AND THUS EVEN AN AGRICULTURE LA ND FALLS UNDER THE DEFINITION OF AN IMMOVEABLE PROPERTY AND THE PROVIS IONS OF SECTION 56(2)(VII)(B) ARE CLEARLY ATTRACTED. ON READING OF PROVISIONS OF 56(2)(VII)(B), WE FIND THAT IT REFERS TO ANY IMMOVE ABLE PROPERTY AND THE SAME IS NOT CIRCUMSCRIBED OR LIMITED TO ANY PARTICU LAR NATURE OF IMMOVEABLE PROPERTY. IT REFERS TO ANY IMMOVEABLE PR OPERTY WHICH BY ITS GRAMMATICAL MEANING WOULD MEAN ALL AND ANY PROPERTY WHICH IS ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 10 IMMOVEABLE IN NATURE, I.E, ATTACHED TO OR FORMING P ART OF EARTH SURFACE. IN THE INSTANT CASE, THE ASSESSEE HAS PURCHASES THR EE PLOTS OF AGRICULTURAL LAND AND SUCH AGRICULTURAL LAND IS CLE ARLY AN IMMOVEABLE PROPERTY. WHETHER SUCH AGRICULTURE LAND FALLS IN T HE DEFINITION OF CAPITAL ASSET U/S 2(14) OR WHETHER SUCH AGRICULTURE LAND IS STOCK-IN-TRADE OF THE ASSESSEE, IN OUR CONSIDERED VIEW, ARE ISSUES WHICH CANNOT BE READ IN THE DEFINITION OF ANY IMMOVEABLE PROPERTY USED IN CONTEXT OF SECTION SECTION 56(2)(VII)(B) AND ARE THUS NOT RELEVANT. I N THE RESULT, WE SET- ASIDE THE ORDER OF THE LD CIT(A) TO THIS EXTENT AND UPHELD THE ORDER OF THE ASSESSING OFFICER. IN THE RESULT, GROUND NO. 1 OF THE REVENUES APPEAL IS ALLOWED. 7. REGARDING THE ADDITION OF RS. 23 LACS ON ACCOUNT OF UNEXPLAINED INVESTMENT IN PURCHASE OF THREE PROPERTIES, WE HAVE GONE THROUGH THE FINDINGS OF THE AO AND THE LD CIT(A) AND OTHER MATE RIAL AVAILABLE ON RECORD. WE HEREBY AFFIRM THE FOLLOWING FINDINGS OF THE LD. CIT(A) WHICH ARE CONTAINED AT PARA 6.4 AND 6.5 OF HIS ORDER REPR ODUCED AS UNDER:- 6.4 THE ADDITION OF RS.23 LAKHS HAVE BEEN MADE ON THE UNEXPLAINED INVESTMENT IN THE PURCHASE OF THE ABOVE MENTIONED L ANDS AS PER DETAILS BELOW: I. PURCHASED A LAND ON 08/01/2014 AT VILL: CHANDBA AS, CHIRKHANA TEHSIL: BAHADARPUR, DISTT: ALWAR FROM SH. SAHABUDDI N FOR A CASH CONSIDERATION OF RS. 8 LAKHS. HOWEVER, STAMP VALUAT ION AUTHORITY HAS VALUED THE LAND AT RS.72,14,000/- FOR STAMP DUTY PU RPOSE. STAMP DUTY AND TRANSFER CHARGES PAID BY THE APPELLANT WAS RS.4 ,27,000/-. ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 11 II. PURCHASED A LAND ON 10/02/2014 IN THE SAME VILL AGE AS MENTIONED ABOVE FROM SH. JAKAMDIN FOR A CONSIDERATION OF RS.8 LAKHS BUT STAMP VALUATION AUTHORITY HAS VALUED THE LAND AT RS.57,71 ,000/- FOR STAMP DUTY PURPOSE. STAMP DUTY AND TRANSFER CHARGES PAID BY THE APPELLANT WAS RS. 3,69,300/-. III. PURCHASED A LAND ON 06/02/2014 IN THE SAME VIL LAGE AS MENTIONED ABOVE FROM SH. IMRAT FOR A CONSIDERATION OF RS.7 LA KHS BUT STAMP VALUATION AUTHORITY HAS VALUED THE LAND AT RS.44,21 ,224/- FOR STAMP DUTY PURPOSE. STAMP DUTY AND TRANSFER CHARGES PAID BY THE APPELLANT WAS RS. 1,17,230/-. IN THE ASSESSMENT ORDER THE A.O. HAD ACCEPTED THE S OURCE OF EXPENSES INCURRED ON ACCOUNT OF STAMP DUTY AND OTHER TRANSFE R CHARGES AMOUNTING TO RS. 9,38,600/-. HOWEVER, THE PURCHASE CONSIDERATION AMOUNTING TO RS. 23 LAKHS HAVE BEEN ADDED AS UNEXPL AINED INVESTMENT U/S 68 OF THE ACT. DURING APPELLATE PROCEEDINGS, TH E APPELLANT HAS FILED ADDITIONAL EVIDENCES IN SUPPORT OF ITS CLAIM UNDER RULE 46A OF THE IT RULES, 1962. FOR THE REASONS MENTIONED THEREIN THE SAME HAS BEEN TAKEN ON RECORD AND THE ADDITIONAL EVIDENCES WERE S ENT TO A.O FOR HIS EXAMINATION AND COMMENTS. THE A.O HAS SUBMITTED THE REMAND REPORT VIDE LETTER DATED: 09/10/2017. THE COPY OF THE REMA ND REPORT WAS FORWARDED TO THE APPELLANT FOR HIS CROSS REPLY. THE APPELLANT HAS FILED THE CROSS REPLY VIDE LETTER DATED: 26/12/2017. 6.5 I HAVE CONSIDERED THE REMAND REPORT AND THE CR OSS REPLY SUBMITTED BY THE APPELLANT. IT IS SEEN THAT FOLLOWING PERSONS HAVE ATTENDED THE ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 12 REMAND PROCEEDINGS AND CONFIRMED THEIR TRANSACTIONS WITH THE APPELLANT: S.N. NAME OF THE PERSON DATED OF ATTENDENCE TRANSACTION(ADVANCE/GIFT)AM OUNT SMT. UGANTI DEVI(MOTHER OF THE ASSESSEE), DAUSA 01.08.2017 1,00,000/- (GIFT) SH.RAM SWAROOP SAIN (FAT HER OF THE ASSESSEE, DAUSA. 01.08.2017 10,50,000/- (GIFT) SH.SHYAM LAL BISARIYA, ALWAR 01.08.2017 50,000/- (ADVANCE) SH.BHARAT LAL SAIN, 03.08.2017 50,000/- (ADVANCE) SMT. SEEMA SAIN (WIFE OF THE ASSESSEE), ALWAR 11.08.2017 1,00,000/- (GIFT) SH. TRILOK CHAND SAIN(ASSESSEE) 11.08.201 TO 14.08.2017 -- SMT. SARLA W/O INDRA LAL, ALWAR 21.08.2017 40,000/-(ADVANCE) . SH.RAMU JATAV, ALWAR 21.08.2017 1,00,000/- (ADVANCE) HUKAM CHAND, ALWAR 21.08.2017 50,000/ - (ADVANCE) AS PER THE CHART ABOVE THE SOURCE OF RS. 15,40,000 /- HAVE BEEN REASONABLY EXPLAINED. I HAVE ALSO TAKEN INTO CONSID ERATION THAT SOME OF THE PERSONS FROM WHOM THE APPELLANT HAS CLAIMED ADV ANCES HAVE EITHER NOT ATTENDED TO THE REMAND PROCEEDINGS OR THEIR ADD RESSES WERE INCOMPLETE. ONE OF SUCH PERSON SH. YOGESH SHARMA FR OM WHOM THE APPELLANT HAS CLAIMED TO HAVE GOT ADVANCE OF RS.1,5 0,000/- HAS DENIED THE TRANSACTION. ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 13 THE APPELLANT HAS ALSO DECLARED AN INCOME OF RS.5,7 7,600/- IN THE RETURN OF INCOME BESIDES A CAR SOLD BY HIM FOR A CO NSIDERATION OF RS.3,80,000/-AND THE APPELLANT HAS CLAIMED TO HAVE USED THE MONEY FOR THE PURCHASE OF THE LAND. AFTER TAKING INTO CONSIDERATION ALL THE ABOVE MENTI ONED FACTS, A TOTAL OF RS. 24,97,600/- WAS AVAILABLE WITH THE APPELLANT FR OM THE EXPLAINED SOURCES. THE TOTAL INVESTMENT IN THE LAND INCLUDING STAMP DUTY AND OTHER TRANSFER CHARGES COMES TO RS. 32,38,600/-. CO NSIDERING A REASONABLE HOUSEHOLD EXPENDITURE OF RS. 1 LAKH, IT IS REASONABLE TO INFER THAT INVESTMENT TO THE EXTENT OF RS. 23,97,600/- IS EXPLAINED. THEREFORE, THE BALANCE INVESTMENT OF RS. 8,41,000/- REMAIN UNE XPLAINED AND LIABLE TO BE TAXED U/S 69 OF THE ACT. ACCORDINGLY, THE ADD ITION ON THIS ACCOUNT IS REDUCED TO RS. 8,41,000/-. APPELLANTS GROUND OF APPEAL ON THIS ISSUE IS PARTLY ALLOWED. 8. IN THE RESULT, GROUND NO. 2 OF THE REVENUES AP PEAL AND GROUND NO. 1 OF THE ASSESSEES CROSS OBJECTION ARE DISMISS ED. IN THE RESULT, THE APPEAL OF THE REVENUE AND CROSS OBJECTION OF THE ASSESSEE ARE DISPOSED OFF WITH ABOVE DIRECTIONS . ORDER PRONOUNCED IN THE OPEN COURT ON 07/01/2019. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 07/01/2019. ITA NO. 449JP/2018 & CO NO. 10/JP/2018 ITO VS. SHRI TRILOK CHAND SAIN 14 * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- ITO, WARD-2(1), ALWAR. 2. IZR;FKHZ@ THE RESPONDENT- SHRI TRILOK CHAND SAIN, ALWAR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. ITA NO. 449/JP/2018 & CO NO. 10/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR