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Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: Sh. A.D. JainDr. B. R. R. Kumar
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of the ld. CIT(A)-1, Gurgaon dated 11.09.2018.
Heard the arguments of both the parties and perused the material available on record.
Sale of Agricultural Land:
The AO made addition on the receipts of sale of agriculture land under the head “long term capital gains” holding that the land sold falls within the municipal limits of Gurgaon. The said land was situated in the village Bajghera as per the Income Tax Authorities. The assessment pertains to Assessment Year 2010- 11. We have gone through the notification of Haryana
Nand Rup Government dated 28.12.2020 wherein the village Bajghera has been incorporated in the area of “Municipal Corporation Gurugram. The said notification is as under:
HARYANA GOVERNMENT URBAN LOCAL BODIES DEPARTMENT
Notification The 28th December, 2020 No. S.O. 59/H.A.16/1994/S.3/2020 – In exercise of the powers conferred by Sub-section (3) of Section 3 of the Haryana Municipal Corporation Act, 1994 (16 of 1994), the Governor of Haryana in consultation with the Municipal Corporation, Gurugram hereby specify the area of Municipal Corporation, Gurugram by altering the limits given below in the schedule, namely:-
SCHEDULE Schedule of boundaries for Municipal Corporation, Gurugram shall be read with the drawing bearing No. MCG/TP/2020/62 dated 01.12.2020 showing thereon the limits marked as point ‘A’ to ‘I’.
Starting from point ‘A’ which is the meeting point of Delhi State southern boundary existing northern Municipal Corporation, Gurugram boundary and the revenue boundary village Bajghera, thence along the southern boundary of Delhi State and the revenue boundary of village Bajghera upto point ‘B’, where it meets existing boundary of Municipal Corporation, Gurugram,
Nand Rup thence towards north along the existing boundary of MCG upto point ‘A’ which is the point of start.
Then again starting from point ‘C’, where the revenue boundary of village Babupur and Delhi State boundary meet the existing MCG boundary, thence towards west along the southern boundary of Delhi State, also the western boundaries of villages Babupur, Dharampur and Daullabad upto point ‘D’ i.e. the junction of the revenue boundaries of villages Budhera and Kherki Majra at the boundary of Delhi State, thence towards south and south-east along the western boundary of the revenue estate of village Dhankut upto the point ‘E’, where it meets boundary of the existing Municipal Corporation, Gurugram, thence towards North along the existing boundary of Municipal Corporation Gurugram, upto point ‘C’, which is the point of start.
Then again starting from point ‘F’, which is tri-junction of revenue boundaries of villages Darbaripur, Hasanpur and Paltra at existing MCG boundary, thence moving along the southern revenue boundary of village Palm upto point ‘G’, where it meets the existing boundary of Municipal Corporation Gurugram, thence along the existing boundary of Municipal Corporation Gurugram upto point ‘F’, which is the point of start.
Then against starting from ‘H’, which is the point of intersection of revenue boundaries of village Bhondsi and Aklimpur at the existing Municipal Corporation Gurugram boundary, thence moving south and south-eastwards along the revenue boundaries of village Bhondsi, Kadarur and Behrampur upto the point ‘I’, where it meets the existing boundary of Municipal
Nand Rup Corporation Gurugram, thence along the existing boundary of Municipal Corporation Gurugram upto point ‘H’, which is the point of start.”
Sd/- S.N. Roy Additional Chief Secretary to Government Haryana, Urban Local Bodies Department
Since, as per the notification, the village Bajghera falls out of the Municipal limits of Gurugram in the instant year before us, when the transactions took place, we hereby hold that no capital gains could be taxed on sale of agricultural land situated in the village outside the municipal limits.
In the result, the appeal of the assessee on this ground is allowed.
Cash Deposits in the Bank:
The bank account no. 55002637121 maintained with State bank of Patiala Bamnoli, Najafgarh Road, Delhi in the name of the assessee. The total deposits (credit) and withdrawal (debit) in the account during the period from 01.04.2009 to 31.03.2010 are Rs.1.95 crores and Rs.1.96 crores respectively as under:
Date Debit Credit 12.09.2009 60000 30.07.2009 200000 31.07.2009 6450000 31.07.2009 500000 08.08.2009 350000 18.08.2009 9500000 23.02.2010 825000 Total 10675000 7150000
Nand Rup 7. The assessee has submitted the source of the same as under:
Rs.56,50,000/- Received in cash from M/s Arena Estates Pvt. Ltd. on account of part payment of asle consideration of 2 kanal, 2 marla, 6 sarsai at Bajghera, Gurgoan Rs.8,00,000/- From home savings Rs.5,00,000/- From FD of Wife Rs.2,00,000/- Personal Savings Rs.71,50,000/-
The AO held that no evidence has been furnished in respect of Rs.2,00,000/-, Rs.5,00,000/- and Rs.8,00,000/- deposited in the bank.
Before us, during the arguments, the ld. AR argued that the assessee had cash of Rs.8,00,000/- out of sale of agricultural produce from the above said land and Rs.2,00,000/- are out of the savings and cash at hand being a pensioner from the Army. It was submitted that Rs.5,00,000/- or the receipts from the encashment of FDs of the wife. The ld. DR supported the orders of the authorities below. Having gone through the entire factum of the issue, we hold that the availability of the cash for depositing in the bank account cannot be disputed. Hence, the appeal of the assessee on this ground is allowed.
Addition u/s 69:
The AO made an addition of Rs.56.5 lacs appearing in the bank account. The assessee submitted two sale deeds dated 30.07.2009 and an agreement to sale dated 10.08.2009 which Nand Rup reflects the receipts of the amounts from M/s Arena Estates Pvt. Ltd. It was also submitted along with the proof of repayment that the amounts have been given back to M/s Arena Estates Pvt. Ltd. Since, the monies have been refunded owing to cancellation of agreement, no addition on this account is called for. In the result, the appeal of the assessee is allowed on this ground.