HARPREET KAUR,BHOPAL vs. INCOME-TAX OFFICER, 5(2), BHOPAL, BHOPAL
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आयकरअपीलीयअिधकरण,इंदौरɊायपीठ,इंदौर
IN THE INCOME TAX APPELLATE TRIBUNAL
INDORE BENCH, INDORE
BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER
AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER
Assessment Year:2009-10
Harpreet Kaur,
154, Bharat Nagar,
J K Road,
Bhopal
बनाम/
Vs.
ITO-5(2),
Bhopal
(Assessee/Appellant)
(Revenue/Respondent)
PAN: BMRPK6533N
Assessee by Shri Arpit Gaur, AR
Revenue by Shri Ashish Porwal, Sr. DR
Date of Hearing
23.07.2025
Date of Pronouncement
22.08.2025
आदेश/O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first appeal dated 31.07.2024 passed by learned
Commissioner of Income-Tax
(Appeals)-Addl/JCIT(A),
Thane
[“CIT(A)”] which in turn arises out of assessment-order dated 19.12.2016
passed by learned ITO-5(2), Bhopal [“AO”] u/s 147 r.w.s. 143(3) of Income- tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2009-10, the assessee has filed this appeal.
2. The background facts leading to present appeal are such that the AO, on the basis of AIR information revealing that a cash deposit of Rs.
Harpreet Kaur
ITA No. 730/Ind/2024 – AY 2009-10
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13,21,000/- was made in Bank A/c of assessee during the previous year
2008-09, initiated proceeding of assessment u/s 147 through notice dated
23.03.2016 u/s 148. In response, the assessee filed return declaring a total income of Rs. 1,11,387/- rounded off to Rs. 1,11,390/- (consisting of taxable capital gain of Rs. 44,018/-, bank interest income of Rs. 7,369/- and tuition income of Rs. 60,000/-). The assessee declared taxable capital gain of Rs. 44,018/- from sale of a residential property to the purchaser
“Shri Rajesh Rathore” for Rs. 13,21,000/- on 05.02.2009 after deduction of costs and exemption u/s 54. The AO issued notices u/s 143(2)/142(1) which were complied with by assessee. During proceeding, when the AO asked assessee to explain the source of cash deposit of Rs. 13,21,000/- in bank a/c, the assessee filed a copy of “sale-agreement” dated 20.12.2008
entered with Shri Rajesh Rathore [“Purchaser”] and claimed that the impugned cash deposit was made from the proceeds of sale received from purchaser. However, the AO found that the “registered sale-deed” dated
05.02.2009 executed between assessee and purchaser showed the sale consideration of Rs. 4,10,000/- only. Therefore, due to mis-match, the AO made enquiries from purchaser, once by way of a notice u/s 133(6) and again by way of summon u/s 131. Ultimately, the AO accepted the sale consideration at Rs. 4,10,000/- as per ‘registered sale-deed’ (valuation by stamps authority at Rs. 4,18,000/-) and worked out taxable capital gain at Rs. Nil (Para 3 of assessment-order). At the same time, the AO made working of cash availability with assessee at Rs. 4,60,000/- [by giving credit of the Harpreet Kaur
ITA No. 730/Ind/2024 – AY 2009-10
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sale consideration of Rs. 4,10,000/- shown by registered sale-deed (+) estimated cash of Rs. 30,000/- available with assessee from tuition income after household expenses (+) advance of Rs. 20,000/- received by assessee from purchaser as per sale-agreement] and treated excess cash deposit of Rs.
8,61,000/- [Rs. 13,21,000 (-) Rs. 4,60,000] as unexplained money u/s 69A.
With these adjustments, the AO completed assessment. Aggrieved, the assessee carried matter in first-appeal but did not get any success. Now, the assessee has come in next appeal before us.
3. At first, we deem it fit to re-produce the relevant portion of assessment-order passed by AO for a better understanding of case:
“2. Unexplained cash deposit:
2.1 As per AIR information the assessee has deposited cash to the extent of Rs. 13,21,000/- in her saving bank account maintained with the SBI, Bharat
Nagar. Hence, vide query no. 06 of questionnaire issued u/s 142(1) dated
27/04/16 the assessee was asked to explain the source of such cash deposits alongwith documentary evidences.
2.2 In response to the said query the assessee vide reply dated 17/05/2016
submitted that she has sold a piece of land admeasuring area 1800 Sq. ft bearing Khasra No. 528/1,528/3/1/2/1 Vill. Godermau, Near Reliance office, before Gandhi Nagar Chowk, Patwari Halka no.04, R.I.Div-01, Tehsil Huzoor,
Bhopal. The sale proceeds of this land was received in cash and has been deposited in my saving bank account. Thus the source of the cash deposit is out of the sale proceeds received from the land so sold. She further submitted that out of this sale proceeds she has further purchased a piece of land admeasuring area 1500 Sq. ft on 27/07/09 at the consideration of Rs.
653400/- and made construction of building thereon.
2.3 When computation annexed with the ITR filed dated 24/05/16 was perused, it was found that the assessee has shown in her ITR sale consideration received from the property under consideration at Rs.
13,21,000/- and after indexation it has claimed exemption of Rs.
10,50,000/- u/s 54. For the sake of clarity, the computation shown by the assessee in her ITR is reproduced as under-
Harpreet Kaur
ITA No. 730/Ind/2024 – AY 2009-10
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Long Term Capital Gain (Other than Securities (General)
Residential Property
Sale consideration (Date of Transfer 05/02/09) Rs.1321000/-
Sale Value U/s 50C
Rs. 1321000/-
Full Value of consideration
Rs.1321000/-
Sale Expenses
Rs.25000/-
Net Sale Consideration
Rs. 1296000/-
Acquisition Cost (2004-05) after indexation - Rs. 166583 * 582/480 =
Rs.201982/-
Balance
Rs. 1094018/-
Exemption u/s 54 =
Rs. 10,50,000/-
Net LTCG =
Rs. 44018/-
Total LTCG other than Securities(General)
Income from Capital Gain Rs.44018/-
2.4 However, having gone through the sale deed of the land bearing Khasra
No.528/1,528/3/1/2/1 Vill. Godermau, Near Reliance office, before Gandhi
Nagar Chowk, Patwari Halka no.04, R.I.Div-01, Tehsil Huzoor, Bhopal it was found that the said land has been sold by the assessee to Shri Rajesh
Rathore on 05/02/2009. The sale consideration has been reflected in the sale deed of Rs. 4,10,000/-. However, Market Value of the said land has been revealed at Rs. 4,18,200/-. It has been claimed in the said sale deed that entire sale consideration of Rs. 4,10,000/- has been paid in cash in past and nothing has to be given henceforth. The facts inured from the sale deed was quite contrary to the claim of the assessee that sale consideration amounting to Rs. 13,21,000/- has been received in lieu of the sale of the land under consideration. Hence, vide note sheet entry dated 26/05/2016 the assessee was categorically asked to explain that as per registered deed the property has been sold at Rs. 4.10 lac, its M.V. adopted by the state government authority was found at Rs.4.18 lac but as per your claim you have sold the same at Rs. 13.21 lac, please explain this discrepancy and produce the person to whom the said land was sold, if possible.
In response to the said query, the assessee vide reply dated 01/09/2016
submitted that as per Sec. 50(1) of the 'Act' when a property is sold then its market value or value received as consideration whichever is higher is taken as deemed sale consideration. Accordingly, in lieu of sale of the property as mentioned earlier, I have received a consideration of Rs. 13,21,000/- and has deposited the same in my saving bank account. If the AO has any doubt regarding this transaction, then he may opt to make valuation of the property so sold or information may called from the office of