POONUSAMY LAKSHMI,ERODE vs. ITO, WARD 2(5), ERODE, ERODE

per the Town Survey records. As per sale document, the land sold is situated in Kottuveerampalayam Main Road near Sathyamangalam Bus Stand . The A.O has not accepted the assessee’s explanation merely because, the purchasers have denied that they have not paid more than the registered value at Rs. 3,18,000/-. The land is situated within the municipal limit . We are aware of the ground situation that lands are sold much above the registered value. The date of cash deposited matches with the date of sale transaction. The principles of preponderance of property, human behavior and circumstantial evidence as laid down by the Hon’ble Supreme Court in the case of CIT vs. Durga Prasad More 82 ITR 540 (SC) are to be considered to evaluate the evidences. Assessee has already shown the sales consideration in the return of income and has paid the tax. . We therefore, hold that the A.O and Ld CIT(A) were not justified to reject the assessee’s explanation of cash deposit in bank account. We accordingly, delete the addition made by A.O.

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Order pronounced in the open Court on 5th June, 2024.