| Question And Answer | |
|---|---|
| Subject: | Cash paid to builder for acquiring residential flat |
| Category: | Income-Tax |
| Querist: | Sunil Dalal |
| Answered by: | Mr .Ganesh Purohit, Senior Advocate |
| Tags: | cash paid to builder, Residential flat, unexplained investment |
| Date: | August 8, 2024 |
The Assessee paid 3.69 lakhs as cash to builder for acquiring flat. Since he was a salaried employee no balance sheet was prepared while filing return of income. The assessee submitted that the cash was paid out of drawings from the bank and provided bank statement showing the cash withdrawals. However the A O made addition as per provision of section 69 stating it is a clear cut case of unexplained investment. Now the assessee is in appeal against the order.Any guidance or case laws for deletion of the addition.
The cash payment more then Rs20000/- is not permissible under section 269SS explanation (iv) either as advance or payment for purchase of property. This provision is applicable from 01-06-2015.
The contravention entails penalty under section 271D equal to the amount.
This case is to be contested on facts by filing chart of withdrawal from the bank and other cash available with the assessee. It is advised to prepare a cash flow chart of at least three earlier years to substantiate the contention.
There may not be a supporting case law as no question of law is apparently involved in this case.