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Income from Undisclosed Sources - Modified query

Started by akk, April 02, 2012, 03:05:41 PM

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akk

Facts are as under :

'A' sold agriculture land ( situated outside the municipal limits )for Rs. 30 lacs and deposited the total  sale consideration received in cash in his bank account. The sale agreement ie. Ikraarnma was executed for Rs.30 lacs but later on sale deed ( ie registry) was got executed for Rs10 lacs by the buyer.

The date of deposit of cash in the bank account of A correlates with the date of registry i.e. sale deed.

' A ' is having the original copy of sale agreement ie. Ikraarnma in his possession.

The AO of 'A ' made addition in the hands of 'A' for Rs.20 lacs on account of income from undisclosed sources for cash deposited in excess of the registry value despite having taken on record the copy of Ikraanma showing sale consideration of Rs.30 lacs.

Please advice the legal recourse available to A.



satyanveshi

Besides, documents you have produced earlier, if u can get a confirmation from the purchaser also that the actual consideration is Rs. 30 lakhs but not 10 lakhs as mentioned in the sale deed, there is every possibility that u can win the case. Otherwise, it is becoming difficult to convince the government authorities.

vsaiyar

there is a reported Bombay high Court Decision where it was held that the amount of cash deposited has to be treated as capital gains.