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Income from undisclosed Souces

Started by akk, February 29, 2012, 01:39:33 PM

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'A' sold agriculture land for Rs. 30 lacs and deposited the total  sale consideration received in cash in his bank account. The sale agreement was executed for Rs.30 lacs but later on sale deed was got made 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 despite having taken on record the copy of Ikraanma showing sale consideration of Rs.30 lacs. i.e. AO opted for Sale Deed value.

Please advice the legal recourse available to A.

sai prasad

it is assumed that agrl.lands are within the notified limits and capital gain is taxable. Adverting to the issue  it all depends upon facts like what are the activiites or he has no other income other than capital gain.
There is one decision of ITAT wherein the assessee is an old lady and on similar facts, as that of your case,accepted the plea that the entire  sale amount including excess over regd.sale deed is capital gain since she could not have any other source of income.