Year of investment

If the cheque details are mentioned in registered sale deed, the same is sufficient explanation.

The AO has acted arbitrarily on whims and fancy.  You have strong ground in appeal on facts itself. Even otherwise, AO cannot merely allege payment in cash without evidence.

Query:  I had purchased a plot for Rs 500000/-by way of a registered sale deed on 27.3.2008. The sale consideration of this plot was given to purchaser by way of a single cheque of Rs 500000/-  dt 27.7.2008 & it is mentioned in the sale deed. The cheque was encashed on 30.7.2008. Assesing officer has added Rs 500000/- in my income, as investment from undisclosed sources in Assesment year 2008-09. I had pleaded that  the Cheque had been encashed in AY 2009-10 through my known bank accounts but AO cited that it is a cooked up story & no prudent seller will transfer risghts or execute Sale deed without receiving full amount and I must have paid Seller the amount of Rs 500000/- in cash at the time of execution of Sale deed. Pl advice me any case law wherein it is held that investment can be added only in the year during which actual amount has been transfered. Or any other point to appeal before CIT ( appeal) 

Reply: The AO's view is based on mere surmises and conjectures, and overlooks the concrete evidence available. You have a good case for an appeal. No case law is required.