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2014 (12) TMI 290 - AT - Income TaxAddition of undisclosed sale consideration – Held that:- In the registered sale agreement, assessee’s share of sale consideration is 17,05,01,000/- and it is liable to be considered as the consideration accruing to the assessee- The MOUs relied upon by the assessee to justify adoption of a different sale consideration is of no-consequence, especially because neither the MOUs are registered and nor their terms and conditions find a mention in the recital of the registered sale agreement. Moreover, the MOUs envisage distribution of sale proceeds with one Mr. Vicky Shamsunder Bhutada, who is not stated to be a co-owner in the registered sale agreement - there is no credible explanation furnished by the assessee as to the reason for the difference in the shares in the sale consideration noted in the registered sale agreement and the MOUs - the income-tax authorities have appropriately considered the assessee’s share of sale consideration at ₹ 17,05,01,000/- on the basis of the registered sale agreement dated 10.08.2006. The plea of the assessee that the amount be considered to have been paid to the other persons for the services rendered by them for execution of the transaction - the other persons, who have received the differential amount have offered such amount as their incomes and therefore on this count also assessee deserves such a deduction – the plea of the assessee cannot be accepted because the finding of the lower authorities is that the MOUs have been found to be unreliable - There is no material or evidence on record to distract from the finding of the lower authorities. Disallowance on non-existing liability made – Held that:- The alternative plea setup by the assessee to the effect that the amount is be assessed to tax in AY 2010-11 is not justified - the verification exercise carried out by the AO, revealed that there was no legally enforceable liability on the assessee to have paid ₹ 1,05,00,000/- to M/s Manav Developers in the context of the agreement with M/s Manav Promoters Pvt. Ltd. which was cancelled - once, it is found that there was no legal obligation on the part of the assessee to pay such an amount, the consequences have to follow and the amount has been rightly assessed to tax – thus, the order of the CIT(A) is upheld – Decided against assessee.
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