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2015 (8) TMI 355 - ITAT MUMBAIComputation of capital gain - whether consideration received by the appellant be treated as capital gain and there is charge on the property by Mr. Laxman Pagare before the consideration is received from the sale of property and only actual income received be taxed as capital gain? - whether the assessee could only be charged to tax, on the income that has accrued to her? - Held that:- One basic fact that has been completely ignored by the Revenue authorities, while framing the assessment of the assessee was to ascertain the status of the return and assessments in the case of Mr. Geeta Choksi and Mr. Laxman A. Pagare. We find that the address of Laxman A. Pagare has been mentioned by the Commissioner of Income-tax (Appeals) in his order and which was also supplied to the Assessing Officer, but the Revenue authorities ignored to ascertain his assessment status. We cannot accept the submissions of the Departmental representative that the case be restored to the Assessing Officer to find out the details of assessment in the case of Mr. Laxman A. Pagare and/or Ms. Geeta Choksi. According to us, the Revenue authorities missed the bus long back. We also find from the APB, the assessment status of Ms. Geeta Choksi, recipient of the other 50 per cent. of 60 per cent., whose return of income was accepted by the Assessing Officer and in the subsequent year, on the same facts, assessment was framed under section 143(3) accepting the returned income. Under these factual circumstances, we are of the opinion that the Revenue authorities erred in adding back remaining 20 per cent. to equate the figure of 50 per cent. of gross sale proceeds. Not only, this was factually incorrect, because, the quantum had been the result of a legal document executed between the ladies and Laxman A. Pagare and more than that the other parties declared their share, which was accepted by the Department We, therefore, set aside the order of the Commissioner of Income-tax (Appeals) and direct the Assessing Officer to delete the addition, as made by him and compute the long-term capital gains as declared by the assessee. - Decided in favour of assessee.
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