Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 841 - AT - Income TaxUnexplained investment in the property - difference between the stated consideration and the value determined by the stamp duty valuation - Held that:- Assessee has appropriately explained the reasons for the difference between the stated consideration and the value determined by the stamp duty valuation authority and/or the report of the DVO. The assessee had explained before the CIT(A) that the premises were acquired on the basis of a price negotiated in September, 2007 and that he had paid almost 70% of the total consideration in September & October 2007 itself knowing fully that the premises would be available for occupation only after a period of 3 ½ years to 4 years. The second aspect canvassed by the assessee was the increase in the stamp duty Ready Reckoner rates in 2008 visa- vis the rates in 2007. The facts and figures, in this regard have been reproduced in the order of the CIT(A) which clearly establish that the stamp duty ready recknor rate in 2008 were almost 53.5% higher than those in 2007. All the aforesaid explanations furnished by the assessee to show that the purchase consideration paid was justified, has not been controverted or found to be false by the income tax authorities. Therefore, in the absence of any repudiation of the explanation furnished by the assessee, we are satisfied that the difference in the stated consideration paid vis-à-vis market value in March, 2008 is quite justified and is certainly not reflective of payment of any consideration by the assessee over and above the stated consideration. Thus direct the AO to delete the entire addition made on account of unexplained investment in the property. - Decided in favour of assessee. Sale of shares and securities - Long Term Capital Gain as well as Short Term Capital Gains V/S business income - Held that:- In the present case, the pertinent facts are that the assessee was employed with Larsen & Toubro Ltd. for 41 years and retired in the year 2001 as the President of the company. In the years 1999 and 2000, assessee was offered stock options which resulted in his getting 41000 equity shares of the said concern in 2004 and after the bonus issue in the year 2006-07, the total share holding increased to 82000 shares. Out of this holding, a small quantity of 6895 shares were sold by the assessee which has resulted in a long term capital gain of ₹ 2,61,39,275/-, out of the total long term capital gain of ₹ 3,85,55,838/-. The balance of the long term capital gain has also resulted out of the shares which have been held since 2004 and 2005 and it is also brought out that assessee has sold shares of only eight companies, which has resulted in the long term capital gain. The aforesaid factual background does not inspire any confidence in the plea of the Revenue that the assessee transacted in shares as a trader. It is also notable that assessee had canvassed before the lower authorites that no borrowed funds have been used for making the investment in shares. Thus no error on the part of the CIT(A) in holding that the long term as well as the short term capital gains earned by the assessee are not to be assessed as business income. - Decided against revenue.
|