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2014 (3) TMI 1181 - AT - Income TaxCapital gain on sale of immovable property in terms of the provisions of section 163(1)(c) - assessee was appointed as attorney in respect to the properties on the basis of executed instrument titled as ‘power of attorney’ the assessee executed two sale agreements through which the immovable property owned by Smt. Pamela Colleco was transferred to two independent buyers - whether the assessee can be held as ‘the representative assessee’ in terms of the provisions of section 163(1)? - HELD THAT:- By merely providing the address the assessee cannot absolve himself from his statutory liability of payment of tax arising on the income generated from the transaction of sale of the immovable property. Assessee is a legally ‘appointed power of attorney’ holder in respect to the property owned by a non resident and on the basis of such attorney he has executed the sale agreements and has received consideration and no tax was paid either by the non resident or by the assessee himself. It is also a matter of fact that the revenue authorities on the basis of such power of attorney has registered the sale deeds in favour of the buyers in the revenue records. We have also perused the power of attorney placed in assessee’s paper book and have found that the assessee was appointed as power of attorney holder of Smt. Pamela Colleco in clear terms without any conditions. Thus, after going through all the documents and considering the material available on record, we are of the considered opinion that the power of attorney is valid and on the basis of such attorney the assessee is held as agent of Smt. Pamela Colleco. Therefore, we find no infirmity in the order of ld. CIT(A) in justifying the action of ld. AO in holding the assessee as representative assessee of Smt. Pamella Colleco. Accordingly we hold the assessee as the representative assessee of Smt. Pamela Colleco as provided in section 163 - Decided against revenue.
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