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2017 (4) TMI 180 - HC - Income TaxAddition on account of short-term capital gains - ownership of land - whether only for convenience the land was purchased in the name of the director otherwise it has been accounted for by the company? - Held that:- The sale deed was executed by the assessee in respect of Khasra No. 6/1 and 6/4 at village Basda Alias for and on behalf of M/s. Grass Field Farms and Resorts Pvt. Ltd. and the said amount was shown as stock in the books of M/s. Grass Field Farms and Resorts Pvt. Ltd. as on March 31, 2008 and not only this, the limited company had also made a surrender in the survey conducted on February 28, 2008 and the sale proceeds of the said land at ₹ 1,51,80,000 is duly recorded in the books of account of the company and business profit has been offered to tax in the case of the company. On perusal of the material available on record, it is also noticed that the limited company, namely, M/s. Grass Field Farms and Resorts Pvt. Ltd. sold this land to another limited company namely; Grass Field Fire Capital Developers Private Limited on August 5, 2008 for ₹ 1,51,80,000 where also the assessee executed sale deed as an agent for and on behalf of M/s. Grass Field Farms and Resorts Pvt. Ltd. and even the Commissioner of Income-tax (Appeals) and the Tribunal have found that the sale amount is duly recorded in the books of M/s. Grass Field Farms and Resorts Pvt. Ltd. It is also a fact that even a certificate of the company was placed on record confirming ownership of the land before the Assessing Officer himself. There can be no two owners and in the instant case, from the material placed by the assessee and considered by both the appellate authorities, it clearly proves that the assessee being a director executed title deeds for and on behalf of M/s. Grass Field Farms and Resorts Pvt. Ltd. and the beneficial owner for all practical purposes was the limited company which had even paid due taxes later on at the time when the property was sold. - Decided in favour of assessee.
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