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2017 (8) TMI 1129 - AT - Income TaxReopening of assessment - non supply of reason to believe - LTCG - gift of immovable property to daughter - it is argued that, mistakenly instead of gift deed, sale deed was made - claim of exemption u/s 47(iii) - Held that:- The reasons have not been sought by the assessee at assessment stage. After issuance of notice u/s. 148 of the Act, the assessee has filed return of income and participated in assessment proceedings and the assessment has been completed after taking into account the submission of assessee. Had the assessee sought the reasons and had AO denied the same, the matter would have been different. Thus the contentions of the assessee were rightly rejected by the Ld. CIT(A). - Decided against assessee. Computing the long term capital gain - Held that:- The mode of receipt of consideration not mentioned. Since the consideration has not received through cheque, there is no question of it being reflected in the bank account of the daughter. The provisions of section 50C are clearly applicable in this case as it is a case of transfer of property through sale deed at a price lower than the value adopted for stamp duty valuation. Section 47(iii) comes to play only in cases of transfer through gift or will or an irrevocable trust. Transfer in the present case is not through these modes. The transaction has been held to be gift in the hands of the daughter, the transferee, and therefore it should be held so in the case of the assessee also is not tenable because in case of the daughter the consideration as per stamp duty valuation is not taxable as per proviso to section 56(2)(vii). However, the provisions of capital gains taxation and the income from other sources are independent of each other. The income in the hands of the daughter having been held to be exempt, does not absolve the assesee from the capital gain liability. In view of the above, the contention of assessee was rightly been rejected by the Ld. CIT(A), which does not need any interference on my part - Decided against assessee.
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