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2020 (12) TMI 79 - AT - Income TaxCapital gains on sale of property - invoking 50C of the Act for year under consideration and computing capital gains by taking guidance value for year under consideration - AO reworked LTCG based on the guidance value in the year of sale being 04/10/2004 as assessee has shown sale proceeds of sale of property, which is much lesser than, guidance value, and accordingly as per provisions of section 50C - HELD THAT:- In the present case, at the time of registration in the year 2004, assessee was represented by the original purchase through general power of attorney executed by assessee in 1993 - at the time of registering the sale deed the said property stands transferred in the name of another person who is submitted to be the brother of Director in the company being original purchaser. The recitals in the registered sale agreement placed at page 94-104 mentions details of the sale consideration having received by assessee under Memorandum of Agreement of Transfer and Assignment entered into on 17/03/1993 between assessee and the company. Provisions of section 50C has been inserted in the form of clarification to the section and accordingly is retrospectively applicable. In our view provisions of section 50C should be looked into from the date of Memorandum of Agreement of Transfer and Assignment entered into by assessee with M/s Shantha Exports Pvt.Ltd through its Director. Nothing has been placed on record to show why the subsequent sale has been registered in the name of an individual who is alleged to be the brother of the Director of M/s Shantha Exports Pvt Ltd. It also has been recorded by Ld.CIT(A) that assessee did not disclose the capital gain - Nothing has been brought to record how the loss if any is allowable during the year under consideration. We therefore set aside the issue back to the file of Ld.AO to consider it de novo in the light of various evidences filed by assessee. Assessee is directed to establish all relevant links and reply to queries raised by Ld.AO in order to complete the assessment in accordance with law - Decided in favour of assessee for statistical purposes.
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