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2021 (5) TMI 378 - AT - Income TaxLTCG - gains on sale of transferable development rights (TDR’s) - HELD THAT:- We note that in the transaction between assessee and the buyer for sale of TDR, an amount has been paid to the alleged confirming party. Neither assessee is unable to explain the reason why the amount was payable to the confirming party, nor is there is any evidence that is brought on record as to why it necessary for the confirming party to be the part of the agreement. AO issued notice under section 133 (6) to the buyer of TDR, no response was received. However, merely because the buyer did not respond to the queries raised by the Ld.AO and it cannot be a reason to assume that the said amount is income in the hands of assessee. We are therefore remanding this issue back to the Ld.AO. AO shall carry out all necessary investigation as under - AO shall call upon the alleged confirming party and record statements. Needless to say that assessee shall be granted any opportunity of cross-examining the alleged confirming party. AO shall call upon the buyer to seek information in respect of the transaction and to verify the details in accordance with law. Any other enquiries /investigations, deem fit and proper. Based upon the above the Ld.AO shall consider the issue in accordance with law. Needless to say that proper opportunity of being heard shall be granted to the parties concerned in order to assay ascertained the true nature of the said transaction. We may caution the Ld.AO that income has to be taxed in the hands of the person to whom it belongs. Merely on surmises and conjunctures the sale amount cannot be taxed in the hands of any assessee. With the above direction we remand this issue to the Ld.AO to carry out de novo assessment, and to pass detailed order in accordance with law. Grounds raised by assessee stands allowed for statistical purposes.
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