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2014 (12) TMI 71 - AT - Income TaxAssessability of transaction in respect of sale of lands – Co-owner of the land – Assessee or M/s Viraj Estates Pvt. Ltd. liable to be taxed – Whether the income arising as a result of the Development Agreement dated 30.12.2003 executed by assessee and two others with Shri Rajesh Patharkar is liable to be assessed in the hands of the assessee or not - Held that:- The CIT(A) correctly came to conclude that the sale of land was assessable in the hands of the M/s Viraj Estates Pvt. Ltd. and not in the hands of the assessee - CIT(A) rightly accepted the plea of the assessee that the transaction does not belong to the assessee inasmuch as the land has been purchased and sold for and on behalf of VEPL, having regard to the facts and circumstances of the case - the sale-deeds showed that payments for acquisition of land were made by VEPL through their bank accounts - payments have been recorded in the books of account of M/s VEPL - in the Balance-Sheet of VEPL, the transaction has been reflected as advances against purchase of land - purchase of land by the assessee and two other co-owners is for and on behalf of the VEPL – the land was purchased and sold by the assessee and two other co-owners for and on behalf of VEPL - Therefore, the income was not liable to be assessed in the hands of the assessee – thus, the order of the CIT(A) is upheld – Decided against revenue.
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