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2018 (1) TMI 1230 - AT - Income TaxRevision u/s 263 - capital gains tax liability on sale of land - Held that:- A perusal of the show cause notice clearly shows that the Principal CIT has not appreciated the facts of the case in true perspective. As mentioned elsewhere, the agreement to sell was entered on 27.03.2007 and the possession was given on 04.05.2007. Therefore, it is incorrect to say that the capital gains tax liability arose in A.Y. 2012-13 when the same was in A.Y. 2008-09 as per the relevant provisions of the IT Act. Therefore, it cannot be said that the assessment order framed u/s. 143(3) is erroneous and prejudicial to the interest of the revenue. It is incorrect to say that the assessee has received a consideration of ₹ 5.63 crores. The conveyance deed dated 25.07.2011 perused by the Principal CIT was tri-partite deed comprising of seller [assessee], confirming party [R.Y. Infrastructure Pvt. Ltd.] and Shantigram Estate Private Ltd. [assignee of R.Y. Infrastructure Pvt. Ltd. and ultimate buyer]. An understanding was reached between R.Y. Infrastructure Pvt. Ltd. and Shantigram Estate Private Ltd. to transfer such beneficial ownership rights in favour of latter which were acquired by R.Y. Infrastructure Pvt. Ltd. from the assessee by agreement to sell. The assessee had already received the sale consideration of ₹ 28.41 lacs when she entered into agreement to sell with R.Y. Infrastructure Pvt. Ltd. and handed over the quite possession in its favour. All these facts were considered by the A.O. and being satisfied with the transaction qua the relevant provisions of the Act, the assessment order was framed u/s. 143(3) - Assessment order is neither erroneous nor prejudicial to the interest of the revenue. We, therefore, set aside the impugned order passed by the Principal CIT u/s. 263 and restore that of the A.O. passed u/s. 143(3) of the Act. - Decided in favour of assessee.
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