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2018 (5) TMI 1163 - HC - Income TaxRevision u/s 263 - capital gain - did assessee receive sale consideration of ₹ 4,43,52,100/- out of such sale? - Held that:- In the sale deed, the assessee did pose as a seller and sale consideration stated to have been paid by the purchaser Gatil Properties Ltd was undoubtedly ₹ 4,43,52,100/-. However the entire amount was never received by the assessee. It was a confirming party- Melody Complex Pvt. Ltd which, under the agreement to sale, had a right to insist on purchasing the land or seek specific performance of the agreement and receive bulk of the sale consideration. Out of the total sale consideration, ₹ 4,04,77,669/- was received by such confirming party. When the assessee never received anything beyond ₹ 38,74,431/- originally agreed, question of charing capital gain from the assessee on a sum larger than the said amount of ₹ 38,74,431/- would not arise. It is true that in a short span, the parties to the said transactions showed spectacular appreciation in land price. If the Revenue was of the opinion that such unusual rise in the land price indicated non-genuineness of the transaction itself, no such angle has been probed. In any case, the remaining sale consideration of ₹ 4,04,77,669/- received by Melody Pvt. Ltd can always be taxed appropriately in the hands of the said recipient. We fail to see how the Commissioner could have held the assessee answerable for capital gain for a sum which she never received.
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