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2020 (1) TMI 966 - AT - Income TaxChargeability to tax of long term capital gains - sale of land to assessee's husband which was not disclosed by assessee in return of income filed with Revenue - HELD THAT:- Assessee has brought on record documents such as Vardhamanam Deed, Settlement Deed and affidavit to contend that this entire sale was sham with a view to bring on record market value of said land so that compensation from Government at market value can be claimed. The guideline value of the said property is also higher as against compensation awarded by Government for compulsory acquisition of assessee property being 40.5 cents of land , as we have detailed above . The assessee has filed petition with District Collector for enhanced compensation. The details are elaborated in preceding para of this order. Certain additional evidences are also brought on record by assessee for the first time before tribunal which are even post appellate order passed by learned CIT(A) viz. registered settlement deed dated 12.05.2014 executed by her husband settling this property in favour of assessee. The affidavit is also filed contending that the entire sale transaction of sale of 25 ½ cents of land to husband was sham transaction. These documents including additional evidences filed before tribunal including fresh contentions made by assessee before tribunal for the first time , need verification by authorities as these are fact finding exercise which requires investigation of facts to unravel truth Assessee deserves one more opportunity and the matter need to be remitted back to the file of the AO for fresh framing of assessment denovo after considering all the explanations/evidences filed by the assessee in its defense including customary law applicable to assessee and her husband which has attained force of law and is not in conflict with specific provisions of 1961 Act and investigation of facts. We clarify that it is the assessee who is contending that sale transaction executed by her through registered sale deed in favour of her husband is a sham transaction , and thus the onus is on the assessee to prove that it was a sham transaction and it is for the assessee to rebut the presumption that transfer was complete when registered sale deed was executed by assessee and possession handed over to husband of the assessee , by cogent evidence in de novo assessment proceedings before AO. The AO shall allow assessee to file evidences/explanations in her defense in set aside assessment proceedings which shall be admitted by the AO in the interest of substantial justice and then the issue be adjudicated on merits in accordance with law. Needless to say that the AO shall give proper and adequate opportunity of being heard to the assessee in accordance with principles of natural justice in accordance with law in denovo assessment proceedings - Appeal filed by assessee allowed for statistical purposes.
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