GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (2) TMI 343 - ITAT MUMBAI

2016 (2) TMI 343 - ITAT MUMBAI - TMI - Amount received on transfer of Bungalow - assessed as capital gains or income from others sources - CIT(A) held it liable to be assessed under the head “capital gains” - Held that:- The undisputed fact is that the income was received by the assessee for transfer of bungalow under exchange deed dated 29.8.2005. The assessee was having right and interest in the bungalow, which was transferred. Under such circumstances, it cannot be said that the assessee had .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ped under the law from saying that the sale agreement earlier entered by him cannot be acted upon or that the sale deed was invalid. Under such circumstances, the presumption under the law is that the assessee had sold his interest in the entire property even if he has acquired such ownership rights after the sale. We do not find any infirmity in the order of ld. CIT(A) on this issue and the same is upheld. - Decided against revenue

Deduction u/s 54F - interconnection of flats - wheth .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

T(A) after perusing the floor plan and other record held that in fact, the assessee had purchased only one flat which was conveyed to the assessee vide three separate agreements for the purpose of convenience of the builder or for any other purposes as the case may be . He held that it was a single dwelling unit and the assessee thus was entitled to claim all the benefits arising out of section 54F of the Act. In view of the detailed discussion made by the ld. CIT(A) after proper appreciation of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

IT(A)], Mumbai and it relates to the assessment year : 2007-08. 2. The Revenue has taken following grounds of appeal: 1. On the facts and in the circumstances of the case and in law, the ld.CIT(A) erred in holding that the sum of ₹ 2.16 crores received by the assessee without consideration, is liable to be assessed under the head capital gains and not under the head income from others sources ; (i) The ld. CIT(A) ignored the fact that in the remand report, the AO had clearly disputed the d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

her which clearly shows that there was an intention of the assessee to defraud the revenue; (iii) The ld. CIT(A) ignored the fact that in the property ordinarily should have devolved upon the two sisters of the assessee which was clear from the documents which were available on the record. (iv) The ld. CIT(A) erred in holding that the assessee had in any case an enforceable right in spite of the fact that at the time of assessment proceedings there was nothing on record to show that the property .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

A perusal of the above said grounds reveal that the revenue has taken two effective issues. The issue taken vide ground no.1 is as to whether the amount received by the assessee on transfer of Bungalow is to be assessed as capital gains or as income under the head income from others sources . 4. The brief facts of the case are that the assessee received sale consideration of ₹ 2.16 crores from M/s Lake View Developers in exchange of the bungalow as per the agreement dated 29.8.2005. As pe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

te Shri L H Verma and Late Taraben L Verma (mother of the assessee). The father of the assessee as per his Will bequeathed the property in favour of his wife with the stipulation that if she (mother of the assessee) pre-deceased Shri L.H.Verma (father), bungalow would devolve upon the assessee. However, Shri L H Verma, pre-deceased mother of the assessee hence bungalow devolved upon the mother of the assessee. A Will was also made by the mother of the assessee wherein she had intended that her p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Assessing Officer (hereinafter referred to as the AO) was that the assessee was only owner to the extent of 47 percent share in the bungalow. However, the assessee received consideration for entire bungalow, hence, the consideration, received more than his share in the property by the assessee, was not capital gain in the hands of the assessee. He accordingly, assessed the remaining 53% of the consideration received by the assessee in exchange of bungalow as income from other sources. 5. In .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssee also offered that to verify the facts, the AO should examine sisters of the assessee. However, the AO without making verification etc. simply opined that the sisters of the assessee had relinquished the right on latter date to the date of exchange agreement. He observed that in the date of transfer, the assessee was not the owner of the entire property. He, therefore, treated the income earned by the assessee in exchange of bungalow in excess of his 47% share, as income without consideratio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es that the assessee was always having interest in Varma Niwas . Two sisters of the assessee and the mother of the assessee had relinquished their share in favour of the assessee and the assessee had received consideration in lieu of exchange of his rights in the bungalow as per exchange agreement dated 29.8.2005. Therefore, he held that the income earned by the assessee was to be assessed under the head capital gain. 7. We have considered the rival contentions and perused the record available b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

me earned by the assessee there from is to be assessed as capital gains. Even for the sake of arguments if we presume that the assessee had sold the property in which he had no title or interest but after having sold the property he got right or title in the property then also he is estopped under the law from saying that the sale agreement earlier entered by him cannot be acted upon or that the sale deed was invalid. Under such circumstances, the presumption under the law is that the assessee h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version