TMI Blog2014 (3) TMI 1076X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the Hon'ble ITAT erred in not appreciating that the allotment of two flats to Shri.Vinay Bhasin free of cost cannot be taxed in the hands of the Appellant under Section 28(iv) or any other provisions of the Income Tax Act,1961 ?” - Income Tax Appeal No. 14 of 2012 - - - Dated:- 20-3-2014 - S. C. Dharmadhikari And G. S. Kulkarni, JJ. For the Appellant : R. V. Desai, Rahul Hakani, Mandar Vaidya For the Respondent : S. V. Bharucha ORDER 1. Heard Mr.R.V.Desai, learned Senior Advocate appearing on behalf of the Appellant-Assessee and Mrs.S.V.Bharucha, learned Counsel appearing on behalf the Revenue. 2. We have perused the order passed by the Assessing Officer, Commissioner of Income Tax (Appeals) and Income Tax Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... flats are situated on the ground floor. Two flats on the ground floor have been sold, one to M/s.Concord Shipping Ltd. and another to one M/s.Rochem India Pvt.Ltd.. Then two other flats have been sold to M/s.Concord Shipping Ltd. at the rate of ₹ 4429/- per sq.ft. on 4.11.1996 for a consideration of ₹ 31,00,000/- each. She submits that the balancesheet was produced and which would show that even in relation to the second entity M/s.Concord Shipping Ltd., the Assessing Officer and the Tribunal have found that the lower sale realisation has not been explained. M/s.Concord Shipping Ltd. has also given advance of ₹ 69,88.000/-. If both the parties have paid advance, then why the flats have been sold at the lower rate to M/s.Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .Ltd. at lower rate and that was rightly termed as colourable defence. To that extent, we are of the opinion that the Tribunal was justified in reversing the order of the Commissioner of Income Tax (Appeals). That order of Commissioner of Income Tax omitted from consideration the germane and relevant material. That was the course adopted by the Commissioner and which was found to be totally unjustified in law. In such circumstances, the findings of fact in regard to these two entities cannot be reappreciated and reappraised. We are not in agreement with Mr.Desai that by settled commercial practice or market trend the flats have been sold and the device adopted cannot be termed as colourable at all. In the present case based on the documents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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