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TMI Blog2017 (10) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect either on facts or in law and in both. 2. The learned First Appellate Authority failed to appreciate the fact that the Assessing Officer has not carried out any further enquiries as directed by the Hon'ble Income Tax Appellate Tribunal. 3. The learned First Appellate Authority failed to appreciate the fact that there is no valid transfer of land to attract capital gain tax in the hands of the appellant. 4. The learned First Appellate Authority failed to adjudicate the grounds on validity of the assessment order in the absence of notices to all the legal heirs. 5. The learned First Appellate Authority is not justified in confirming the action of the Assessing Officer in bringing to tax the entire long term capital gain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basiva Rao had engaged Shri Ambati Satyanarayana as a middleman/broker on their behalf for initiating a purchase deal for the entire land of 10164 sq. yards from the above three groups of persons. In September, 1999, the Enforcement Directorate, Govt. of India, had conducted certain inquiries/investigations into the alleged violation of Foreign Exchange Regulation Act, by Shri Sambasiva Rao, the promoter of the two companies mentioned above, and it was found that he had received certain secret commission from a supplier of urea from Turkey without the authority from the RBI and that such secret commission was used by him to purchase the 10164 sq. yards of land located at Nampally, Hyderabad from the above three groups of persons sometime in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/Hyd/09 had set aside the same to the CIT on the ground that no proper opportunity of hearing was offered or extended to the assessee. The CIT, consequent to the order of the Tribunal, observed that there was no assessment order to be revised as the Income Tax Appellate Tribunal had set aside the assessment order, yet he directed the AO to do the assessment afresh after considering his directions to consider the facts relating to quantum of assessee's share in the land i.e., 1/3rd of the land, and to adopt exact sale consideration instead of approximate value as adopted in the original assessment, after providing sufficient opportunity to the assessee as per law. The assessee filed appeal before the Tribunal against this order of the CIT a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulu and his two brothers to be only Rs. 54.00 lakhs, the AO did not accept the same. She relied upon the notings in the seized material to come to the conclusion that the total value of the property is Rs. 10.00 crores which worked out to be Rs. 9,838.65 per sq. yard. Therefore, she treated the share of the land of Sri Ramulu to be 1/3rd i.e., 1304.33 sq. yards and worked out the Long Term Capital Gain at Rs. 1,28,32,846 and computed the tax accordingly. 9. Aggrieved, the assessee preferred an appeal before the CIT (A) objecting to the assessment and also bringing to his notice that the Tribunal had directed the issue to be examined afresh in the light of the assessments completed in the case of the co-owner Smt. N. Andalamma and also in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Smt. N. Andalamma. He also drew our attention to the fact that as per the Enforcement Directorate order, the assessee's father and his group had received only Rs. 54.00 lakhs as sale consideration but this fact has not been considered by the AO. He drew our attention to the various variations in the notings of the seized material as to the actual consideration received by the assessee and also with regard to the registration charges incurred for the purchase of the property by Mr. Sambasiva Rao. He drew our attention to the fact that at one place, registration charges are mentioned as Rs. 1.4 crores, whereas at another place, Rs. 2 crores is mentioned whereas the actual registration charges incurred was Rs. 16.00 lakhs (approximately) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee Projects and the co-owner, Smt. N. Andalamma have been set aside to the file of the AO. Consequent to this direction, the AO is required to consider the assessments in the hands of the vendee as well as the co-owner before completing the assessment in the hands of the assessee to adopt a uniform and rational approach. Further, we also find that the assessment was initially completed in the hands of Shri A. Ramulu, who has died thereafter, and all his legal heirs have to be brought on record to bring to tax his income. Though the learned Counsel for the assessee has brought to the notice of the AO that Shri A. Ramulu is survived by three sons, the AO has refused to bring them on record stating that the assessee has not filed the legal hei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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