TMI Blog2017 (10) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... oing through well reasoned finding of the ld.CIT(A) we do not see any error in it. Accordingly, this ground of appeal is rejected against assessee. Short term capital gain accrued to the assessee on sale of a land - year of taxability - Held that:- We find that this amount of ₹ 62.35 lakhs is taxable in the hands of the assessee. It is also pertinent to observe that it is taxable in the Asstt.Year 2010-11. The assessee has tried to withhold information about taxability of this amount in the Asstt.Year 2010-11 by offering this amount as business profit, which is not appreciable step at the end of the assessee. Considering these details and exercising power contemplated under section 153(6)(i) r.w. Explanation 2(a) of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Jayaben Balkrishna Oza. He directed the assessee to prove genuineness and credit worthiness of the transaction. The assessee failed to prove ingredients of section 68 of the Act. Accordingly, the AO has made addition. On appeal, the ld.CIT(A) has confirmed the addition by observing as under: 4.4. Having considered the facts of the issue, I am not inclined to accept the contentions of the appellant. As seen from the agreement of sale dated 28.08.2008 appellant was supposed to have received ₹ 11,00,000/-, being part of the sale consideration of ₹ 18,00,000/-, on the same date in cash. The said amount of ₹ 11,00,000/- was found credited in the books of accounts of the appellant. As stated by the A.O in the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is not, in the opinion of the AO satisfactory, then the sum so credited in the accounts may be treated as income of the assessee of that previous year. 6. A perusal of record would show that the assessee miserably failed to submit any details with respect to ₹ 11 lakhs received from Jayaben Balkrishna Oza. The assessee had developed a story that this amount was taken as an advance for sale of flat at Shefali Apartment, but he failed to demonstrate execution of any sale deed to legal heirs of Jayaben Balkrishna Oza. He failed to demonstrate refund of this amount to L/R of Smt. Jyababen Balkrishna Oza. The ld.CIT(A) has considered all these aspects in the finding extracted supra. After going through well reasoned finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the assessee on 27.12.2009. According to this MOU payments have been made to the assessee on 1.4.2008, 13.8.2008, 9.6.2009, 25.6.2009 and 27.9.2009. The sale deed was executed subsequently. The assessee was a confirming party and possession was handed over through MOU. Thus, according to the assessee possession was handed over in the accounting year relevant to the Asstt.Year 2010-11. The ld.counsel for the assessee further contended that the assessee offered the amount for taxation in the subsequent year. 10. On the other hand, the ld.DR relied upon order of the AO. He pointed out that deal was finalized in the accounting period relevant to the Asstt.Year 2009-10 and short term capital gain deserves to be assessed in this assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has signed subsequent sale deed in favour of Rajeshwar Corporation as a confirming party. Original owner has signed the sale deed in the capacity as vendor. In this situation, how the assessee can convert this right as stock-in-trade. Apart from the above, when this right is to be converted in stock in trade, then in such conversion any gain arisen to the assessee ought to be offered as a capital gain. No such exercise has been done by the assessee. He has not computed conversion gain and offered for it taxation in the year 2010-11. We further find that the assessee has played a fraud on the Revenue by taking a plea that he has offered this amount for tax in subsequent year. In fact, he has actually not converted the land in stock-intrade, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of appeal or reference under this Act, on or before the expiry of twelve months from the end of the month in which such order is received or passed by the Principal Commissioner or Commissioner, as the case may be; or (ii) where, in the case of a firm, an assessment is made on a partner of the firm in consequence of an assessment made on the firm under section 147, on or before the expiry of twelve months from the end of the month in which the assessment order in the case of the firm is passed. . . Explanation 2.-For the purposes of this section, where, by an order referred to in clause (i) of sub-section (6),- (a) any income is excluded from the total income of the assessee for an assessment year, then, an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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