Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Dhanesh P. Soni Prop. Devsatya Corporation Versus ITO, Ward-3 (2) Ahmedabad

2017 (10) TMI 482 - ITAT AHMEDABAD

Addition u/s 68 - explanation about the nature and source of receipt - Held that:- 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 amoun .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rve 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 Act, 1961, we direct the AO to assess short term capital gain at ₹ 62,34,953/- in the Asstt.Year 2010-11. With th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ds no.1 and 4 including sub-grounds are general grounds of appeal, which do not call for recording of any specific finding, hence rejected. 3. In ground no.2, the assessee has pleaded that the ld.CIT(A) has erred in confirming addition of ₹ 11.00 lakhs which was added by the AO with the aid of section 68 of the Income Tax Act, 1961. 4. Brief facts of the case are that the assessee at the relevant time was running proprietorship concern in the name and style of Dev Satya Corporation . He ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 cr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of sale. Appellant had not demonstrated the repayment of ₹ 11,00,000/- to Smt. Jayaben, consequent on the sale being aborted. As seen from the affidavit of Shri Vinodbhai D. Soni dated 22.12.2008 (referred to in the written submission reproduced above), appellant in turn was supposed to have lent the money of ₹ 11,00,000/- to Shri Vinodbhai D. Soni. The date of lending is not mentioned in the affidavit. Having considered all these facts, I uphold the finding of the A.O. that the app .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

explanation about the nature and source thereof, or the explanation offered by 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in confirming addition at ₹ 62,34,953/ which was added by the AO on account short term capital gain accrued to the assessee on sale of a land. 8. Brief facts of the case are that the assessee has purchased a plot comprised in Final Plot no.19/1 situated at Vadodra from Kirti Developer for a consideration of ₹ 62,35 lakhs. An agreement to purchase was executed on 7.5.2008. It emerges out from the record that this plot was finally sold to M/s.Rajeshwar Corpaotion for a consideration o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is contention of the assessee and assessed short-term capital gain in the Asstt.Year 2009-10. The appeal to the ld.CI(A) did not bring any relief to the assessee. 9. Before us, the ld.counsel for the assessee contended that a memorandum of understanding was executed between representatives of Rajeshwar Corporation and 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 subs .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rt term capital gain deserves to be assessed in this assessment year. 11. We have duly considered rival contentions and gone through the record carefully. As far as assessment of ₹ 62.35 lakhs as short term capital gain is concerned, there is no dispute between the parties. The capital gain has arisen to the assessee and it has to be assessed in his hand. The dispute is about the year of taxability. According to the assessee, it is taxable in the Asstt.Year 2010-11 whereas the according to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

has been offered in the Asstt.Year 2010-11. The assessee s plea before the ld.CIT(A) was, that he had converted this land as stock-in-trade and thereafter sold it. The amount was credited in the profit & loss account, and it has been offered as business profit. We have examined the computation of income submitted by the assessee for the Asstt.Year 2010-11, and other details. It is pertinent to observe that the assessee has not acquired absolute right in the property. He has acquired only rig .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ne 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, but in the computation of income, considered it as a business profit. The ultimate income offered by the assessee in subsequent year is very a negligible income. Copy of the acknowledg .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

153(6) r.w. Explanation 2(a) of the Income Tax Act, 1961. In order to appreciate the details in more scientific way, we deem it appropriate to take note of sub-section (6) and Explanation 2(a) of section 153. They read as under: Section 153 …… …… 6) Nothing contained in sub-sections (1) and (2) shall apply to the following classes of assessments, reassessments and recomputation which may, subject to the provisions of sub-sections (3) and (5), be completed- (i) where .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| 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