TMI Blog2010 (3) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessments completed u/s.153A r.w.s.153C/143(3) of the Income-tax Act,1961. 2. The facts of the case in brief are that the assesses are husband and wife. There was a search operation u/s.132 in the residence of Shri Sanal Kumar on 05-10-2005 under a warrant issued in the name of P.H.Mohammed Kunju Bros. and certain incriminating documents were found. In addition to this, documents relating to sale of properties standing in the name of the assessee s wife, Smt. Raji Sanal Kumar were also found. On scrutiny of the documents, Assessing Officer came to the conclusion that Smt. Raji Sanal Kumar has received additional consideration over and above mentioned in the sale deed. To this conclusion, the Assessing Officer was fortified by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mar is accepted by the wife (Smt. Raji Sanal Kumar) as a loan repayable, there was no question of transfer of assets without adequate consideration and hence the question of applying provisions of section 64(iv) does not arise. Thus, CIT(Appeals) held that capital gain arising from the transfer of 12.565 cents of land has to be assessed in the hands of Smt. Raji Sanalkumar on substantive basis and not in the hands of Shri Sanal Kumar. Against this findings of the CIT(Appeals), the Revenue is on appeals. 4. We have heard rival submissions and perused the materials available on record. The addition towards capital gain has to be fixed on the basis of sale consideration reflected in the registered sale deed, which should be the criteria for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(Appeals) to allow deduction of ₹ 1,14,478/- out of ₹ 4,80,000/- being the interest paid by the assessee to the bank on the amount of loan obtained from the bank and advanced to Shri Raveendran, uncle of the assessee. In the Cross Objection by Shri Sanal Kumar, the assessee prays for the deduction of the entire amount of ₹ 4,80,000/- instead of ₹ 1,14,478/- al lowed by the CIT(Appeals). 6. It is the submission of the assessee that the assessee had advanced a sum of ₹ 5 lakhs to his uncle, viz. Shri Raveendran and paid interest amounting to ₹ 4,80,000/-. Shri Raveendran has repaid the loan amount and interest both amount to ₹ 9,80,000/- during the year under consideration. The Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . By way of search material there was evidence of repayment of the above loan together withRs.4,80,000/- as interest component. The Assessing Officer added the entire interest component of ₹ 4,80,000/- during the year relevant. On appeal the ld. CIT(Appeals) found that the interest paid for this assessment year, 2005- 06 is ₹ 1,14,478/- and allowed the deduction to that extent. In other words the Assessing Officer s addition under the head interest income was upheld by the ld. CIT(Appeals) to the extent of ₹ 1,14,478/- only and not the entire interest component. We see no error with the order of the ld. CIT(Appeals) under the above facts and circumstances. Hence, we reject the 3rd ground of the Department for this assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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