TMI Blog2018 (5) TMI 1544X X X X Extracts X X X X X X X X Extracts X X X X ..... d 27/12/2011 relevant to Assessment Year (AY) 2009-10. 2. The assessee has raised following grounds of appeal : 1.1 That the Learned Honorable CIT(A) has erred in confirming the addition of ₹ 56,65,900/- made by the Assessing Officer as a short term capital gain. 1.2 That the various reasons advanced by ld.CIT(A) in confirming the addition are contrary to the facts of the case and evidence on record. The appellant respectfully submits that in view of various submissions made by the appellant, the addition of ₹ 56,65,900 should be deleted. 1.3 The appellant respectfully submits that the property under issue is purchased by Rajesh P Shah Ind. and also sold by Rajesh P Shah Ind. The capital gain if any arising from sale of land belongs to Rajesh P Shah Ind. only. The appellant therefore respectfully submits that the addition of ₹ 56,65,900 made on account of short term capital gain on sale of land be deleted 3. The only interconnected issue raised by the assessee in its grounds of appeal is that Ld. CIT(A) erred in confirming the order of AO by sustaining the addition of ₹ 56,65,900/- as short term capital gain. 4. Briefly stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment proceedings of Shri Rajesh P. Shah. In view of above, the AO added the amount of short term capital gain for ₹ 56,65,900/- in the hands of the assessee. 7. Aggrieved, assessee preferred an appeal to Ld. CIT(A). The assessee before the Ld. CIT(A) submitted that indeed the payment was made by Rajesh P. Shah (HUF) for the purchase of land. But it was done so due to the fact that there was not sufficient balance with Rajesh P. Shah in his individual account. However, the book entries were made in the books of Rajesh P. Shah (HUF) as well as Rajesh P. Shah individual account which were shown as loan in the account of Rajesh P. Shah from HUF. 8. Thus sale proceeds of agriculture land was invested by Rajesh P. Shah along with his brother Shri Jayesh P. Shah in their individual capacity for ₹ 1,57,10,000/- and accordingly the deduction was claimed u/s 54B of the Act. 9. However, the Ld. CIT(A) during the appellate proceedings observed certain facts as detailed under: i. Shri Rajesh P. Shah and his brother have not disclosed any capital gain income in their individual income tax return. ii. Payment for the purchase of such agriculture land was ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant as co-owner. The deposit of sale consideration is in the nature of application of sale consideration and has no further interpretation, least evidence of ownership. It is therefore AO is justified both on merit as well as on legal proposition in computing STCG of ₹ 5665900 in the hands of appellant. All these grounds 1.2 to 1.8 are therefore dismissed. Being aggrieved by the order of Ld. CIT(A) assessee is in second appeal before us. The Ld. AR before us filed two paper books, which are running from pages 1 to 23 and submitted that the capital gain was duly reflected in the individual account of Shri Rajesh P. Shah and his brother. The Ld. AR in support of his claim filed the copy of statement of income of Shri Rajesh P. Shah, which is placed on Page 17 of the paper book. 10. The Ld. AR further submitted that the payment for the purchase of land was made by the account of HUF as there was no fund available with the assessee. However, the effect of the payment made by HUF on behalf of Shri Rajesh P. Shah was given in its ledger accounts. The Ld. AR in support of his claim filed the ledger copy of Shri Rajesh P. Shah in the books of Shri Rajesh P. Shah (H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such land. The relevant extract of the ledger of HUF in the books of Shri Rajesh P. Shah is placed on Page 9 of the paper book, which is extracted as under: Rajesh P. Shah HUF Ledger Account 19, Devarshi Bunglow, Nr. Tulip Bunglow, Thaltej, Ahmedabad 1-Apr-2006 to 31-Mar-2007 Page 1 Date Particulars Vch Type Vch No./Excise Inv. No Debit Credit 01.04.2006 Dr Opening Balance 8,05,551.77 03.08.2006 Cr Punamchand Manilal Patel Journal 40 1,64,500.00 10.08.2006 Dr Land at Jagatpur 59/2/44 Journal 41 9,00,000.00 31.012007 Dr Phoenix Lamps India Ltd. Journal 53 1,53,791.8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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