9911796707
TMI Blog2016 (9) TMI 1452X X X X Extracts X X X X X X X X Extracts X X X X ..... not as 'long term capital gain' as claimed by assessee. 2. Briefly stated, assessee admitted an income of Rs. 1,81,260/- in her return of income. She also admitted loss from capital gains during the year. AO in the scrutiny assessment has noticed that Sub-Registrar Officer valuation on sale of land was at Rs. 1,32,00,000/- as against Rs. 20 Lakhs admitted by assessee. It was contended by assessee that she and her two minor children have executed the document of sale i.e., sale of Plot No. 19 admeasuring 1200 sq. yds., situated at Ramannaguda Village, Serilingampally Mandal to Smt. E. Bramara W/o. Sri Shyam Prasad on 29-07-2009 in special circumstances. Her husband Late Kasi Visweswara Vara Prasad has promised to gift the said land to her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Valuation Officer and after giving credit to the cost of acquisition as claimed, determined the Long Term Capital Gain at Rs. 69,01,731/- and brought to tax the above amount. In addition to that, assessee claimed loss of Rs. 18,17,147/- on sale of shares of M/s. Chinimilli Drugs Pvt. Ltd., belonging to her and her husband. In computation of income, she admitted sale price of Rs. 1,52,03,220/- and purchase cost also Rs. 1,52,03,220/-. The indexation cost was arrived at Rs. 1,70,20,367/- and loss of Rs. 18,17,147/- was claimed. The AO noticed that assessee and her husband were having only 10,000 shares of Rs. 10/- each amounting to Rs. 1 Lakh but made investments towards share application money for 19,55,000 shares. The shares were a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings or during the appellate proceedings, why the appellant executed a sale deed when the intent was to gift the land to the vendee. 9. The appellant's claims regarding the extraneous circumstances leading to the execution of the sale deed at a rate less than the SRO's rate is neither explained satisfactorily nor supported by any evidence. The claim that sec. 50C was not applicable to the appellant is, therefore, rejected and the assessment of long term capital gains at Rs. 69,01,731 is upheld". 3.1. Even though, assessee has raised the grounds on the treatment of sale of shares [Ground 1(ii)], the Ld. CIT(A) did not adjudicate the issue. Assessee is aggrieved and raised the grounds on the above two issues. In the course of presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer of the property as she cannot come out of the house and both the children are minors and having no acknowledge about the formalities of transfer of the property. 9. The buyer prepared the documents and the assessee executed the without thinking the consequences. 10. The assessing officer is of the opinion that it is a sale and not a gift. 11. The asseessee approached E.Bramara and briefed about the opinion of the Income Tax Officer. 12. Subsequently E.Bramara has given an affidavit duly notarized stating the facts that the property has been received as a gift. 13. Even the purchaser has accepted all the facts mentioned above in her affidavit and .further confirmed that, the property has been transferred as gratitude by the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e than what assessee has received. AO has to give a fair opportunity to assessee with reference to the Valuation Officer's report and obtain objections if any from assessee, before determining the value when assessee admits that the property was sold for Rs. 20 Lakhs on certain special considerations. Since no opportunity was given to assessee before adopting the value, we are of the opinion that assessee should be given due opportunity by following the principles of natural justice. On that reason alone adoption of the sale value cannot be approved. 7. The next issue to be examined is how the AO could bring the entire amount to tax in the hands of assessee? As seen from the sale deed placed in the Paper Book at Pg. 4, Smt. Ch.V. Ramani an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greement of sale or not also determines in whose hand the income is to be assessed. In case the possession was also handed over at the time of agreement of sale, then, the income gets crystalised in the hands of sri Kasi Visweswara Vara Prasad, and not in the hands of assessee, who has subsequently executed the document. However, if there is no agreement of sale, then the payment of Rs. 7,49,000/- requires examination, because there cannot be any consideration in monetary terms, when the property is to be gifted to her as claimed. These aspects have not been examined and Smt. Bramara has not been enquired. In view of this, we are of the opinion that there are enquiries to be conducted not only with reference to the nature of transactions, b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
