TMI Blog2019 (8) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire sale consideration to the exclusion of M/s ESS ESS Metals and Electricals or that the consideration paid to M/s ESS ESS Metals and Electricals was excessive. It is open for the Revenue to verify whether the sale consideration said to have been received by M/s ESS ESS Metals and Electricals was offered to tax or not in the scrutiny of the return of income of M/s ESS ESS Metals and Electricals. It is not open for the Revenue to contend that to the exclusion of M/s ESS ESS Metals and Electricals, assessee alone must receive the entire sale consideration ignoring the leasehold rights held by M/s ESS ESS Metals and Electricals for 99 years in respect of the very same property which was the subject matter of the sale. CIT(A) had rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Electricals received ₹ 17 crores towards the surrender of leasehold rights and cost of construction/Malba of the leased land to the vendee. 3. Assessee filed the return of income for the Assessment Year 2012-13 on 28/7/2012 declaring a total income of ₹ 9,76,19,520/-. During scrutiny, learned Assessing Officer held that the ownership right of the property under consideration was wholly and exclusively with the assessee through three of the sale deeds executed and therefore, whole of the amount of sale consideration of ₹ 35 crores should have come to the assessee and accounted for computation of capital gain. He, therefore, held that taking only ₹ 18 crores into con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erm capital gain and short-term capital gain stating that all the ownership rights, along with title and interest, of the immovable property were vested in the assessee alone and, therefore, any payment made toM/s ESS ESS Metals and Electricals is not only excessive but unwarranted. 7. Ld. AR advanced arguments in support of the impugned order and submitted that when the sale deed in favour of M/s HH Buildtech Private Limited itself speaks of the apportionment of the sale consideration between the titleholder and the holder of the leasehold rights, it is not open for the Assessing Officer to dictate terms of sale consideration and the receipt of money on account of sale of land under consideration. 8. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1975 and the assessee purchased the property between 1997 and 2010, the rights acquired by the assessee must be understood to be subject to the leasehold rights. It is, therefore, clear that the Assessing Officer was inclear error in holding that the assessee had become the sole owner of the property, which is factually and legally incorrect. Assessee was not the absolute owner of the property and her rights were subject to the leasehold rights held for 99 years by M/s ESS ESS Metals and Electricals. In such situation, it is for the parties to settle the sale consideration for transfer of respective properties held by the assessee and M/s ESS ESS Metals and Electricals. Revenue authorities have no say to dictate the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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