TMI Blog2020 (2) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... that the said amount was invested in capital bonds. Thus the said amount was received by the assessee as long term capital gains in view of surrender of rights by the assessee vis-a-vis the property in question. In the circumstances, merely on the basis of suspicion, the revenue authorities ought not to have rejected the claim of the assessee that the said amount was received as long term capital gains but to treat the said amount as income from other sources . Substantial question of law as framed above is accordingly answered in favour of the assessee - INCOME TAX APPEAL NO. 1219 OF 2017 - - - Dated:- 27-1-2020 - UJJAL BHUYAN, MILIND N. JADHAV, JJ. Mr. Rajeev Waglay i/b. DSR Legal for the Appellant. Mr. Sham Walve a/w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h an amount of ₹ 50 lakhs was disclosed as the amount received from M/s. Carlton Coats Pvt. Ltd. on surrender of the rights of the assessee to the property in question, situated at Apti. However, assessee claimed deduction of the aforesaid amount under Section 54EC of the Act as the said amount was invested in capital bonds. Therefore, income from long term capital gains was disclosed as nil. 6. Assessing Officer did not accept the said claim of the assessee. By the assessment order dated 03.03.2015 passed under Section 143(3) read with Section 254 of the Act the said amount was added back to the income of the assessee as income from other sources . 7. Assessee preferred appeal before the Commissioner of Income Tax (Appeals)- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he other hand, Mr. Walve, learned standing counsel has referred to the impugned order of the Tribunal and submits that assessee failed to prove its tenancy over the property in question. No document was produced by the assessee before the Tribunal to show that he was a tenant under M/S. Carlton Coats Pvt. Ltd. in respect of the property in question. Therefore, there is no error or infirmity in the view taken by the Tribunal that since assessee had failed to prove its tenancy under M/S. Carlton Coats Pvt. Ltd., the amount disclosed by the assessee was added as income from other sources . 12. Submissions made by the learned counsel for the parties have been considered. We have also perused the materials on record. 13. On a query by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. for settlement of its claim to the property and had further disclosed that the said amount was invested in capital bonds. Thus the said amount was received by the assessee as long term capital gains in view of surrender of rights by the assessee vis-a-vis the property in question. In the circumstances, merely on the basis of suspicion, the revenue authorities ought not to have rejected the claim of the assessee that the said amount was received as long term capital gains but to treat the said amount as income from other sources . 16. On due consideration, we find sufficient force in the contention of the appellant / assessee. The substantial question of law as framed above is accordingly answered in favour of the assessee an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
