9911796707
TMI Blog2020 (5) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gain were found. The documents were : (i) Copy of sale deed dated 07.04.2003 for purchase of terrace rights of an area of 4000 sq.ft. of Vinita Mansion on plot no.5 survey no.70 & 71, situated at Boosereddyguda, West Maredpally, Secunderabad, for Rs. 7,00,000/- from Sri S.Yadaiah. (ii) Receipt dated 7.5.2003 given by Sri S.Yadiah for having received from the assessee Rs. 2,50,000/- through DD no.734973 and cash of Rs. 50,000/- towards full and final settlement of terrace rights as discussed in the document. 2.1. A statement of the assessee was also recorded during the course of survey, in which, assessee submitted that he held 7000 shares of M/s.Asrani-Inns and Resorts and the same were disposed of in 2002 from which the assessee gained some capital gain. When asked whether assessee has paid tax on such capital gains, the assessee replied that he has invested part of the capital gain in acquiring a pent house having 4000 sq.ft. at Vinila Apartments, West Maredpally, Secunderabad for Rs. 7 lakhs, part of which was paid in cash and part of it through DD from his account no.1007 in Indian Bank in 2002 and that the DD was given to Mr.K.Yadiah, builder of the apartment. Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital gain and restored the matter to the file of AO for fresh adjudication with a direction to consider assessee's additional evidence and whether there was transfer of shares during the P.Y. 2002-03 relevant to A.Y. 2003-04. 2.3. The AO therefore initiated assessment proceedings by issuance of notice u/s 143(2) of the Act on 23.11.2009. The assessee had stated that the shares were not registered in favour of the transferee during the PY 2002-03 and that the transfer of property held by Asrani Inns and Resorts was subject to litigation and the same was settled in 2004 and therefore neither the immovable property nor the shares were transferred during the relevant PY 2002-03. It was also submitted that the assessee has spent Rs. 42,42,000/- upto 31.3.2003 but the AO allowed relief u/s 54F proportionately to the extent of Rs. 23,35,440/- only. The AO took into consideration, the release deed executed by the assessee and 9 others in favour of M/s Asrani Inns and Resorts Pvt.Ltd. wherein the releasors undertook to release all the rights, title, interest etc. in the property situated at 4-1-898, Boggulkunta, Hyderabad in favour of the transferee i.e. M/s Asrani Inns and Resorts Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest u/s 234B and 234C of the I.T.Act. 6) Any other ground that may be urged at the time of hearing. 5. The Ld.Counsel for assessee reiterated the submissions made before the authorities below and submitted that the assessee not only held 7000 shares in M/s Asrani Inns & Resorts P Ltd, but the immovable property at Boggulkunta was also registered in his name and other co-owners. Before the Tribunal, he filed copies of the Encumbrance Certificates dated 15.12.2020 and 27.02.2020 to demonstrate that the property still stood in the name of the assessee and the other co-owners. Therefore, according to him, there is no transfer of property during the relevant AY and hence the capital gain has not arisen during the relevant AY. 5.1. With regard to the claim of exemption, the Ld.Counsel for assessee has filed additional evidence stating that the amount invested in the purchase/construction of a house till the date of filing of the return of income has to be allowed as a deduction and as per Sec.54F the amount can be invested in construction of a house within a period of 3 years from the date of transfer of original asset and the uninvested capital gain if any can be brought to ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s filed before Hon'ble High Court of AP the Director of the company has mentioned the release deed therein and the dispute was with the Government of A.P. and the Director of Stamps and Registration and not amongst the assessee and others. Further, assessee himself has declared the capital gain in his return of income and has claimed exemption u/s 54F of the Act. Therefore, irrespective of the date when the release deed has been registered, there is a transfer of shares during the PY 2002-03 as far as assessee is concerned. Therefore, I do not find any reason to interfere with the order of the AO and CIT(A) holding that the transfer has taken place during the PY 2002-03 relevant to AY 2003-04. Grounds 2 and 3 are thus rejected. As regards exemption from long term capital gain u/s.54F of the Act, the decisions relied upon by Ld.Counsel for the assessee are for the proposition that for construction of a house, the assessee has got a period of 3 years and the capital gain to the extent which is not invested can be brought to tax only on the lapse of 3 years. I find that the proviso to Section 54F of the Act reads as under: "Section 54F. ............................ Provided that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
