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TMI Blog2021 (8) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... s return declaring total income of Rs. 3,20,401. During the course of the assessment proceedings, it was observed by the AO that the assessee entered into a Development agreement on 30.09.2011 with M/s. Srishti Developers in respect of residential property situated at Plot No.37, S.No.125/1B, Girija Co-operative Housing Society, Paud Road, Kothrud, Pune. The transaction under the Development agreement took place between Shri Bhaskar Chaudhari, the assessee's father, the legal owner of the property and M/s. Srishti Developers for sum of Rs. 2,70,50,000. The assessee signed as consenting party and received a sum of Rs. 60 lakhs through cheque from M/s Srishti Developers under clause 3(A) of the development agreement. This amount was offered a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e transfer by acting as consenting party on receipt of Rs. 60 lakhs in lieu of vacating the first floor. The MoU entered into between the assessee's father and M/s. Srishti Developers clearly records this fact that a sum of Rs. 60 lakhs was given by cheque by the Developer to the assessee. Under such circumstances, a question arises as to whether the authorities below were justified in treating the sum of Rs. 60 lakhs as 'Income from other sources' in the hands of the assessee and thereby denying the benefit of exemption u/s 54F of the Act. 5. On an earlier occasion when this appeal came up for hearing before the Tribunal, the ld. DR was directed to verify from the AO of assessee's father as to how the transaction of Rs. 60 lakhs was refle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s was received by the assessee as consideration for transfer of his right to occupy the property. As such, we are unable to give any other colour to the transaction, which has been accepted by the Department as such in the hands of the assessee's father. Even if for a moment, it is accepted that the sum of Rs. 60 lakhs was received by the assessee from his father not towards consideration for transfer of right to occupy the property, at the most, it would amount to a gift in his hands, which is again not chargeable to tax. The authorities below have characterized Rs. 60 lakhs as income chargeable to tax under the head 'Income from other sources'. However, no specific clause of section 56 of the Act has been brought to our notice encompassin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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