9911796707
TMI Blog2022 (12) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... an individual, and it is a case of reopened assessment. The reassessment proceedings on the short ground that "the assessee has sold immovable property valued at Rs 2,05,24,524 on 26.9.2015" and that the Assessing Officer had "reasons to believe that the long term capital gain from the said transaction is taxable, and the income, to that extent, has escaped assessment for the assessment year 2006-07". In the ensuing assessment proceedings, the Assessing Officer noted that the assessee was a director of M/s Abid Steels Co Ltd (ASCL, in short) and the assessee had given his personal guarantee to, on behalf of the ASCL and in respect of its commercial borrowings from, the State Bank of India. The assessee owned land admeasuring 2291.9 square m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrendered all his rights, title and interest to the vendor" (i.e ADPL). He thus proceeded to tax the entire amount of Rs 2,04,93,500 as a long-term capital gain. Aggrieved, assessee carried the matter in appeal before the learned CIT(A) but without success. 3. We have heard the rival contentions, perused the material on record and duly considered the facts of the case in the light of the applicable legal position. 4. As learned counsel rightly points out, under section 45, "any profits or gains arising from the transfer of a capital asset effected in the previous year shall.......be chargeable to income-tax under the head "Capital gains", and shall be deemed to be the income of the previous year in which the transfer took place". What is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmercial borrowings, by the bankers, or by the ARCs, the owners of these assets are not in a position to pay their dues, and that is the reasons that these assets get taken over. However, on sale of such properties, even as the entire sale proceeds of the properties goes to the bankers, the owner of the property alone is expected to pay the capital gains tax, and there is no mechanism to ensure that the dues of the state, i.e. tax on the long term capital gains, are secured in the process of sale of such propeties. While owners of these assets, in many cases, have no money to pay the tax in question as they are already bankrupt and no part of sale consideration reaches them anyway, the recipients of sale considerations in these transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
