TMI Blog1986 (8) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... our of Dr. Mrs Surjit Tandon was even unilateral and the same were executed to avoid the confiscation of land under the Land Ceiling Act. Affidavits of the vendor and the vendee in support of the said sales being fictitious were placed by the assessee. It was also contended that firstly there were no sales, secondly in the alternative it was sale of agricultural lands. The ITO as per reasons recorded by him in his order rejected the contention of the assessee and subjected the capital gains of Rs. 95,000 to tax. 3. Aggrieved by the said assessment order the assessee came before the AAC who confirmed the finding of the ITO for detailed reasons given by him in his order. It is said action of the AAC which is contested by the assessee befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having purchase any land. There he also relied on Hiralal Ram Dayal vs. CIT (1980) 14 CTR (P H) 88: (1980) 122 ITR 461 (P H) for the proposition that registration of sale deed is not the last word for sale. 6. The ld. Departmental Representative, on the other hand, besides relying on the order of the two lower authorities, read at length Para 4 of AAC's order and submitted that it was a device which was created by the assessee and, therefore, should have no seal of recognition from any judicial body. In support thereof he relied on CIT vs. Korji Junabhai Kutecha 1977 CTR(SC) 137 : (1977) 107 ITR 101 (SC) also for the proposition that in respect of sale made to Mrs. Tandon thought only Rs.10,000 were received on the basis of doctrine of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 976. The two plots areas covering 2392 sq. yds. and 975 sq. yds were sold in favour of Dr. (Mrs.) S. Tandon, real sister of the assessee and Anu Malhotra, daughter of assessee's real brother. The sale deed in favour of Dr. (Mrs.) Surjit Tandon was executed for a sum of Rs.80,000 in which Rs. 10,000 were paid to the vendor by one Shri Mittar Sen s/o. Shri Thakus Dass and balance amount of Rs. 70,000 was agreed to be recovered in equal instalments in one year and three months. The possession of the land was admitted having been given to the vendee but the said deed was neither signed by the vendee Smt. Tandon nor anyone was duly authorised on her behalf. The photostat copy of the deed in question and its English translation is available on as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance of Rs. 5,000 the balance of Rs. 25,000 was never received by the assessee though this deed is duly signed by Anu Malhotra but in the light of admission from both the sides it goes to prove beyond doubt that the two deeds were not only sham but worthless and were executed not only for reasons best known to the vendor but as clearly admitted by her to get out of the mischief of Land Ceiling Act. This is also uncontroverted that every after the sale deeds were executed, Mrs. Kaushslya Atma Ram had been showing the said lands in her wealth tax return which were subjected to tax whereas Mrs. Surjit Tandon who was also a wealth tax assessee had never shown the said lands in her wealth tax return except showing the advance of Rs. 10,000 wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said document shows a consideration of Rs. 1,31,400 the sale consideration which passed is Rs. 1,31,400 The cost of the assets as shown is Rs. 12,387. Therefore, the capital gain has been rightly computed at Rs. 1,18,513 which we confirm." About the above finding of the Tribunal, their Lordships observed in their order that while giving the same the Tribunal fell in error. About the aspect the capital gains on agricultural lands consistently we have been relying on Bombay High Court decision reported in (1981) 128 ITR 87 (Bom). We are aware that there ware other decision but most of them stand discussed in the said decision such as (1972) 84 ITR 677 (Guj) and (1975) 98 ITR 237 (Guj) moreover, it becomes a matter of two opinion. While acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . If at all there was any illegality or device. It was to defeat Urban Land Ceiling Act and not to evade tax. We have already held above the Punjab and Haryana High Court decision in the case of Hira Lal Ram Dayal in which registered sale deed has not been accepted to be the last word. 12. The reliance on case of Seth Pushalal Mansinghka (P) Ltd. vs. CIT (1967) 66 (ITR) 159 (SC) becomes academic because once we have held it to be a sham and make-to-believe sale or bogus sale, it would be just academic to go in the dispute regarding accrual or arisal respect the matter. Regarding the contention of the assessee that the value of the said land was returned by the assessee in her wealth tax return, we can be in agreement with the ld. Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
