Tribunal orders further investigation in property sale case

The Tribunal directed the Assessing Officer to conduct further investigation to determine the actual consideration received by the assessee in a case involving long term capital gain on the sale of property. Discrepancies in the sale transactions of co-owners were noted. The revenue's appeal was dismissed due to insufficient evidence, while the assessee's appeal was allowed for statistical purposes.

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Issues involved: Cross appeals filed by the assessee and revenue against the order of CIT(A) for the assessment year 2006-07 regarding the addition of long term capital gain on the sale of property.

Analysis:
1. Assessee's Appeal: The AO added Rs. 43,50,000 as long term capital gain on the sale of the assessee's share in the property, alleging that the consideration received was higher than the amount stated in the sale deed. The CIT(A) upheld the AO's decision. The assessee contended that they only received Rs. 2.66 crores as per the sale agreement and no additional consideration was received. The AR argued that the higher price shown by another co-owner was due to coercive tactics. The Tribunal found discrepancies in the consideration received by the co-owners and directed the AO to investigate further to determine the actual amount received by the assessee, considering the registration value and lack of concrete evidence supporting the AO's claim.

2. Revenue's Appeal: The revenue contested the deletion of Rs. 10,13,000 on account of sale consideration of land by the CIT(A). The CIT(A) dismissed the addition due to lack of concrete evidence. The revenue's appeal was dismissed based on CBDT instruction, as the tax effect was below Rs. 3 lakhs. Consequently, the appeal of the assessee was allowed for statistical purposes, and the revenue's appeal was dismissed.

In conclusion, the Tribunal directed the AO to conduct a thorough inquiry to ascertain the actual consideration received by the assessee, considering discrepancies in the sale transactions of co-owners. The revenue's appeal was dismissed due to insufficient evidence, and the assessee's appeal was allowed for statistical purposes.

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