Tribunal upholds decision on Long Term Capital Gain assessment

The Tribunal upheld the CIT(A)'s decision in assessing Long Term Capital Gain (LTCG) at Rs. 1,28,92,569 arising from the transfer of residuary right in land at Rs. 7 Crores. The appeal was dismissed as the Tribunal found no grounds for interference, emphasizing the legal ownership and consideration received by the appellant. The judgment highlighted that the full value of consideration as per the registered sale deed was Rs. 7 Crores, leading to the conclusion that the appellant legally received this amount, resulting in the dismissal of the appeal against the LTCG assessment.

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Issues:
Assessment of Long Term Capital Gain (LTCG) arising from transfer of residuary right in land.

Analysis:
1. The appeal was filed against the order of CIT(A) assessing LTCG at Rs. 1,28,92,569 arising from the transfer of residuary right in the land at Rs. 7.00 Crores. The assessee declared total income at Rs. 1,03,39,200 for the relevant Assessment Year. The AO observed discrepancies in the sale consideration for a plot of land, leading to the assessment of LTCG at Rs. 7 Crores.

2. The assessee explained that the property was initially gifted by the mother and later sold after a joint development agreement. The AO considered the sale consideration at Rs. 7 Crores, as reflected in the registered sale deed, despite the initial advance received by the mother. The AO calculated LTCG based on this amount in the assessment order.

3. The CIT(A) dismissed the appeal, emphasizing that the full value of consideration as per the registered sale deed was Rs. 7 Crores. The CIT(A) analyzed the transaction history, highlighting that no overriding title existed, and the mother did not retain the advance received. The CIT(A) concluded that the amount retained by the mother was part of the sale consideration, and the appellant legally received Rs. 7 Crores.

4. During the appeal, the AR argued that the assessee received only Rs. 6.25 Crores, which was offered for taxation. However, no evidence was presented to show that the amount received by the mother was declared for tax. The conveyance deed and receipt of consideration supported the Rs. 7 Crores sale price acknowledged by the assessee.

5. The Tribunal upheld the CIT(A)'s order, noting that the assessee executed the sale documents as the absolute owner, acknowledging the Rs. 7 Crores consideration. The Tribunal found no grounds for interference, and the appeal was dismissed.

In conclusion, the judgment analyzed the sale transaction, emphasizing the legal ownership and consideration received, leading to the dismissal of the appeal against the assessment of LTCG.

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