TaxTMI 
TaxTMI 
1995 (10) TMI 73
X X X X Extracts X X X X
X X X X Extracts X X X X
....f accounts." 3. At the time of hearing before us the learned counsel for the assessee argued at length. He submitted that Shri J.P. Bahl was the owner of the plot at D-200, Saket,New Delhi. The assessee carried on the construction of a flat on the above plot on behalf of Mr. Bahl. The flat was sold by Mr. Bahl and consideration was received by him. The purchaser had confirmed having purchased the flat from Mr. Bahl. Mr. Bahl sought the permission for sale of the flat from the Competent Authority under the IT Act. The assessee has entered into an agreement of construction of the flat and there was no power of attorney in favour of the assessee-company ever executed by Mr. Bahl. He referred to the copy of the agreement between the assessee a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that the flat was sold by the assessee-company. Therefore, the AO was fully justified in taxing the surplus arising from the sale of the flat in the case of the assessee. He further submitted that the fact that the assessee had advanced Rs. 3,00,000 to Mr. Bahl itself shows that the assessee had interest in the property. As the assessee was only to construct and hand over the flat to Mr. Bahl. Mr. Bahl should have advanced to the assessee against the construction expenses to be incurred by the assessee-company. He also submitted that the director of the assessee-company are related to the assessee. Accordingly, she submitted that the orders of the authorities below be upheld. 5. We have carefully considered the arguments of both the sides.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessee. When the question was put by the AO that on21st Nov., 1990, he has stated to have executed power of attorney, agreement to sell, will and relinquishment of right in favour of Safeway Builders Pvt. Ltd., then what are the circumstances compelling you to deny this. Then he replied he had vague recollection and when he intended to sell the plot of land he had contacted a few agents who had showed him 5-6 forms which are required to be executed before the sale deed. Those were not executed. Thus, the only evidence in favour of the Department is the statement of Mr. J.P. Bahl dt.21st Nov., 1990, which had been retracted by himself during the cross-examination by the assessee's counsel before the AO. The Revenue has not brought on record....