TaxTMI 
TaxTMI 
2015 (4) TMI 723
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....for the year under consideration was filed by the assessee declaring capital gains arising from the said transaction, a notice under S.148 was issued by the Assessing Officer to the assessee on 7.1.2011, which remained uncomplied with. Subsequently, notices under S.142 were issued by the Assessing Officer, in response to which the assessee appeared on 5.12.2011 for hearing before the Assessing Officer. During the course of hearing, the assessee was called upon by the Assessing Officer to explain why capital gain arising from the transfer of property at Survey no.28 Rasoolpura, Secunderabad should not be assessed in her hands by adopting the market value of Rs. 3,99,65,000. In reply, it was stated by the assessee that she is not aware of the said transaction and that she has not received any consideration out of the said transaction. The assessee however could not produce any evidence such as confirmation from buyers etc., to substantiate her claim and filed only some copies of encumbrance certificates. She also accepted that the signature appearing on the sale deed was her own signatures. Keeping in view this averment made by the assessee as well as her failure to produce any evide....
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....nter comments offered by the assessee on the remand report, other submissions made by the assessee and the comments offered by the Assessing Officer in the remand report as well as the material available on record, the learned CIT(A), held for the following reasons given in paragraph 4.9 of his impugned order, that the assessee was holding rights over the property transferred to the extent of 60% and capital gains arising from transfer of such rights was chargeable to tax in her hands as capital gains- "4.9. On the other hand, the consistent submissions of the appellant was that she was not the owner of the property, except holding to certain constructed part of the land located at Survey No.28, Rasoolpura, and was paying electrical charges for the property with such electric connection in her name, and the said facts do not entitle her to the ownership of the property admeasuring 3964 sq. yards, which was shown to have been sold vide the sale deed dated 03.04.2008, for a total consideration of Rs. 25,00,000 out of which Rs. 10,00,000 was received in cash by Mrs.D.Sriatha Kamakshi, W/o. Srinivas Rao, as against Rs. 15,00,000 DD issued in her name, which were also fraudulently enca....
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....amp duty purposes by invoking the provisions of Ss.50C, however, was not upheld by the learned CIT(A) for the following reasons given in paragraph 4.10 of his order- "4.10 The next issue comes into picture is the quantum of sale consideration. The Assessing Officer in assessment order presumed to have referred to the provisions of sec.50C of the Act, for adopting the value of the property under reference, at fair market value, for arriving at the sale value of Rs. 3,99,65,000/-. In this regard, it is relevant to refer to the provisions of Sec.50C of the Income-tax Act, which read as under: "(1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted (or assessed or assessable) by any authority of State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted (or assessed or assessable) shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. (2) Without prejudice t....
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.... Officer was having all the avenues to explore the possibility of valuation of said property, by ascertaining the correct ownership of the said property under reference. However, the AO chosen to go by apparent information as originated from the sale deed, without appreciating the facts associated with the said transaction. Hence, it is reasonable to hold that based on the fact that the verifiable information indicate that the property under reference does not have the value as referred to the SRO and in absence of the same the value as indicated in sale deed, is directed to be adopted. Further, the shares of the appellant in the said transaction is held to be confined to 60%. Accordingly, the Assessing Officer is directed to compute the taxable capital gains, on the above lines, after allowing the proportionate cost of acquisition. This ground of appeal is treated as partly allowed." 6. Accordingly, the Assessing Officer was directed by the learned CIT(A) to compute the capital gains chargeable to tax in the hands of the assessee by taking her share at 60% of the total sale consideration of Rs. 25 lakhs. Aggrieved by the same, the assessee and Revenue both are in appeals before t....
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.... of the assessee' case has also been considered and analysed by the learned CIT(A) in the light of the remand report submitted by the Assessing Officer and comments offered by the assessee thereon, before coming to the conclusion that the assessee, even though was not the absolute owner of the property transferred, was holding certain rights over the said property, which constituted a capital asset within the meaning of S.2(14) of the Act. We have also perused the relevant documents placed on record before us in the paper book filed by the assessee and find from a perusal of the relevant agreement referred to as 'Agreement of Sale-cum-General Power of Attorney with Possession' placed at pages 51 to 63 of the paper-book that the same was entered into by the assessee jointly with Smt. D. Shrilatha Kamakshi, as Vendors/Principals, with M/s. Sri Vinayaka Constructions as Purchasers/Attorney Holders. The said agreement was not only signed by the assessee, but she personally presented herself before the concerned Government authority for registration, after duly establishing her identity on the basis of Identity Card issued by the Election Commission of India. In the said agreement, asse....