2015 (8) TMI 972

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....chase on the sale consideration of Rs. 46,00,000/- in cash from her husband in proper state of mind without any coercion, in ignoring the facts that the AO has given sufficient opportunity to explain. 2. The CIT(A) has ignoring the provision laid down under section 69C of the I.T.Act while deleting the addition which not come in the way of the unexplained investment made by the assessee and also ignoring the facts narrated in the original sale deed. 3. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any grounds of appeal at any time before or during the hearing of this appeal." From the above grounds, it is gathered that the only grievance of the department relates to the deletion of addition ....

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....There was actually no transaction. Moreover, there was no transfer of property in the same of the assesee by giving the physical possession". 4. The assessee also furnished her affidavit and the affidavit of her husband stating therein that no sale of property took place and that no cash / money was either given or received by any of them. The A.O., however, was not satisfied from the submissions of the assessee and made the addition of Rs. 46 lakh by invoking the provisions of Section 69C of the Act. 6. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and submitted as under :- "- Sh. Jagdish Rai Khanna, Husband of Smt. Uma Khanna inherited the above said property from his father Late Sh. Gopi Nath Khanna. - Sh.....

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.... Paged 213 to 234 no. 2361 be assigned as null & void. - The Learned Judge also observed that a copy of this order be filed before the Sub-Registrar's office, GZD, so that the said Sale-Deed be cancelled. Copy of the order of the Learned Addl. Civil Judge-III is enclosed for your kind perusal. - Accordingly, Sh. Jagdish Rai Khanna & Smt. Uma Khanna have also moved an application dated 22.10.2010 before the Learned Sub-Registrar GZD, stating that the aforesaid Sale-Deed as per the order of the Learned Sub- Judge, GZD be cancelled with immediate effect. Copy of the said application is also enclosed. - A Copy of Family Tree is enclosed. - Since, the order of the Learned Upper Civil Judge (C.D.) Court, Ghaziabad was delivered after ....

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.... Court, the addition u/s 69 C amounting to Rs. 46 Lakhs may kindly be deleted." 6. The Ld. CIT after considering the submissions of the assessee deleted the addition by observing in para 7 of the impugned order as under :- "I have carefully gone through the submissions made by the appellant as well as the findings of the Assessing Officer. Since the transaction narrated above has been declared null and void by the Civil Judge, Ghaziabad, therefore the issue of taxation of the said transaction in the hands of the appellant does not arise. At the most, the AO is at liberty to examine whether any gift tax is invocable in the above transaction in view of the fact that no consideration passed hands but was done for reasons other than commerci....