2016 (2) TMI 343

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....umstances of the case and in law, the ld.CIT(A) erred in holding that the sum of Rs. 2.16 crores received by the assessee without consideration, is liable to be assessed under the head "capital gains"" and not under the head income from others sources"; (i) The ld. CIT(A) ignored the fact that in the remand report, the AO had clearly disputed the documents submitted before the appellate authority clearly asserting that the documents are nothing but an after thought; (ii) The ld. CIT(A) ignored the fact that during the assessment proceedings, the assessee had filed copy of he will executed by his father where there were no notings of two sisters and mother of the assessee endorsing the property in favour of the assessee. Ho....

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....assessee received sale consideration of Rs. 2.16 crores from M/s Lake View Developers in exchange of the bungalow as per the agreement dated 29.8.2005. As per the said agreement, the plot with bungalow named as "Verma Niwas" was transferred by the assessee to the developer and in exchange of the same, the assessee received a sum of Rs. 67,98,000/- + three residential flats valued at Rs. 1,48,02,000/-. The total consideration thus was received of Rs. 2.16 crores, which was treated by the assessee as Long Term Capital Gains (LTCG). The assessee's claim was that he had become the owner of the said property in view of the "Will" of his father late Shri L H Verma and Late Taraben L Verma (mother of the assessee). The father of the assessee as pe....

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....ng with the copy of "Will" and order of probate of the Hon'ble High Court and other evidences. The remand report was called upon by the ld. CIT(A) in this respect. The assessee also made request to the AO that if he has any doubt about the signature of the sisters on the copy of the "Will" relinquishing their right in favour of the assessee, he could get the same examined through Forensic Laboratory. The assessee also offered that to verify the facts, the AO should examine sisters of the assessee. However, the AO without making verification etc. simply opined that the sisters of the assessee had relinquished the right on latter date to the date of exchange agreement. He observed that in the date of transfer, the assessee was not the owner o....

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....n. There is ample evidence on the file that ultimately the property i.e. bungalow in question devolved upon the assessee which was transferred by the assessee and the income earned by the assessee there from is to be assessed as capital gains. Even for the sake of arguments if we presume that the assessee had sold the property in which he had no title or interest but after having sold the property he got right or title in the property then also he is estopped under the law from saying that the sale agreement earlier entered by him cannot be acted upon or that the sale deed was invalid. Under such circumstances, the presumption under the law is that the assessee had sold his interest in the entire property even if he has acquired such owners....