TaxTMI 
TaxTMI 
2016 (4) TMI 1052
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....e has filed her return of income on 25.9.2008 declaring total income at Rs. 4,46,733/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the AO that the assessee has bought two pieces of agriculture land admeasuring 5059 sq.meters on 23.12.2000 and 3.1.2001 in village Gavier, Dist. Surat for consideration of Rs. 9.75 lakhs from Shri Hitesh Lalitchandra Laiwala, HUF. These lands have been sold on 13.3.2008. In the sale deed the sale price of the land was shown at Rs. 15 lakhs, whereas the said property was valued by the stamp valuation authorities for the purpose of stamp duty payment of Rs. 27,92,568/-. The ld.AO....
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....consideration cannot be changed equivalent to the sale consideration determined for the purpose of payment of stamp duty. The ld.AO has rejected this contention of the assessee and made addition. 4. Appeal to the ld.CIT(A) did not bring any relief to the assessee. 5. With the assistance of the ld. representatives, we have gone through the record carefully. 6. The ld.counsel for the assessee made reference to the following decisions in order to bring his point at home that capital assets can be of different kinds. The section 50C is not applicable on every kind of capital asset. i) DCIT Vs. Tejinder Singh, 19 taxmann.com 4 (Kol Trib) ii) Atul G. Puranik Vs. ITO, 132 ITD 499 (Mum Trib) iii) Smt. Kishori Sha....
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....unt of consideration for transfer and assign the assessee's right, title and interest under the agreement entered into with Anandji Haridas for purchase of this property and Rs. 90,000/- being the amount of money deposited with M/s.Kanga and Co., which was received as return of the advance money. The dispute arose whether the sum of Rs. 5,00,000/- received by the assessee represents the money received on transfer of a capital asset and required to be assessed under the head "capital gains". The Hon'ble Bombay High Court has made an elaborate discussion on the issue and ultimately held that the money received by the assessee for assigning of its rights acquired under the agreement for obtaining a sale deed is for transfer of capital asset an....
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....ning its rights under the agreement with Anandji Haridas in favour of M/s. Advani and Batra. These rights, which had been assigned in favour of M/s. Advani and Batra, clearly fell within the wide definition of capital asset in clause (14) of s. 2 of the I.T. Act, 1961." 8. Next decision on this issue is of Hon'ble Bombay High Court in the case of CIT Vs. Vijay Flexible Containers, 186 ITR 0693 (Bom). In this case, the facts are that the assessee-firm entered into an agreement with Captain B.V. Dhuru on 10.11.1959 whereunder, the assessee has agreed to purchase from the said Dhuru and others immovable property described in Schedule thereto at the rate of Rs. 35 per sq.yard to be paid in the manner set out. Upon execution of the said agree....
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....m had entered into a contract to purchase certain immovable property from Smt.Ratan Bai Tongia for Rs. 1,05,000/-. An agreement to that effect was entered into between the parties on 25.9.1970. The agreement was not carried out by the seller and hence, the assessee-firm was compelled to file a suit for specific performance of the contract against the owner of the property in civil court. Ultimately, the dispute was resolved by a compromise when the litigation was pending before the Hon'ble High Court. The vendee received a sum of Rs. 14,85,000/-. This amount was received in the accounting year relevant to the Asstt.Year 1987- 88. The AO has treated the receipt of Rs. 14,85,001/- to be in the nature of capital gains in the hands of the asses....