2016 (8) TMI 951

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....y. In the course of assessment proceedings, the Assessing Officer (AO), on the basis of AIR information that there was a sale of a property at 1601, Era IV, Marathon Nextgen, Veer Santaji Marg, Lower Parel, Mumbai 400013 (hereinafter referred to as the 'said property') for Rs. 2,12,00,000/-, observed that no such sale was reflected in the assessee's return of income for the period under consideration. On being queried in this regard, the assessee submitted that the said property/flat was purchased by the assessee's husband Shri Arjun Bulchandani out of funds from his account and the said flat was shown in his Balance Sheet. It was submitted that though the flats were in the joint names of the assessee, Sri Arjun Bulchandani was the owner of....

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....s co-owner of the property. The assessment was completed under section 143(3) of the Income Tax Act, 1961 (in short 'the Act') vide order dated 13.12.2011 wherein the income of the assessee was determined at Rs. 48,78,865/- . 2.2 Aggrieved by the order of the assessment for A.Y. 2009-10 dated 13.12.2011, the assessee preferred an appeal before the learned CIT(A)-2, Mumbai challenging the AO's action in bringing to tax 50% of the STCG of Rs. 45,38,254/- on sale of the said property. The learned CIT(A) disposed off the assessee's appeal vide order dated 09.11.2012 directing the AO to delete the addition of Rs. 45,38,254/- made in the assessee's hands in respect of 50% of the STCG on sale of the said property. 3.1 Revenue, being aggr....

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....taxes were paid as the capital gains was set off against STCL from sale of some shares. It was prayed by the learned D.R. that the order of the learned CIT(A) be reversed and that of the AO be restored in the matter. 3.3.1 Per contra, the learned A.R. for the assessee supported the finding of the learned CIT(A) in the impugned order in directing the AO to delete the addition of Rs. 45,38,254/- on account of assessing 50% of the STCG on sale of the said property in the assessee's hands. The learned A.R., reiterating the submissions put forth before the authorities below, submitted that while the said property was held in the names of the assessee, her husband Sri Arjun Bulchandani and Shri Ashwin Bulchandani, it was purchased totally out of....

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....the learned CIT(A)'s finding/order, deleting the addition made by the AO of taxing 50% STCG on sale of the said property, being factually correct ought to be upheld and Revenue's appeal dismissed. 3.4.1 We have heard the rival contentions of both the parties and perused and carefully considered the material on record. The issue before us is whether or not the 50% of STCG of Rs. 45,38,254/- arising on sale of the said property is exigible to tax in the assessee's hands. 3.4.2 The facts of the matter as emanate from the record are that the AO in the course of assessment proceedings, on the basis of AIR information observed that the capital gains on sale of the said property in the period under consideration was not disclosed in the assessee....