TaxTMI 
TaxTMI 
2018 (5) TMI 1253
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....nder the head Income from Other Sources. 2. The addition made by A.O. at Rs. 48,57,000 is unjustified, unwarranted and excessive. 3. The learned A.O. erred in holding that assessee has received property without consideration and is liable to be assessed on income at Rs. 48,57,000. 4. The learned CIT(A) erred in upholding addition made by A.O. at Rs. 48,57,000. 5. The assessee denies liability to be assessed to interest u/s 234B of Income Tax Act 1961. Without prejudice levy of interest u/s 234B is unjustified, unwarranted and excessive." 2. Brief facts of the case are that the assessee filed its return of income declaring income of Rs. 32,70,730 on 31st March 2011. The assessee is engaged in the business....
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.... company needed finance of Rs. 3 crore and had approached one finance company (Shriram Chit Fund Ltd.) for the same and were informed that the said finance company would not be able to sanction more than Rs. 1 crore in a single name and had, therefore, transferred the said plot in the name of the assessee for a consideration of Rs. 48,57,000 and the assessee had subsequently obtained loan from the finance company which was transferred to M/s.Infratech Real Estate Pvt. Ltd. The Assessing Officer, however, did not agree with the submissions and came to the conclusion that the said property has been acquired without any consideration and addled the amount of Rs. 48,57,000 to the income of the assessee as income from oth....
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....also becomes evident from the legal Opinion Report, Title Verification and Search Report provided by the Companies Advocate to the Id. AO during the course of assessment proceedings wherein it is clearly mentioned that the owner of the said property is the appellant. 5.3 In view of such clear facts, it is evident that the appellant has received, during the year under consideration, the said immovable property without consideration and hence the said income has to be charged to income-tax under the head of income from other source' u/s.56(2)(vii)(b). I therefore decline to interfere with the findings of the Id. AO. These grounds are therefore dismissed." Against the above order, the assessee is in appeal Tribunal. 4. Before us, the....
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....r and receivable by him from assessee. This can never result into transfer of property without consideration. D) Purchase deed clearly indicates that the transaction is executed on 06/06/2009 and the provisions of section 56(2)(vii) have been brought to statute by Finance (No.2) Act 2009 for the transaction undertaken on after 01/10/2009 and thus provision of section 56(2)(vii) were inapplicable in case of assessee as registered purchase deed is executed on 06/06/2009. In view of above legally there is no scope for assessing any sum u/s 56(2)(vii)of I.T. Act 1961. Reliance on: i) Circular No.05/2010 dated 03/06/2010. E) Aforesaid registered sale deed was executed with an intent to obtain finance by mortgaging of property as fina....