TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 1365
X X X X Extracts X X X X
X X X X Extracts X X X X
....Attorney holder and not the owner of the said plot. 3. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other." 3. The only grievance of the assessee in this appeal relates to the confirmation of addition of Rs. 46,50,000/- made by the AO. 4. Facts of the case in brief are that the AO initiated the proceedings u/s 147 of the Income Tax Act , 1961 (hereinafter referred to as the Act). In response, the assessee submitted that the return already filed on 19.01.2011 be treated as filed in response to the notice u/s 148 of the Act. The AO noticed that during the course of assessment proceedings for the assessment year 2011-12 in the case of one Sh. Deepak Pal Singh, Piplanwala (Hoshiarpur), it was noticed that as per Power of Attorney dated 19.03.2010 executed by Smt . Harsharan Kaur, w/o Late Sh. Gurbaksh Singh s/o Sh. Puran Singh, Sagran Mohalla, Adampur registered in assessee's favour, the assessee transferred full rights in respect of a plot situated in Village-Khawaspur Tehsil and Distt. Hoshiarpur registered undisputedly without any monetary conside....
X X X X Extracts X X X X
X X X X Extracts X X X X
....een transferred to the power of attorney holder. 5. There is no documentary evidence has been brought on record by Ld. AO showing that assesse purchased land from Smt. Harsharan Kaur. 6. There was no material before the Ld. AO which could led to conclusion that the power of attorney in favour of assessee was a device to camouflage activities and to defraud the Revenue." 7. The ld. CIT(A) after considering the submissions of the assessee observed that the assessee was given general Power of Attorney by Mrs. Harsharan Kaur which was duly registered with the Registrar on 19.03.2010 and that vide this general Power of Attorney, Mrs. Harsharan Kaur had given general Power to one Sh. Kundan Singh for 19 ½ Marlas and to the assessee for 2 kanal 13 ½ marlas and the assessee vide the said Power of Attorney acquired many rights including right to sell and that the assessee sold a plot of land measuring 5 marla 15 Sq. ft . to one Sh. Deepak Pal Singh who further constructed house thereon and sold the same to one Sh. Amit Kumar for Rs. 14,00,000/-. 8. The ld. CIT(A) did not find merit in the submissions of the assessee and sustained the addition of Rs. 46,50,000/- by ob....
X X X X Extracts X X X X
X X X X Extracts X X X X
....herefore, the addition made by the AO u/s 56(2)(vii)(b) of the Act for the reason that the assessee received property without consideration, so stamp duty value of the property was to be assessed as "income from other source" in the hands of the assessee was not justified because the basic conditions of the said Section were not fulfilled as the assessee had not sold any property and did not receive property but was made just an attorney holder of the property in question and no investment was made by the assessee in the property. Therefore, the addition made by the AO and sustained by the ld. CIT(A) was not justified. The reliance was placed on the following case laws: * Suraj Lamp & Industries (P) Ltd. Vs State of Haryana 340 ITR 001 (SC) * ACIT Vs Janka Raj Chauhan (2006) 102 TTJ 297 (Asr.) * Gunpreet Singh Vs ITO, Ward-1(5), Haryana in ITA No. 2731/Del/2018, order dated 27.09.2018 (Del. ITAT) 10. In his rival submissions, the ld. DR strongly supported the orders of the authorities below. 11. We have considered the submissions of both the parties and perused the material available on the record. In the present case, it is an admitted fact that the assessee was given....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ity or breach of trust is a matter between the donor and the donee." An attorney holder may however execute a deed of conveyance in exercise of the power granted under the power of attorney and convey title on behalf of the grantor. ------------------- ------------------- 18. We have merely drawn attention to and reiterated the wellsettled legal position that SA/GPA/WILL transactions are not 'transfers' or 'sales' and that such transactions cannot be treated as completed transfers or conveyances. They can continue to be treated as existing agreement of sale. Nothing prevents affected parties from getting registered Deeds of Conveyance to complete their title. The said 'SA/GPA/WILL transactions' may also be used to obtain specific performance or to defend possession under section 53A of TP Act. If they are entered before this day, they may be relied upon to apply for regularization of allotments/leases by Development Authorities. We make it clear that if the documents relating to 'SA/GPA/WILL transactions' has been accepted acted upon by DDA or other developmental authorities or by the Municipal or revenue authorities to effect mutation, t....