TaxTMI 
TaxTMI 
2019 (6) TMI 97
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....are that the assessee is engaged in the business of trading of table mats, table covers being carried on in the name and style of M/s Mahavir Impex. Return declaring income of Rs. 2,42,003/- was filed which was processed initially u/s 143(1) of the Income Tax Act, 1961 (hereinafter called 'the Act') and subsequently, the case was selected for limited scrutiny through CASS. As per the AIR information received, the assessee had sold certain properties on 31.01.2014 for a sum of Rs. 1,30,00,000/-. The Assessing Officer noted that no long term capital gain had been declared by the assessee in the return of income. As per the information available with the Assessing Officer, the cost of property sold was Rs. 27,66,500/- and after indexat....
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....o made to the income of the assessee as income from other sources and the assessment was completed at an income of Rs. 87,74,195/-. 2.1 Aggrieved, the assessee approached the Ld. First Appellate Authority and challenged the action of the Assessing Officer in making the impugned additions. However, the Ld. Commissioner of Income Tax (Appeals) dismissed the assessee's appeal and now, the assessee is before this Tribunal (ITAT) challenging the additions on the following grounds:- "1. That on the facts and circumstances of the case, as available in the assessment order and on the file of the Assessing Officer, the Learned Commissioner of Income Tax (Appeals), erred in not considering the same, before confirming the addition of Rs. 8....
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....of hearing." 3.0 The Ld. Authorised Representative (AR) submitted that the registration of sale deed, although, has evidentiary value but it is not conclusive. It was submitted that if the assessee, despite the registration of sale deed, is able to prove that no sale has in fact taken place and that the transaction is sham, capital gains tax is not leviable. It was further submitted that the assessee has filed suits in the District Court of Ghaziabad for treating the sale as null and void and for cancellation of the sale deed in view of specific clause in the sale deed which provided that in case the cheques were not honoured, the sale deed shall be deemed to have been cancelled. Our attention was drawn to the relevant pages in the Paper....
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....at the assessee has filed suit for declaring the impugned sale as null and void. We also note that although the sale deed states that the sale consideration has been paid to the assessee, it is the assessee's contention that the cheques have been dishonoured and that the cash component of the sale consideration has also not been received. We also note that the sale deed mentions that the seller i.e. the assessee has received the sale consideration prior to the execution of the sale deed. However, it is further noted that the sale deed also mentions that the sale deed will be deemed to have been cancelled in the event of the cheques being dishonoured. All these facts would necessarily have to be examined by the Assessing Officer before the i....