TaxTMI 
TaxTMI 
2019 (11) TMI 917
X X X X Extracts X X X X
X X X X Extracts X X X X
....s not subjected to tax in assessment year under appeal, challenging the addition of Rs. 30 lakhs and Rs. 3,58,067/- and interest under sections 234A, 234B and 234C of the I.T. Act, 1961. 2. Briefly the facts of the case are that return of income in this case was filed on 14.09.2010 declaring income of Rs. 43,41,970/-. The return was revised declaring income of Rs. 41,72,080/-. The assessment was reopened under section 148 of the I.T. Act. In this case information was received from ADIT, Investigation that in the course of investigation of suspicious transaction report in the case of Shri Ranish Karki, it came to light that assessee had signed a sale agreement with Shri Rajnish Karki for the sale of property L-1/13, Hauz Khas Enclave, New....
X X X X Extracts X X X X
X X X X Extracts X X X X
....found correct. Further computation was made. It was also found from calculation of short term capital gain of assessee, she deducted an amount of Rs. 60 lakhs under the Head "Furniture and Fittings", in support of which, copy of Agreement was filed. It was found that the expenditure is related to the period before the acquisition of the property was made. From the submission of the assessee. it was seen that expenditure made by the assessee was in two parts i.e., Rs. 30 lakhs in 2006 and Rs. 30 lakhs in 2008. Show cause notice was issued to assessee that furniture and fixture was not allowable deduction. The A.O. ultimately made addition of Rs. 30 lakhs. Further, it was found that some expenses were made in the property in the period prior ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e I.T. Act provides transfer of capital asset which includes the transactions involving the allowing of possession of any immovable property to be taken or retained in part performance of contract of the nature referred to in Section 53A of the Transfer of Property Act. Learned Counsel for the Assessee has filed copy of the Registered Agreement to Sell Dated 16.01.2009 in support of the aforesaid property whereby the assessee has agreed to sell the property to the purchaser Shri Rajnish Karki, subject to part payment and part possession have been handed over to the purchaser. This agreement to sell is registered with the Sub Registrar. Thus, conditions of Section 2(47)(v) of the I.T. Act are satisfied in the sense that there is a transfer o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....joyment as a purported owner thereof, the maxim "noscitur a sociis" has been repeatedly applied by Supreme Court. A recent application of the maxim is contained in Coastal Paper Limited v. Commissioner of Central Excise, Visakhapatnam, (2015) 10 SCC 664 at 677, para 25. This maxim is best explained as birds of a feather flocking together. The maxim only means that a word is to be judged by the company it keeps. The idea was to bring within the tax net, transactions, where, though title may not be transferred in law, there was, in substance, a transfer of title in fact." 5.2. Considering the facts of the case in the light of above discussion, it is clear that agreement to sell was executed and registered on 16.01.2009 whereby the part pos....