TaxTMI 
TaxTMI 
2020 (1) TMI 966
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.... of the case. 2. The Commissioner of Income Tax (Appeals) failed to appreciate that the purported sale deed is a sham document and has no legal value. 3. The Commissioner of Income Tax (Appeals) failed to appreciate that the consideration that is essential for any contract has not passed between the parties to the contract. 4. The Commissioner of Income Tax (Appeals) failed to appreciate that the pronote mentioned in the sale deed had never been executed. 5. The Commissioner of Income Tax (Appeals) failed to appreciate that the parties had jointly executed a document annulling the sale. 6. The Commissioner of Income Tax (Appeals) failed to appreciate that a document must be interpreted taking in to consideration the whole set of facts surrounding the transaction. 7. The Commissioner of Income Tax (Appeals) ought to have appreciated that the alternate contention that the transaction is not a sale but only a gift. 8. In any event the order of Commissioner of Income Tax (Appeals) is highly unjust and acts as a great hardship on the appellant. 9. The appellant craves leave for raising further grounds at the time of hearing." 3. The brief facts of the case are that asse....
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.... return of income filed with Revenue , which led AO to also bring to tax LTCG to the tune of Rs. 6,47,697/- on this sale transaction after invoking provisions of Section 50C of the 1961 Act, while framing assessment u/s 143(3) of the 1961 Act. The assessee did not raised any dispute at higher appellate platforms with respect to this action of the AO in bringing to tax long term capital gains on sale of 5 cents of land and thus the matter rested at peace there it self with the action of the AO in bringing to tax long term capital gains earned by assessee on the sale of this land while framing assessment u/s 143(3) of the 1961 Act. 3.3 The AO further observed that Government has compulsorily acquired 40.5 cents of land for Rs. 1,01,455/- and long term capital gains arising on this transaction was also not offered to tax by assessee which led AO to bring to tax long term capital gains earned by assessee to tax to the tune of Rs. 10,378/- . The AO however did not invoke provisions of Section 50C of the 1961 Act while bringing to tax long term capital gains on compulsory acquisition of land by Government . This matter also rested at peace as the assessee did not raise any dispute at hi....
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.... property was by registered sale deed. It was submitted that consideration stated in the said sale deed was to the tune of Rs. 33,43,000/- out of which only Rs. 5,43,000/- was received by assessee and for balance amount of stated consideration , an pronote of Rs. 28 lacs was issued by husband of assessee in favour of assessee. It was submitted that admittedly registered sale deed was executed by assessee(wife) in favour of her husband. It was submitted that Section 50C was invoked by AO which is not a subject matter of challenge. The only contention raised is that this sale deed executed by assessee in favour of her husband was merely a sham transaction and said balance consideration of Rs. 28 lacs which was to be discharged by husband by way of execution of pronote in favour of the assessee was never realized by assessee . Further, it is claimed that the said amount of part consideration of Rs. 5,43,000/- received at the time of said sale was also repaid by assessee to her husband through banking channel . The assessee has placed on record copy of affidavit dated 18th December 2010 to contend that this sale was a sham transaction . The copy of bank statement of Tamilnad Mercantile....
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....r husband . The assessee has also enclosed registered settlement deed dated 12.05.2014 wherein her husband has settled this property in favour of the assessee. The assessee has filed some of the documents in loose form while some documents are filed in paper book. These documents are placed in file. Even for documents filed in paper book, no proper certification is made as to which of these documents were filed before AO and/or learned CIT(A). Some of the documents are even executed post appellate order passed by learned CIT(A) and are in the form of additional evidences filed for the first time before tribunal. The Ld.Counsel for the assessee has pleaded that sale was only entered into with an object to reflect market value of the property for claiming compensation from government as the said land was under acquisition by Trichy Corporation for setting up of integrated Bus Stand. It is prayed by learned counsel for the assessee itself that in view of peculiar factual matrix of the case and in order that evidences be verified by authorities below , the matter may be restored to the file of the AO for fresh denovo assessment on merit in accordance with law. The Ld.DR, on the other h....
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....d at the time of execution of sale deed. The assessee has produced bank statement to prove that even Rs. 5.43 lacs was repaid by her to her husband through banking channel. The copy of bank statement of Tamilnad Mercantile Bank Limited, Branch Tiruchirapalli bearing bank account number 09100050053204 in the name of assessee, to contend that an amount of Rs. 5,43,000/- so received on 03.04.2007 from husband of the assessee was refunded on 02.05.2007 to husband is also enclosed by assessee which is placed in file. Thus, contentions are made that this entire sale transaction of 25 ½ cents of land to her husband was a sham transaction and the objective being to bring on record market value of the said land in order to get compensation from Government against acquisition of her land by Trichy Corporation for setting up integrated bus stand. The evidences to the effect that her land was under acquisition by Government is placed on record. It is also brought on record that she participated in proceedings before authorities for determination of compensation against acquired land. The assessee's land to the tune of 40.5 cents of land was compulsorily acquired by Government at a compe....