TaxTMI 
TaxTMI 
2021 (10) TMI 205
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....essee was admittedly one of the directors in a company M/s.Swadesh Villas Pvt. Ltd. incorporated on 19-04- 2006 along with many other co-directors including one Shri R.Sreenivasulu. Both these persons were also partners in a partnership firm in the name and style of M/s.Sree Projects. Both the foregoing concerns had been carrying out real estate development activity. The department conducted a survey action on 26-06-2008 in the foregoing twin entities business premises. The assessee appears got recorded his Section 131 statement therefore on 02-07-2008 offering to admit an additional income of Rs. 2,90,00,000/- already comprising of cash amount of Rs. 11,11,946/- along with a plot of 8500 sq.yds., and land of 1 acre 6 guntas in Gudur Village, Nagulapally Village, Mahaboobnagar District; respectively. 3. The Assessing Officer noticed during the course of scrutiny that this assessee had admitted NIL income in his return dt.26-09-2008. He therefore went by the assessee's foregoing admission u/s.131 of the Act to make the impugned additional income addition of Rs. 2.90 crores. The CIT(A) has granted part relief to him as under: "For AY.2008-09 the assessee filed nil return of income....
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....family members or his nominees. (j) That in the following cases the Hon'ble Courts have held that the statement recorded during survey has no evidentiary value. i) Ashok Manilal Thakkar Vs.ACIT (2005) 279 ITR (AT) 143 ii) S.Khader Khan Son (2008) 300 ITR 157 (Mad) (k) That the agreement entered into was not honoured by the first party (i.e., Sri R. Sreenivasulu, Sri Shaik Abbas, Sri T. Shashi Kumar and Sri W. Ramana Rao) and the mediators have entered to settle the deal which resulted in lodging the police complaint in Punjagutta Police Station and also the civil case against the other directors. (l) The Assessing Officer simply believed the statement of Sri R.Sreenivasulu without verifying the source of funds in the hands of Sri R. Sreenivasulu as to how he mobilized such huge amount of cash to make settlement in cash for the cheques taken back. (m) That the Assessing Officer showed clear bias in rejecting the credible and cogent evidence produced by the appellant about the non receipt of the pending settlement of consideration in lieu of cheques taken back, but accepting a mere statement of Mr.R.Sreenivasulu, who could not provide sufficient funds in bank (when he....
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....) the compulsory acquisition thereof under any law; or (iv) in a case where the asset is converted by the owner thereof into, or is treated by him as, stock-in-trade of a business carried on by him, such conversion or treatment ;] [or] [(iva) the maturity or redemption of a zero coupon bond; or] [(v) any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882) ; or (vi) any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of, any immovable property. [Explanation 1].-For the purposes of sub-clauses (v) and (vi), "immovable property" shall have the same meaning as in clause (d) of section 269UA] [Explanation 2.-For the removal of doubts, it is hereby clarified that "transfer" includes and shall be deemed to have always included disposing of or parting with an asset or any....
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.... land of 8500 square yards, and 1 acre 6 guntas the Assessing Officer is directed to adopt the value as per the registered document as this is higher than the SRO Value. 5.7 Therefore, the capital gains is to be brought to tax for A.Y.2008-09 and the consideration will be, cash of Rs. 75,00,000/- plus the registered value of plots & land i.e., Rs. 68,75,000/- total amounting to Rs. 1,43,75,000/-* 6. In result, the appeal is partly allowed". This leaves both the parties aggrieved. 4. We have given our thoughtful consideration to rival pleadings and find no merit in either parties' identical grievance(s). This is for the precise reason that the Revenue cannot be stated to an aggrieved party once the CIT(A) has directed the Assessing Officer to go by the stamp price of the twin immoveable properties received by the assessee in the compromise agreement/settlement deed dt.10-12-2007 with the co-directors as even the corresponding statutory provision i.e., Section 50C also adopts the very price only to be the maximum sale consideration for computing capital gains. We thus decline the Revenue's instant sole substantive grievance as well as the main appeal ITA No.125/Hyd/2015. 5. Th....