TaxTMI 
TaxTMI 
2022 (5) TMI 359
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....y, the assessee revised its return of income on 23.02.2013 declaring income at Rs. 38,09,925/- on account of withdrawal of interest of Rs. 17,69,625/- paid on bank loan and claimed under the head "property income" which was for business purposes. Short Term Capital Gains: 4. During the year, the assessee sold immovable property for Rs. 9.75 crores but not capital gain was disclosed in the return of income as per the AIR information available with the AO. The assessee explained that he and Sh. Manjit Singh had agreed to sell the property No. XVI/10197/Plot/KH No. 1449-1251, GN 16, Beadon Pura, Ajmal Khan Road, Karol Bagh, New Delhi to BIC Logistics Ltd. on 19.10.2010 through their Director, Sh. Paramjeet Singh who has got authority for purchase of property vide resolution dated 20.10.2010. It was explained that the assessee did not receive any sale consideration from the company as the company did not make any payment. No detail of any payments has been mentioned in the sale deed and there was no details of payment given to Sh. Amarjeet Singh. Before the AO, it was explained that the assessee did not give possession of above property to M/s. BIC Logistics Ltd. as no payment has be....
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....d property was in tenancy with 8 tenants and therefore symbolic possession of the rented portion was handed over to the purchaser. The AO held that the assessee has not included this property in his original return of income, only in revised return of income this property has been included and no rent has been declared from this property. 6. The Ld. CIT(A) deleted the addition on the grounds that there is no evidence of receipt of the sale price handing over of the possession of the property. The Ld. CIT(A) held that the provisions of Section 45(1) and Section 2(47)(v) are not applicable on the facts of the case and since the ownership has not been transferred, the applicant remain to be the owner of the property no capital gains arises. The Ld. CIT(A) also held that the original sale deed has been obtained by the AO from the sub-Registrar wherein the payment schedule has not been reflected. Since, there is no record of receipt of the payment and the space has been left to blank, the Ld. CIT(A) held that facts lead to a conclusion that no payment has been received by the assessee. 7. Aggrieved the revenue filed appeal before us. 8. The Ld. DR argued that having signed the sale d....
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....which the appellant had taken from Satya Prakash Mehta is with the assessee. viii) Affidavit of the assessee of no payment received. ix) Affidavit of the assessee that possession of property has not been given. x) Property is shown in the income tax return of the appellant till today. xi) The purchase value is reflected in the balance sheet of the appellant till today. x) It is undisputed that the appellant is owner of 33% of property No. XVI/10197/Plot/KH No. 1449-1251 Gali No. 16, Beadon Pura, Ajmal Khan Road, Karol Bagh, New Delhi. 10. After carefully going through the facts before us and the pleadings of both the parties, the following picture emerges: 1. The assessee is the 33% owner of the property measuring 357.85 sq.mts. along with constructed area of 500 sq.mts. The remaining 67% is owned by Sh. Manjit Singh. 2. The said property was purchased for Rs. 97.50 lacs on 10.10.2008 from Kanha Estates Pvt. Ltd. 3. Subsequently, the property was sold to BIC Logistics Ltd. for a consideration of Rs. 970.00 lacs on 26.10.2010. 4. The sale deed was registered in the Sub-Registrar office vide Registration No. 10476 in book No. 1 Volume No. 13896 page No. 150 to 160 ....
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....ary to constitute the transfer can be ascertained with reasonable certainty, and the transferee has, in part performance of the contract, taken possession of the property or any part thereof, or the transferee, being already in possession, continues in possession in part performance of the contract and has done some act in furtherance of the contract, and the transferee has performed or is willing to perform his part of the contract, then, notwithstanding that nowhere there is an instrument of transfer, that the transfer has not been completed in the manner prescribed therefor by the law for the time being in force, the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contract: Provided that nothing in this section shall affect the rights of a transferee for consideration who has no notice of the contract or of the part performance thereof.]" 15. This is a classic case wherein the property has not been handed over inspite of the registration do....