TaxTMI 
TaxTMI 
2022 (11) TMI 1079
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....f the Income Tax Act, 1961 (hereinafter the 'Act') vide order dated 29.12.2017. 2. The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the action of AO in treating the amount of Rs.6,86,06,500/- received by Shri S. Ramaswamy as income of the assessee under the head 'long term capital gain'. 3. Brief facts are that the AO during the course of assessment proceedings noticed from the computation of income filed by assessee that the assessee has disclosed long term capital gain of Rs.29,81,660/- on account of sale of land admeasuring 6462 sq.ft., comprised in survey No.2/5, block No.22, LB Road, Chennai. The AO noted that the assessee as per sale deed received sale consideration of Rs.7,43,50,000/- an....
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....xt of the letter reads as under:- "a) There was no sharing ratio as such between CT Saraswathi, my grandmother and me. The buyer of the property gave Rs.20 lacs to my grandmother CT Saraswathi and Rs. 30 lacs to me. My grandmother CT Saraswathi disclosed Rs.20 lacs received by her return of income for A. Y. 2015-16 and paid tax on the same. b) After my father's sudden demise on 3.8.2010 the burdern of my family came on my head. I was only 28 years old andI a Doctor by profession an anesthetist working in a hospital. I did not have and even now do not have knowledge of any business especially real estate business. My father has spent considerable energy and money in trying to evict squatters from the property in Adyar. ....
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....cuments filed in respect of payments to the illegal occupants since they are proper documents only. Certain no one would consider buying the land without the illegal occupants being evicted. Hence the land becomes saleable only if the illegal occupants are evicted. " 3.2 The AO required the assessee to explain as to why the sum of Rs.6,86,06,500/- was given to Shri S. Ramaswamy, the PoA holder and assessee replied vide letter dated 11.2.2017 which is being reproduced in the assessment order and for the sake of clarity, we are reproducing again as under:- "As regards the receipt of Rs.6,86,06,500/- by Shri. S. Ramaswamy the power of attorney holder under the Deed of Sale dated 19.2.2015 being Doc. No.433/2015 is concerned, it has....
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....eated the entire amount received by assessee of Rs.7,43,50,000/- and out of his proportionate share of 2/3rd is to be assessed as long term capital gain and assessed by AO rightfully. Aggrieved, now assessee is in appeal before the Tribunal. 5. We have heard rival contentions and gone through facts and circumstances of the case. We noted that the PoA dated 19.02.2015 given in faovur of Shri S. Ramaswamy in connection with the property sold by assessee, the relevant clause as regards to consideration to be received by assessee reads as under:- "14 To do all other acts, deeds, incidental to and or necessary for the proper execution of acts, deeds and powers mentioned herein in relation to the said property. 15. Power to e....
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....,660/- on account of the sale of land, the appellant showed that he had no intention of disclosing the capital gains in full. (v) The appellant's intention to conceal his income is further proved by the fact that the PAN of Shri S. Ramaswamy was only given for TDS purposes as if he was the only recipient of the sale consideration. 5.1 We also noted that the PoA and sale deed both are executed on the same day by assessee as well as the GPA Shri S. Ramaswamy on 19.02.2015. It means the PoA holder has no legal right or interest in the property and entire consideration belongs to assessee or other co-owner. Even otherwise, Shri S. Ramaswamy has not accounted for this consideration in his return of income or no capital gain is de....