TaxTMI 
TaxTMI 
2023 (2) TMI 702
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....tal gains in respect of a single transaction can happen only in one assessment year and not in two assessment years. 3. On facts and circumstances of the case the first appellate authority has not considered the written submissions dated 03.02.2022 filed along with enclosures in all its aspects in deciding the appeal and the above submissions may also be taken in to account in deciding the appeal. 4. For the above grounds and other grounds to be urged during the hearing of the appeal, the appellant prays that the appeal be allowed in the interest of equity and justice." 3. The brief facts of the case are that, the assessee is a retired college professor, did not filed his return of income for the assessment year 2014-15. The assessment has been reopened on the basis of information available with the Department, as per which income chargeable to tax had been escaped assessment on account of understatement of his share of sale consideration and consequent capital gain from sale of property. Therefore, notice u/s. 148 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), dated 31.03.2018 was served on the assessee. In response to the notice, the asse....
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....jected arguments of the assessee and sustained additions made by the AO towards computation of capital gains from transfer of property. The relevant findings of the AO are as under: 4. Appellate findings: I have carefully considered the facts of the case, reassessment order dated 22.12.2019 u/s 143(3) r.w.s. 147 from the ITO, Ward-1(4), Salem, submission on the merit of the case filed by the appellant during the appellate proceedings. 4.1 It is seen that appellant has filed the present appeal on 22.02.2020 against the reassessment order u/s 143(3) r.w.s. 147 dated 22.12.2019. This appeal is filed out of date and not filed within 30 days from the service of the order. However, the appellant has filed a request letter seeking condonation of delay in filling the appeal. In his letter the appellant has stated the facts and reasons as to why he has. failed to file the appeal within due date. I have carefully considered the reasons and circumstances as stated by the appellant and I am fully satisfied that it is a fit case for condonation of delay. In view of the above discussion I hereby condone the delay in filing the appeal and this appeal is admitted for adj....
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....he appellant. 4.3 The appellant has contested and challenged the addition of Rs. 13,99,344/made by the AO on account of long term capital gain and has argued that the action of AO is bad in law. The appellant has argued that he was duped by the purchaser and true capital gain has already being shown by him in his ROI. The appellant has also stated that power of attorney was transferred to third party thereby owner of the property looses entire control over the property and such control gets transferred to the person in whose favour the power of attorney has been executed. Based on the factual position with regard to power of attorney the appellant has claimed that it has only received 54,70,500/- as sale consideration (113rd share of the appellant) which has been duly disclosed. Further, AO has also contested the invocation of section SOC of the IT Act by the AO and has argued that matter should have been referred to valuation cell as provided u/s 55A of the IT Act. 4.4 I have duly considered the reply of the appellant and findings of the AO in his assessment order from the perusal of assessment order it is seen that AO has made due inquiry u/s 133(6) from the Sub....
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....4-15. Therefore, the AO has rightly computed capital gain when the assessee has transferred the property in the impugned assessment year. 8. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. The fact borne out from record clearly indicates that the assessee along with his two brothers has executed the POA on 16.11.2012 in favour of Shri. A. Sreedharan and relinquished right and interest in the property in favour of the purchaser for a consideration of Rs. 54,70,500/-. It is further strengthened by the sale receipt dated 02.01.2013, as per which the entire sale consideration of Rs. 54,70,500/- has been paid by the seller right from 15.11.2012 by way of six cheques in favour of three sellers and partly by cash. If you go by the recitals of POA, coupled with sale receipt dated 02.01.2013, there is no dispute with regard to the date of transfer of property, because the assessee has relinquished their right in favour of the buyer and received full amount of consideration in the assessment year 2013-14. Therefore, in our considered view, deemed transfer referred in to section 2(47)(v) of the Act, took place in the a....