TaxTMI 
TaxTMI 
2023 (3) TMI 860
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....of Sri K.Anil Kumar of Vijayawada for a consideration of Rs.17,00,000/- as against the market value of Rs.20,00,000/- through regd. Doc. No.8/2011 dt.04.01.11. The assessee did not file his return of income for A.Y.2011-12 u/s 139 of the Income Tax Act, 1961 (in short "Act"). The assessment was reopened by issue of notice u/s 148 on 28.03.2018, since the assessee has not disclosed the capital gains arising from the sale of the said property by filing a return of income. The assessee did not file his return of income in response to the notice u/s 148. The AO, therefore, completed the assessment u/s 148 r.w.s. 147 on 22.11.2018, determining the total income at Rs.13,45,910/- under the head "income from long term capital gains" arising from the sale of immovable property. 3 Aggrieved, the assessee preferred appeal before the CIT(A) and the Ld.CIT(A), after careful consideration of the facts of the case and the written submissions of the assessee, partly allowed the appeal of the assessee. 4. On being aggrieved, the assessee preferred appeal before the Tribunal. The assessee pleaded to replace the grounds raised along with Form No.36 with the revised grounds as under, as they are....
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.... pleaded that the same may be annulled. 7. Per contra, the Ld.DR relied on the order of the Ld.CIT(A) and submitted that the AO has rightly charged capital gains to tax in the hands of the assessee since the vacant possession of the property was delivered to the assessee. The Ld.DR further submitted that as per translated copy of the sale agreement cum GPA dated 04.04.2007, it was mentioned in the last paragraph of page No.3, that the property was delivered at the time of execution of GPA. Therefore, the contention of the assessee that the property was not delivered to him on 04.04.2007 is not tenable and contrary to his pleadings. The Ld.DR further contended that the assessee himself sold the property which is evident vide last para of page No.2 of the sale deed that the assessee was not deriving income proportionate to the value of the property from his property. In view the financial needs of the assessee, the property was proposed to be sold by the assessee and since the purchaser (Shri K.Anil Kumar) has come forward to pay the highest price, the assessee has agreed to the same and the property has been sold by the assessee for a consideration of Rs.17 lakhs. The recitals....
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....getting property income by the 2nd party, for his family better thing require of money the below schedule property to sell made efforts, you have offered more amount than others, for which 2nd one convinced and the schedule property for a total sale consideration of Rs.17,00,000/- (Rupees Seventeen Lakhs only) Out of the total amount you have paid in the name of 2nd among us, through Vijaya Bank, Basheerbagh, Hyderabad Br. vide No.128936 dt.31.12.2010 through DD paid Rs.6,00,000/-, and today at the time of execution of this sale deed you have paid to 2nd party by cash Rs.11,00,000/- total as per 1st para sale consideration of Rs.17,00,000/- from you among us 2nd party received in full." Therefore, after considering the recitals mentioned in the sale agreement cum GPA and sale deed, there is no dispute that the assessee purchased the property for a consideration of Rs.5,00,000/- and took possession of the property on 04.04.2007 itself and sold the property for Rs.17,00,000/- to Shri K.Anil Kumar on 04.01.2011. Therefore, the oral contention of the assessee that he acted only as an agent on behalf of the owners is not at all acceptable since the recitals clearly establish....
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....and or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer : Provided that where the date of the agreement fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer: Provided further that the first proviso shall apply only in a case where the amount of consideration, or a part thereof, has been received by way of an account payee cheque or account payee bank draft or by use of electronic clearing system through a bank account ^51a[or through such other electronic mode as may be prescribed^52], on or before the date of the agreem....