1979 (9) TMI 47

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....1,394. The ITO determined the total income at Rs. 1,42,560. The assessee had executed on 14th June, 1962, a registered sale deed in favour of a co-operative society known as the Mandi Dabwali Haryana Handmade Paper and General Works Production-cum-Sale Co-operative Industrial Society Ltd. purporting to sell for Rs. 1,31,400, the assessee's gram-dal and cotton ginning factory at Dabwali. During the assessment proceedings, the assessee pleaded that the said sale was a sham transaction and there was no capital gain accruing to the assessee. The ITO disbelieved the assessee's version. The appeal by the assessee before the AAC failed. In second appeal, the Tribunal considered the registered sale deed as a sacrosanct document bearing the se....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....his petition having been accepted, the Tribunal was directed by this court to refer the following question of law in I.T. Reference No. 98 of 1974 for its opinion under s. 271(1)(a) of the Act : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the penalty under section 271(1)(a) of the Income-tax Act, 1961, was exigible ? " As regards the proceedings under s. 271(1)(c) of the Act, on the direction of this court, the following question of law has been referred to this court for its opinion in I.T. Ref. No. 100 of 1974 : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the penalty under section 271(1)(c) read with section 274(2) wa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dentiary value has to be attached to a registered document but the said document cannot be a final word in the matter. It has to be remembered that capital gains accrue only if there is a sale or any other transfer of the capital asset and if the assessee is able to prove that in fact no sale took place in that case no capital gain accrued which could be assessed to income-tax. If the assessee, even in the face of the registered sale deed, is able to prove by cogent evidence and satisfy the Tribunal that no sale in fact took place, in that case, the Tribunal has to come to the conclusion that there was no capital gain. As is apparent from the observations made in the order of the Tribunal, the Tribunal was under the misapprehension that the....