Capital Gains Dispute: Payments to Third Party Not Considered Direct Income Under Section 48 Tax Provisions

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ITAT ruled that payments made to Hemali Resorts by the buyer do not constitute consideration accruing to the assessee under Section 48. The tribunal found no evidence that the amounts were received by or legally accrued to the assessee. The payments were made directly to Hemali Resorts for pre-existing contractual obligations, and the transaction was conducted through banking channels with appropriate TDS. The PCIT's second invocation of Section 263 was deemed impermissible as it amounted to a mere change of opinion without presenting new material evidence. The assessee's appeal was consequently allowed, affirming that no tax leakage or prejudice to revenue existed.....