TaxTMI 
TaxTMI 
2026 (4) TMI 465
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by the affidavit of her brother (another vendor): then the order of the Ld. AO is infructuous as he already has knowledge that there is no consideration received by the Appellant. 4. The Ld. CIT(A) ought to have considered the affidavit of her brother (one of the vendor), where he has confirmed that there is no sale consideration received by the Appellant, and the order passed by the Ld. AO ignoring this fact is bad in law. 5. The Ld. AO should not have made the addition of capital gains of Rs. 20,24,170/- in the hands of the Appellant as the same does not belong to the Appellant, since the other two vendors are the parties who got benefited from the said transaction and not the Appellant. 6. The Ld. AO erred in considering the market value for calculating capital gains, since the sale consideration itself is not received by the Appellant, as it was only paid by the vendee to other two vendors who are brothers of the Appellant. 7. The Appellant craves to add/leave/alter/modify any other ground of appeal at the time of hearing." 3. The assessee is an individual and filed her return of income for the year under consideration on 28.03.2013 decla....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onsenting party and not received any consideration, then, in the absence of any real income, the addition made by the Assessing Officer is liable to be deleted. The learned Authorised Representative of the Assessee has further submitted that the assessee also filed confirmation in the shape of affidavit of the brothers to the effect that they have received the consideration and nothing was received by the assessee. He has also referred to the bank account statement of the assessee to show that the assessee has not received any consideration from this transaction of sale of property. 4. On the other hand, the learned DR has submitted that as per the sale deed the assessee has signed as a vendor and not as a consenting party. Therefore, the 1/3rd share of the assessee has rightly assessed in the hand of the assessee. The learned DR has further submitted that once the assessee is having a legal title and share in the property in question then, the 1/3rd share of the assessee in the property is assessable to tax in the hand of the assessee. He has relied upon the Orders of the authorities below. 5. I have considered the rival submissions as well as the relevant material on record....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as taken up the case of the assessee for reopening and assessing the capital gain in the hands of the assessee. The Coordinate Bench of ITAT, Pune Tribunal in the case of Vasudha Dattatraya Shinde, Pune vs. ITO, Ward-2(2), Pune in ITA.Nos.1565 and 1566/Pun./2025 vide order dated 28.08.2025 has considered an identical issue in Paras-8 to 10 as under: "8. We have perused the assessment order and the paper book filed by the assessee. It is observed that the impugned property was purchased vide registered Sale Deed dated 06.11.2000. The said property has been purchased by Mr. Dattatraya Pandurang Shinde, the husband of assessee. It is a Bungalow admeasuring 4133 sq.fts. which was purchased by Mr. Dattatraya Pandurang Shinde vide Sale Deed dated 06.11.2000. The details of payments are mentioned in Schedule-II. It has been pleaded by the assessee that entire payment has been made by Mr. Dattatraya Pandurang Shinde. This fact has not been rebutted by ld. DR. It is observed that as per the certificate issued by Pune Municipal Corporation the said Bungalow is in the name of Mr. D.P. Shinde. We have studied the Development Agreement dated 25.01.2014 wherein Mr. Dattatraya Pandurang ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....: "Income-Tax is a levy on income. No doubt, the Income Tax Act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt; but the substance of the matter is the income. If income does not result at all, there cannot be a tax, even though in book keeping an entry is made about a hypothetical income which does not matrialise. Where income has, in fact, been received and is subsequently given up in such circumstances that it remains the income of the recipient, even though given up, the tax may be payable. Where, however, the income can be said not to have resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account." 12. In the present case, the real income (capital gain) can be computed only by taking into account the real sale consideration, i.e., sale consideration after reducing the amount withdrawn from the escrow account. Respondent no.1 has proceeded on an erroneous understanding that the arrangement between the seller and buyer which results in some contingent liabili....