TaxTMI 
TaxTMI 
2026 (7) TMI 1576
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....ances of the case, the learned Commissioner (Appeals) erred in confirming the addition under the head capital gains without first adjudicating the foundational issue whether any "transfer" within the meaning of section 2(47), particularly section 2(47)(v). arose in the relevant previous year. The leamed Commissioner (Appeals) failed to appreciate that section 2(47)(v) is attracted only if the transaction is of the nature referred to in section 53A of the Transfer of Property Act, 1882 which requires, inter alia, legally relevant possession and willingness of the transferee to perform the contract, both of which were absent in the present case 2. On the facts and in the prevailing circumstances of the case the learned Commissioner A....
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.... directly evidenced the true legal character of the transaction and demonstrated that the agreement was never acted upon. 5. On the facts and in the prevailing circumstances of the case the learned Commissioner (Appeals) erred in holding that the assessee should have filed a revised retum and, failing that, could not contest taxability There is no estoppel against statute, and income not chargeable to tax cannot be assessed merely because the assessee mistakenly offered it in the return. 6. On the facts and in the prevailing circumstances of the case the learned Commissioner (Appeals) grossly erred in treating section 54F as the core issue, whereas the primary and antecedent issue was the existence of a taxable transfer it....
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....respect of the return of income filed. The assessee has submitted copy of return of income filed along with computation of income, sale deed of land, development agreement, form 26QB and bank statements. The A.O on verification of the data, found that the assessee has entered into Development Agreement with M/s Gokhale Construction on 17.09.2016 for developing plot at Baner and in lieu of acquisition of development rights, the developer was to construct 6 residential flats having total area admeasuring about 326.64 sq. mtrs. Carpet, along with attached terraces total admeasuring about 75.78 Sq. mtrs, Further with right to use six covered car parking spaces for vendor/owner at its entire cost. Whereas the assessee has adopted the value as st....
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.... 6.5 On the issues of Cost of Acquisition claimed by the assessee in respect of Plot sold at Baner, the assessee has admitted vide Point no. 3 of the letter dated 25.11.2019 that the purchase price of Baner Plot is in fact Rs. 1,10,000/- only and not Rs. 1,60,000/- claimed in the I.T. return. The acquisition cost of Rs. 1,61,106/- is the Ready Reckoner cost which has been used for Stamp duty purpose only. Accordingly, the claim of purchase price of Baner Plot is restricted to Rs. 1,10,000/- and cost of acquisition is worked to be Rs. 1,10,000/- + Stamp duty Rs. 6900/-). Penalty proceedings are initiated for underreporting of income. 6.6 Accordingly, the income from Capital Gain is re-worked out as under : Working of Long T....
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....d.AR mentioned that the transaction entered into by the assessee is a transfer within the meaning of section 2(47)(v) of the Act r.w.s 53A of the Transfer of the Property Act. Further the CIT(A) has ignored the vital details and various documents in respect of the genuineness of the transactions. The Ld.AR explained that subsequent to the entering of development agreement on 17.09.2016 due to unforeseen circumstances and legal disputes, the developer has not constructed the flats and the development agreement was cancelled on 9.07.2020. The CIT(A) has erred in not considering the factual aspects of cancellation of development agreement. The Ld.AR mentioned that the CIT(A) has erred in not allowing the claim of exemption u/sec. 54F of the Ac....