2010 (6) TMI 901 - HC - Income Tax

Summary

Issues involved:
The issues involved in this case are:
1. Whether the Income Tax Appellate Tribunal was correct in deleting the addition of Rs.28,92,750/- made by the Assessing Officer and confirmed by the Commissioner of Income-Tax (Appeals)-IV, Surat?
2. Whether the order of the Income Tax Appellate Tribunal was without reasons, contrary to the evidence and material on the record of the case and perverse or not?

Summary:

Issue 1:
The appellant-revenue challenged the order made by the Income Tax Appellate Tribunal regarding the addition of Rs.28,92,750/- to the assessment of a Hindu Undivided Family for the Assessment Year 2001-2002. The appellant contended that the amount was received in relation to an agreement to sell land, and therefore should be taxed as capital gains. However, the Tribunal found that the agreement was never acted upon, was unsigned, and the property remained in the name of the assessee. The Tribunal concluded that no income arose from the unsigned document and deleted the addition.

Issue 2:
The Tribunal's decision was based on the lack of corroborating evidence to establish that a transaction had taken place, apart from the unsigned document. The Assessing Officer had concluded that a transaction had occurred, but the Tribunal disagreed, stating that the unsigned document could not form the basis of a transaction in law. Since there was no other evidence to support the transaction and no proof of possession being handed over, the Tribunal found no taxable income. Therefore, the Tribunal's decision to delete the addition was upheld, and the appeal was dismissed due to the absence of any substantial question of law.