2005 (2) TMI 466 - AT - Income Tax

Summary

Issues:
Appeals by Revenue against CIT(A) order deleting capital gains amount in two cases.

Analysis:
In the case of Shri Ladu Ram, the appellant was a UDC with income from salary and long-term capital gain from land acquisition. The appellant denied purchasing the land, claiming it was bought in his benami name by others. Both appellants initially declared capital gains but later revised their returns beyond the time limit, leading to AO ignoring the revisions. The AO assessed Shri Mool Chand protectively and Shri Ladu Ram regularly. The CIT(A) found that the capital gains declared by the appellants were actually investments made by Shri Ram Kishan Agarwal, leading to double taxation. The CIT(A) deleted the additions based on this finding.

In the appeal, the Departmental Representative argued that the AO's orders should have been upheld due to the late revised returns. However, the Authorized Representative relied on relevant court decisions supporting the CIT(A)'s order. The ITAT found that both appellants admitted being benamidars for Shri Ram Kishan Agarwal, who declared the capital gains in his return accepted under VDIS. As a result, the ITAT agreed with the CIT(A) that this constituted double taxation, upholding the CIT(A)'s order and dismissing the appeals filed by the Revenue.