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TMI Blog1995 (10) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... fore us the learned counsel for the assessee argued at length. He submitted that Shri J.P. Bahl was the owner of the plot at D-200, Saket,New Delhi. The assessee carried on the construction of a flat on the above plot on behalf of Mr. Bahl. The flat was sold by Mr. Bahl and consideration was received by him. The purchaser had confirmed having purchased the flat from Mr. Bahl. Mr. Bahl sought the permission for sale of the flat from the Competent Authority under the IT Act. The assessee has entered into an agreement of construction of the flat and there was no power of attorney in favour of the assessee-company ever executed by Mr. Bahl. He referred to the copy of the agreement between the assessee and Mr. Bahl. He also referred to the copy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany. Therefore, the AO was fully justified in taxing the surplus arising from the sale of the flat in the case of the assessee. He further submitted that the fact that the assessee had advanced Rs. 3,00,000 to Mr. Bahl itself shows that the assessee had interest in the property. As the assessee was only to construct and hand over the flat to Mr. Bahl. Mr. Bahl should have advanced to the assessee against the construction expenses to be incurred by the assessee-company. He also submitted that the director of the assessee-company are related to the assessee. Accordingly, she submitted that the orders of the authorities below be upheld. 5. We have carefully considered the arguments of both the sides. It is undisputed that Mr. J.P. Bahl was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO that on21st Nov., 1990, he has stated to have executed power of attorney, agreement to sell, will and relinquishment of right in favour of Safeway Builders Pvt. Ltd., then what are the circumstances compelling you to deny this. Then he replied he had vague recollection and when he intended to sell the plot of land he had contacted a few agents who had showed him 5-6 forms which are required to be executed before the sale deed. Those were not executed. Thus, the only evidence in favour of the Department is the statement of Mr. J.P. Bahl dt.21st Nov., 1990, which had been retracted by himself during the cross-examination by the assessee's counsel before the AO. The Revenue has not brought on record any of the so-called documents like pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the revised return and has shown the capital gain and has been subjected to capital gains tax in his hands. It is also stated by the assessee's counsel that the order of the CIT(A) in his case with regard to the computation of capital gain has become final and was not subjected to further appeal by the Revenue. These documentary evidences, proved beyond doubt that Mr. J.P. Bahl was the owner of the plot and the assessee had only constructed the flat on behalf of Mr. J.P. Bahl. The plot and the flat were transferred by Mr. Bahl and the consideration was received by him. No documentary evidence has been brought on record by the Revenue to establish that the assessee-company had purchased this plot and it was the owner of the building construc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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