9911796707
TMI Blog2011 (8) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... ue shown is only Rs.4,00,000/-, which everyone knows is notoriously low. - Appeal of department is allowed. - IT Appeal NO. 305 OF 2010 - - - Dated:- 2-8-2011 - C.N. RAMACHANDRAN NAIR AND P.S. GOPINATHAN, JJ. P.K.R. Menon and Jose Joseph for the Appellant. V.V. Asokan and R. Jaikrishna for the Respondent. JUDGMENT Ramachandran Nair, J. The only question raised in the five connected appeals filed by the Revenue is whether the Tribunal was justified in cancelling assessments on the respondent assessees made on unexplained investment under Section 69 of the Income-tax Act (hereinafter referred to as the Act for short). 2. We have heard learned Standing Counsel appearing for the appellant Revenue and learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly) per cent. Based on the statements recorded by the Chief Enforcement Officer, the Income Tax authorities issued notice to Shri. M. Gopinath, who wrote Annexure-C letter followed by Annexure-D to the Deputy Commissioner of Income Tax in his own letter head, which are produced in ITA No. 305/2010. In Annexure-C letter, Shri. Gopinath reiterates all what he has stated before the Chief Enforcement Officer that the land belonging to the family members was sold at an agreed price of Rs. 16,00,000 (Rupees sixteen lakhs only) per cent. However, in Annexure D letter, Shri. Gopinath expressed his fears that if the contents of Annexure C letter are leaked out, there may be problem for sale of the balance portion of the property. Admittedly, the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commission and other brokerage received by him from the shipping business, about which no detailed explanation was offered. The Income Tax Officer overruled the objection raised by the respondents and based on the evidence available in the form of written statements recorded by the Chief Enforcement Officer from two of the joint sellers - and Annexure C letter written by Shri. Gopinath and corroborative evidence of credits in the joint account of Shri Gopinath and his wife and the return filed and payment of tax by Shri. Gopinath, assessments were made under Section 69 of the Act on the excess amount paid by the respondents over the value accounted in the sale deeds by the respondents in the purchase of property. 4. In the case of Shri. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is an educated person and he has no dealings in foreign exchange and he had nothing to conceal from the Enforcement Department. So is the position with his brother Shri. Jayakumar, who also gave confirmatory statement to the effect that the entire amount credited in the Bank account is sales proceeds received from the sale of their family property. Besides the statements given to the Chief Enforcement Officer, Shri. Gopinath through Annexure-C above referred wrote a letter to the Deputy Commissioner of Income Tax in his own letterhead stating true facts that sale of the property is at the rate of Rs. 16,00,000/-(Rupees sixteen lakhs only) per cent. The genuineness of this letter and the correctness of the contents therein are reconfirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondents, and the Assessing Officer rightly rejected it. 7. Above all, this Court has taken note of the notorious fact that invariably in every sale deed, sale consideration declared is much below the market value, which is mainly to avoid huge stamp duty and registration charge totalling 13.5% of the value. In this case, it is seen that the property sold is situated in the most prime location in Ernakulam city i.e. on the side of M.G. Road, where the value shown is only Rs.4,00,000/-, which everyone knows is notoriously low. When sellers are only interested to receive market value for their land, they are unconcerned whether there is evasion of income tax or stamp duty by the purchasers. In this case, the seller happened to be an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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