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TMI Blog2012 (10) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... erately made with an intention to evade tax - laison charges refers to only short-term capital gains – in favor of assessee - IT APPEAL NOS. 403 to 406 OF 2010 - - - Dated:- 22-2-2012 - N. KUMAR AND RAVI MALIMATH, JJ. E.I. Sanmati for the Appellant. S. Parthasarathi, P. Dinesh and Mallaha Rao for the Respondent. JUDGMENT N. Kumar J. - As in all these four appeals, the point that arises for consideration is the same and hence we have taken them up for consideration together and disposed off by this common order. 2. In ITA Nos. 403/2010 and 405/2010, the assessee claimed Rs. 90,00,000/- each as liaison charges. Whereas in ITA Nos.404/2010 and ITA 406/2010, the assessee has claimed Rs. 1,16,00,000/- and Rs. 1,04,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards expenses in respect of short-term capital gains. The Assessing Authority asked the assessees why the liaison charges were claimed against short-term capital gains only and not against long-term capital gains, particularly when the long-term capital gain is claimed as exemption from tax under Section 54EC i.e., the investment in REC Bonds. In response, the assessee submitted that as per the bill given by B.G. Koshy, they are claiming the said amount. The Assessing Officer was not convinced with the said explanation. He was of the opinion that the same has to be apportioned between the short term capital gains and long-term capital gains. Accordingly, he disailowed the liaison charges, which is apportioned to the long-term capital gains. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have the benefit under Section 54EC of the Act. 6. In respect of short-term capital gains, the assessees have claimed liaison charges to the extent set out above. The fact that the sites, which were the subject matter of the sale, were in the occupation of slum dwellers is not in dispute. The dispute is whether they were in occupation of all the sites or only those sites, which resulted in the short-term capital gains. The assessee has paid the money by way of account payee cheque to one Mr. B.G. Koshy to clear the slum dwellers, which amount has been acknowledged by him. According to the assessees, the slum dwellers were in possession of the land, which resulted in short-term capital gains. There is no material on record to show that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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