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TMI Blog2013 (2) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... e from the real estate and liable to be brought under tax. - Decided in favor of revenue. Receipt of extra unaccounted money - held that:- No document has been produced to show that has paid Rs. 90,00,000/- to the assessees in respect of remaining extent of land. The stray and inconsistent statement made by N.K. Mohta cannot be accepted. In the absence of any document, the statement of N.K. Mohta that he has paid a sum of Rs. 90,00,000/- to the assessees in cash cannot be accepted. Accordingly, we hold the second substantial question of law in favour of the assessees. - IT APPEAL NOS. 1133, 1148 & 1150 OF 2006 - - - Dated:- 14-8-2012 - K. SREEDHAR RAO AND B. MANOHAR, JJ. M. Thirumalesh for the Appellant. R. Ramamurthy for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kh per acre as per the memorandum of agreement and token advance of Rs. 20 lakhs has been received. Thereafter, the assessees had acquired and delivered 31.19 acres of land as part performance of MoU to the said Sri N K Mohta at the rate of Rs. 4 lakh per acre. The said land was purchased as per the agreement dated 22.2.1993 from Smt. Rathnamma at the rate of Rs. 1,61,000/- per acre and 8 acres of land from Sri Mudappa. 4. A notice was issued to the respondents/assessees and also to the respondents in these appeals. In response to the notice issued under Section 148 of the Act, filed a reply stating that their income is less than Rs. 40,000/- and therefore no books of account has been maintained and no returns of income has been filed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5. The Revenue being aggrieved by the order dated 3.5.2002 passed by the Commissioner of Income-tax (Appeals) preferred appeals before the Income-Tax Appellate Tribunal. The Income-Tax Appellate Tribunal after considering the matter in detail dismissed the appeals filed by the revenue and upheld the order passed by the Commissioner of Income-tax (Appeals). The Revenue being aggrieved by the order dated 24.3.2006 passed by the Income-tax Appellate Tribunal has preferred these appeals. 6. The above appeals have been admitted for considering the following substantial questions of law: (1) Whether the Tribunal was right in holding that the agreement holder Mr B Krishnappa, Mr Lakshmappa and his wife Mrs. Parvathamma having received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... K Mohta has been recorded, wherein he has stated that he has paid Rs. 90 lakh by way of cash to the various parties on the direction of the present assessees. The said Sri N K Mohta was cross-examined by the counsel appearing on behalf of the assessees. The said Sri N K Mohta has not disputed the MoU dated 23.3.1995 and registration of 31.19 acres of land. The reasoning assigned by the Income-Tax Appellate Tribunal dismissing the appeals is contrary to law. Even though, the transaction is not yet completed, by registration of 31.19 acres of land, the assessees have earned the profit of Rs. 75,22,525/-. Hence, the order passed by the Income-tax Appellate Tribunal confirming the order passed by the Appellate Tribunal cannot be sustained and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the impugned order does not call for interference and sought for dismissal of the appeals. 9. We have carefully considered the argument addressed by the parties. 10. As per the Memorandum of Understanding dated 23-3-1995, ("MoU" for short) the assessees have agreed to acquire and deliver 63 acres of agricultural land to Mr. N.K. Mohta at the rate of Rs. 4,00,000/- per acre. Pursuant to the said MoU, 31.19 acres of land was registered in the name of nominee of N.K. Mohta. Out of 31.19 acres of land, 23.19 acres of land was purchased from Smt. Rathnamma and 8.00 acres of land was purchased from Mr.Mudappa at the rate of Rs. 1,61,000/- per acre and the said land was sold as per the MoU at the rate of Rs. 4,00,000/- per acre. The As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Smt. Rathnamma and 8.00 acres belongs to survey of Babusabupalya I have received Rs. 76.50 lakhs for the balance of 30 acres of land from Sri N.K Mohta out of the amount due at Rs. 1.2 crores." Hence, it is clear that in respect of 39.19 acres of land, the transaction is complete and the assessees have received full consideration from Sri N.K. Mohta, as per the MOU. For the remaining extent of land, N.K. Mohta has filed a suit and contended that he has paid some amount in respect of the remaining extent of land. The transaction is not yet completed. Hence, we hold that the transaction in respect of 39.19 acres is completed and each of the assessees have got the income of Rs. 25,07,508/- in the said transaction. Hence, the said amount ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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