9911796707
TMI Blog2013 (6) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... in the business of creative advertisement agency print and production. Assessee filed its return of income for A.Y. 2006-07 on 24.12.2006 declaring total income of Rs. 1,91,543/-. The case was selected for scrutiny and thereafter the assessment was framed under Section 143(3) vide order dated 31.10.2008 and the total income was assessed at Rs. 6,72,566/-. Aggrieved by the order of Assessing Officer, assessee carried the matter before CIT(A). CIT(A) vide order dated 25.02.2010 granted partial relief to the assessee. Aggrieved by the aforesaid order of CIT(A), the Assessee is now in appeal before us and has raised the following grounds:- 1.1 The order passed u/s.250 on 25.2.2010 for A.Y.2006-07 by CIT(A)-XX, A'bad, confirming the addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been taken at Rs.16.70 lacs rather than Rs.8,12,500/- and capital gain should have been worked out accordingly after considering investment of Rs. 17.10 lacs in REC Bonds for Rs. 17.10 lacs. It is, therefore, prayed that the additions upheld by the CIT(A) may kindly be delete The effective ground is with respect to capital gains and since all the grounds are interconnected they all are considered together. 4. During the course of assessment proceedings, Assessing Officer noticed that assessee had shown long term capital gain of Rs. 4,91,773/-. The Assessee was asked to substantiate its claim. The assessee interalia submitted that it had made an investment in property in 1998-99 where it had paid Rs.7,77,500/- and the property was sold fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the property. Mr. Jagdhish Khurana has no legal right or share over the property. So under sub section 47 of section 2, the transfer of property has been effected between Khurana Communications Pvt. Ltd. i.e. the assessee and the buyer. As evident from legal documents submitted by the assessee and the provisions of section 2(47), the property has been transferred by the assessee. Now, once it is established that the transfer as defined in sub section 47 of section 2 of the Act has taken place between two parties, computation of Long Term Capital Gain in the hands of transferor has to be made under provisions of Section 48." From the facts, it is clear that the appellant was the legal as well as real owner .and also held the possessio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther submitted that in the books of the assessee the cost of property was shown at Rs. 8,12,500/-. He also placed on record the copy of the audited balance sheet for F.Y. 1998-99 at page 44 of the paper book. The learned A.R. also placed on record the copy of computation of income of Mr. Jagdish Khurana for A.Y. 2006-07 at page 97 of the paper book. He also placed on record the confirmation of Mr. Khurana at page 98. The learned A.R. thus submitted that the Assessing Officer has wrongly treated the entire capital gain to be taxed in the hands of the Assessee. 7. The learned D.R. on the other hand submitted that in none of the documents like sale deed or possession letter, the name of Mr. Jagdish Khurana appears and therefore the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We therefore are of the view that this aspect needs examination at the end of Assessing Officer. Assessing Officer is therefore directed to examine as to how the gains have been treated in the hands of Mr. Jagdish Khurana. In case the same is not taxed in the hands of Mr. Khurana, the Assessing Officer is free to proceed as per law. Thus the appeal of the assessee is allowed. ITANo. 1322/Ahd/2012 9. Assessing Officer vide order dated 29.3.2011 levied penalty of Rs. 1,61,913/- under Section 271(1)(C) on account of addition of capital long term capital gain made in the hands of the assessee. CIT(A) vide order dated 30.04.2012 upheld the action of Assessing Officer. Aggrieved by the order of CIT(A) assessee is now in appeal before us. 10. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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