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TMI Blog2015 (8) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income-tax (Appeals) erred in confirming the order of the learned Income-tax Officer on the ground that by executing power of attorney in favour of Mr. Laxman Pagare to retain 40 per cent. of sale proceeds cannot be said to an expenditure incurred wholly and exclusively in connection with the 'impugned transfer'. In spite of the fact that it is a charge on property for obtaining the marketable title to sale of property. 2. The appellant submits that the payment to Shri Laxman Pagare be treated as expenditure incurred wholly and exclusively in connection with such transfer and otherwise as the cost of acquisition of the asset to claim, i.e., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Laxman A Pagare (LP) instituted legal proceedings on encroachers and some of the tenants who were not paying rent on regular basis, for their eviction and/or compromise. 4. In 1992, Mr. Harkishandas Dalal expired leaving behind his natural legal heirs, i.e., his wife Mrs. Virmati H. Dalal and his daughter Ms. Geeta Choksi. Being the two ladies, living in Mumbai, could not attend to or give time to the issues and legal proceedings initiated by the Late Mr. Harkishandas Dalal, decided to give irrecoverable power of attorney (POA) in favour of Mr. Laxman A. Pagare to look after the interests of the two ladies in the suits and other negotiations with tenants and encroachers. As an incentive it was agreed between the two ladies and Mr. Laxma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als), who after considering the submissions and incorporating the facts and details in his orders, sustained the view of the Assessing Officer, that the capital gains had to be computed on gross figures and not on the figures/sale proceeds actually received by the assessee. 10. Against this order of the Commissioner of Income-tax (Appeals), the assessee is now before the Income-tax Appellate Tribunal. 11. In the integram, the assessee Mrs. Virmati H. Dalal also expired, leaving the only legal heir, Ms. Geeta Choksi, who is now pursuing the appeal. 12. At the time of hearing before us, the authorised representative reiterated the entire sequence of events and submitted that the course adopted by the Revenue authorities was against tenets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmissions of the Departmental representative that the case be restored to the Assessing Officer to find out the details of assessment in the case of Mr. Laxman A. Pagare and/or Ms. Geeta Choksi. According to us, the Revenue authorities missed the bus long back. 18. We also find from the APB, the assessment status of Ms. Geeta Choksi, recipient of the other 50 per cent. of 60 per cent., whose return of income was accepted by the Assessing Officer and in the subsequent year, on the same facts, assessment was framed under section 143(3) accepting the returned income. 19. Under these factual circumstances, we are of the opinion that the Revenue authorities erred in adding back remaining 20 per cent. to equate the figure of 50 per cent. of gro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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