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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 ..... Choksi and Mr. Laxman A. Pagare. We find that the address of Laxman A. Pagare has been mentioned by the Commissioner of Income-tax (Appeals) in his order and which was also supplied to the Assessing Officer, but the Revenue authorities ignored to ascertain his assessment status. We cannot accept the submissions 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. 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 Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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., marketable title for the sale of land as the payment is for services rendered by him are to obtain the marketable title for transfer of property. 3. The appellant also submits that it is a case where the property was unsaleable due to encr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sues 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. Laxman A. Pagare that in case of sale of land from parcels held by the family 60 per cent. of the proceeds shall be paid to the two ladies and 40 per cent. shall be retained by Mr. Laxman A Pagare. 5. Consequent to this agreement of power of attorney two plots were sold, one for ₹ 28,22,000 of which ₹ 16,93,200 came to the ladies and ₹ 11,28,800 was retained by Mr. Laxman A. Pagare. The other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of law and that the assessee could only be charged to tax, on the income that has accrued to her. 13. The authorised representative submitted that by virtue of the power of attorney, Laxman A. Pagare received 40 per cent. of the sale proceeds and the remaining 60 per cent. was divided at 30 per cent. each by the two ladies. This fact remains uncontrovert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 gross sale proceeds. Not only, this was factually incorrect, because, the quantum had been the result of a legal document executed between the ladies and Laxman A. Pagare and more than that the other parties declared their share, which was accepted by the Department. 20. We cannot accept the argument of the Departmental representative for rest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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