9911796707
TMI Blog2015 (8) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... eration from transfer of property of the Company namely M/s A.R. Ltd. amounting to Rs. 11,00,000/- I taxable in the hands of the appellant. 2. For that the Ld. C.I.T.(A) admitted in para 3 of the appellate order that the assessee received a sum of Rs. 11,00,000/- 'which represents a portion of sale proceeds of Rs. 35,00,000/- in respect of sale of property belonging to M/s A.R. Pvt. Ltd.' 3. For that when the property is admittedly belonged to the a person other than the assessee 'capital gains,' if any, arising out of sale/transfer of the same is assessable in the hands of the owner of the property and not in the hands of the assessee. 4. For that Officers of the department should not take advantage of assessee's bonafide ignorance of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the assessment order and the submissions of the appellant. In the first ground of appeal the appellant has contested the action of the Assessing Officer of taxing the income of the appellant under the head Income from Other Sources and denying exemption u/s. 54EC. It is seen from the record of the case that the appellant has himself filed return of income showing capital gain of Rs. 11,00,000/-. He had claimed exemption u/s54EC on the aforesaid gain. On the one hand the appellant has claimed exemption u/s. 54EC and on the other hand the Ld. Authorised Representative has argued that no capital gain has accrued in the hands of the appellant. Therefore, there is contradiction in the argument of the Ld. Authorised Representative. In the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the counsel and perused the record. Ld. Counsel for the assessee submitted that it is undisputed fact of the case that sale consideration was received by the assessee in consideration of property sold which belonged to the company in which the assessee is a shareholder and Director. In this connection, Ld. Counsel for the assessee submitted that in response to notice issued by the Assessing Officer the purchaser had confirmed that she had purchased the property from the company, i.e. AR Pvt. Ltd. Ld. Counsel for the assessee further contended that there is no dispute that the said property sold belonged to the company in which the assessee is director and shareholder. Ld counsel for the assessee submitted that since the bank account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cepts that the money received did not belong to the assessee, he cannot at the same time tax the same in the hands of the assessee as his income from unexplained sources. Moreover, the purchaser on enquiry from AO has confirmed that property purchased by here belonged to the company M/s A.R. Ltd. 9. It is settled law that company is an artificial juridical person which has its own identity and it is taxable as such. Hence, for its property sold it is the company which is taxable and not the assessee who received the money on behalf of the company. Now the Ld. Counsel for the assessee's plea is also cogent that the receipt of sum of money from the company could be taxable in the hands of the assessee who is shareholder and director only und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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