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TMI Blog2016 (4) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... iness of brokerage income and derives income from salary. The assessee filed his return of income on 13.10.2008 showing the total income at Rs. 1,12,000/- and agriculture income of Rs. 97,340/-. The return of income was selected for scrutiny assessment under CASS and notice u/s 143(2) was issued on 31.08.2009, on the basis of AIR information available in the case of assessee in respect of sale of immovable property. The notice was issued on 30/11/2010 and served upon the assessee. 3. The Assessing Officer observed that assessee and his coowner Becharbhai Jivrajbhai Vastarpara purchased agricultural land at plot no.218/A (2300 sq.m.) and 218/B (4646 sq.m.) situated at T.P. Scheme No.49 at Katargam, Surat for a sum of Rs. 5,25,000/- and the assessee and co-owner spent Rs. 60,000/- on Stamp Paper and Registration Fees which made the total investment in these two plots of land at Rs. 5,85,000/-. As per the AIR information available on record, the Assessing Officer observed that during Financial Year 2007-08 these two plots of land have been sold to M/s Dhara Construction and Dhirajlal P. Tejani for a total sum of Rs. 1,11,25,000/-. There was no long term capital gain income shown in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rbhai Jivrajbhai 575500 Jitendrabhai Harjibhai 3050000 Vastarpara Desai Babubhai Nagjibhai gajera 1250000 Sureshkumar Babubhai 1250000 Gajera 6.3 The assessee and other owners had entered into a Satakhat for sale of land on 04.03.2005 with the confirming parties for Rs. 11,51rOOO/- The final document, in favour of M/s Dhara Construction and Dhirajlal PopatlaiTejani was executed on 28.03.2008. The names of 4 confirming parties were not entered in the Registered Sale Deed since as per Stamp Duty Regulations if, the names of confirming parties are entered, the double Stamp Duty and Registration charges are required to be paid. Therefore, the purchaser accepted the name of 2 land owners and omitted the names of 4 confirming parties to avoid payment of double stamp duty. 6.4 The Surat Municipal Corporation had put water works reservation on these lands as the land is for agriculture. The confirming parties had agreed to make representation before the Revenue Department of the State Government to release the Reservation on land, to carry out. the procedure of N.A. before the Collector Surat and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itendrabhai Harjibhai Desai, 3) Babubhai Nagjibhai Gajera and 4) Sureshkumar Babubhai Gajera. When the Satakhat was executed there were certain reservations and issues in land which were required to be cleared before any payment is made by confirming parties to two coowners. The issues in land were cleared in A.Y. 2007/08 and the payment was made by confirming parties to two co-owners in AY 2007-08 and both the co-owners had shown Short Term Capital Gain in their Return of Income which were accepted by the Assessing Officer. The above referred four parties further have sold the plots of land in the issue under appeal before entering registered sale deed in favour of M/s Dhara Construction and Dhiraj P. Tejani on 28.03.2008. The consideration mentioned in this sale deed dated 28.03.2008 was Rs. 1,11,25,000/- out of which Rs. 11,57,000/- were shown to have been received by the assessee i.e. Harijibhai P. Vastarpara and his co-owner Becharbhai Jivrajbhai Vastarpara and the remaining amount of Rs. 99,74,000/- was received by the four confirming persons Gopalbhai Pragjibhai Vastarpara, Jitendrabhai Harjibhai Desai, Babubhai Nagjibhai Gajera & Sureshkumar Babubhai Gajera. All the four c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o four confirming parties in A.Y. 2007/08, the Short Term Capital Gain in case of assesses and other co-owner is attracted in A.Y. 2007/08 and assessee has rightly shown the same in his Return of Income. The other co-owners Becharbhai Jivjrajbhai Vastarpara had also: shown the same Capital Gain in his Return of Income of A.Y. 2007/08 and the Returned Income in his case was accepted by the Assessing Officer in the order u/s. 143(3) of the Act. The- four confirming parties had acquired the right on 04.03.2005 and transferred the same on 28.03.2008 but the consideration was received in A.Y. 2008/09 and A.Y. 2009/10 and accordingly, had shown the long term capital gain in their Return of Income. Thus, the entire Capital Gain whether short term or long term has been taxed in this case of two co-owners and four confirming parties. The only doubt on the part of Assessing Officer is the execution of Registered Sale Deed in favour of Dhara Construction and Dhirajlal Popatlal Tejani by two co-owners when they had transferred their rights by Satakhat dtd. 04.0:5.2005. As per the terms of Satakhat the final sale deed was to be executed in favour of any person as per the instruction of four con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co-owners namely Harjibhai Parsottambhai Vastarpara and Becharbhai Jivrajbhai Vastarpara and by the four confirming parties by way of showing total sale consideration of Rs. 1,11,25,000/- bifurcated amongst their returns of income and after reducing the cost of acquisition which has been duly accepted by the revenue authorities, the remaining gain has been offered to tax. We further find that the co-owners who made agreement with the four confirming parties have shed their rights at the very moment they entered into the agreement and the value of sale consideration for these co-owners was fixed at Rs. 11,51,000/- and they were duty bound to sign the documents relating to sale deed irrespective of the fact that the sale deed which they were going to execute was in between the confirming parties and co-owners or with a third party. We find that four confirming parties further entered into an agreement for sale of land for Rs. 1,11,25,000/- of M/s Dhara Construction and Dhirajlal PopatlaiTejani and therefore, sale deed was registered by the signatures of two co-owners who received Rs. 11,51,000/- and the sale deed was further counter-signed by the confirming parties who received the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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