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TMI Blog2018 (1) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. As per the ownership title on the land. Since, assessee is not a real owner of the said property and place between coowners and M/s NDL Estates Pvt. Ltd, we can come to a conclusion that there is no transfer made by the assessee. We developments. Further, section 50C cannot be applied in the given case. Accordingly, we are in agreement with the findings of the Ld. CIT(A) and uphold the order of Ld. CIT(A). Hence, we dismiss the grounds raised by the revenue. - ITA No. 760/Hyd/2016 And C.O. No. 50/Hyd/2016 - - - Dated:- 30-11-2017 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER For The Revenue : Dr. Sibendu Moharana For The Assessee : Shri A.V. Raghuram ORDER PER S. RIFAUR RAHMAN, A.M.: the learned Commissioner of Income-tax(A) - 3, Hyderabad, dated 02-03-2016 for AY 2007-08. The assessee also filed C.O. against the said order of CIT(A). 2. Briefly the facts of the case are that assessee, an individual and Director in M/s SEC Industries (P) Ltd, filed his return of income for AY 2007-08 on 01/10/2007 declaring income of ₹ 63,90,113/- income of ₹ 81,500/-. AO received information from ITO (Int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the date of agreement. ( ii) that out of 7 acres of patta land, only Ac 2.33 cents would be registered in the name of vendee after converting inam land to patta land. ( iii) that the above agreement stands cancelled if the land is not converted into patta ( iv) out of agreed consideration of ₹ 4,700, only an amount of ₹ 2,000 was paid and the balance ₹ 2,700 was to be paid within a month D: DATE: 29-09-1980 Shri K.Sambasiva Rao (owner of adjacent land) and the 4 owners gave Power of Attorney to Sri D.Seshagiri Rao (DSR) to sell 33 acres of land, to obtain permission under Urban Land Ceiling Act, to get approval for lay-out, to construct, to sign any sale deed. No amount was mentioned in this document. Sri K.Sambasiva Rao is the owner and also GPA holder for the land to the extent of 25 acres, which is adjacent to the subject property of Ac. 8s. This is also an unregistered document. No consideration is mentioned. E : DATE: 06-03-1990 The 4 owners entered an agreement of sale with Sri DSR, the salient features of this agreement are: ( i) this agreement refers to earlier agreements dated 27-11- 1967, 24-04-19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation or otherwise and the vendors to hereby declare, agree, admit, acknowledged and covenant that they shall, at all times, in future as required by the purchaser; register a sale deed or deeds either in his favour or in favour of his nominee or nominees as the case may be, conveying their right, title and interest thereon either to the purchaser or his nominee or nominees, as the case may be; 6. The vendors do hereby further declare, agree and covenant that they are executing a fresh General Power of Attorney today in favour of the purchaser empowering him also to execute sale deed 'or deeds as the case may be in favour of any person, authority, institution, as the case may be, for conveying the rights, title and interest of the vendors and deliver possession of the said extent of Ac.3.33 cents in Survey Number 194/1 to such purchasers and the vendors do hereby declare, agree and covenant that they shall not claim any further sum or consideration from the purchaser in respect of the said extent of Ac. 3.33 cents of land; 7. That in respect of the remaining extent of Ac. 4.67 cents of land, the vendors do hereby declare, agree and covenant that they shall sell the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of land of Ac 3.33 cents, the sale consideration was already received by the vendors. ( c) the balance land of Ac. 4.67 cents shall be sold for a consideration of ₹ 24 lakhs to be paid as under: ( i) sum of ₹ 2 lakhs to be paid by 30-04-1990 ( ii) the balance amounts will be paid within one year from the date of de-notification of the land from the proposed acquisition for Buddha Purnima Project of Govt. of A. P. ( d) the vendors also would execute a General Power of Attorney (GPA) in respect of 8 acres of land to do all necessary things for securing permission / clearance / exemption etc. ( e) that the purchaser has protection u/s 53A of Transfer of Property Act ( f) This agreement of sale dated 06-03-1990 is un-registered. However, this document was notarized. All the 4 owners have acknowledged the receipt of ₹ 50,000 each total amount to ₹ 2 lakhs, by way of stamped receipt. F : DATE: 07-03-1990 General Power of Attorney was entered between the 4 owners and Sri DSR. The salient features are: ( i) this Power of Attorney (POA) is irrevocable. ( ii) the owners will have no righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was registered as sale-cum-GPA. The sale consideration was ₹ 11 lakhs. This document of 05-09-2006 was not registered by Sub- Registrar and on appeal, on directions of appellate authority, the same was registered on 16-12-2008. In this agreement at Page-5, clause-5, it is written that it shall not be possible for Vendor No.5 (DSR) to secure the presence of vendors 1 to 4 (owners) due to long lapse of time . Subsequent Developments: I : 2009 Four registered sale deeds were entered into between the original owners through their GPA Holder (Appellant) and M/s NDL Estates (P) Ltd. ( i) Sale Deed No.527/2009 dt 25-02-2009 for 6000 sq.yds of the subject property. ( ii) Sale deed No.528/2009 dt 25-02-2009 for 540 sq.yds of the subject property ( iii) Sale deed dated 8-4-2009 for 9006 sq.yds of the subject property ( iv) Sale deed dated 27-4-2009 for 3260 sq.yds of the subject property The above 4 documents refer to earlier documents dated 05-11- 1967, 07-03-1990, 20-11-1995 and 05-09-2006. It is to be specifically mentioned that in all the 4 documents, it is written that vendor No.5 (Sri DSR) is executing this sale deed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 046716 29-12-2010 N.ANNAPURANA DEVI 9,00,000 8 046717 29-12-2010 N.CHITTARANJAN 8,50,000 9 046718 29-12-2010 N.SUDHAKAR CHOUDARY 8,00,000 10 046727 29-12-2010 J.LAKSHMAIAH 6,37,500 11 046725 29-12-2010 J.SARADA DEVI 6,37,500 12 046730 29-12-2010 J.SITA RAMA SWAMY 6,37,500 13 046726 29-12-2010 J.RUPCHAND 6,37,500 L. 17/06/2013 Further Development Sri J.Lakshmaiah in his letter dated 17-6-13 and Shri K.Bhavani Shankar Rao, in his letter dated 26-2-14 had stated that after cancellation of GPA dated 7-3-1990 by them, on 11-9-200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submissions of the assessee and various documents placed on record, the CIT(A) allowed the appeal of the assessee by observing as under: 5. I have carefully gone through the series of documents, submissions of the appellant, submissions made by 4 owners before income-tax authorities. As mentioned above, there have been series of unregistered / registered documents over a period of 60 years time. The deeds were subject to fulfilment of certain conditions / payments of certain amounts which were neither fulfilled nor paid fully. Ultimately, the original owners denied that they have signed on any document except the Memorandum of Understanding dated 29-12-2010. Ultimately, the 4 owners entered an Memorandum of Understanding with M/s NDL Infratech (P) Limited on 29-12- 2010 and received the payment as mentioned at Para.2.K. It is also pertinent to mention that the property was subject to encroachment over a period of time the land of 8 acres has come down to Ac. 4.16 cents. Even as on today, there are multiple litigations on the said property. Therefore, the value of the land cannot be equated with free hold land and Section 50C. Further, the 4 owners vide cancellation deed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the owners of land from the year 1967 till date. After above agreements are, that four coowners, namely, Shri K. Madhusudhan Rao, Sri K. Bhavani Shankar Rao, Shri J. Lakshmaiah and Smt. Annapurna Devi (hereinafter they are referred to as Mr. KMR and others ) who are hailing from Kuchipudi Village, Amrathalur (M), Guntur Dt., purchased 8 acres of non-agricultural land in Survey No. 194/1, Begumpet Revenue (V), Balanagar (M), R.R. District from Sri Mirza Ali Moosa Raza vide registered sale deed No. 2568/1967, dt. 05/01/1967 for an amount of ₹ 28,000/-. Mr. KMR and others entered into an agreement of sale-cum-GPA with the assessee in two separate agreements of sale of 3.3 acres and 4.67 acres. As per the consideration. As per the second agreement dated 29/09/1980, for the balance land of 4.67 acres, they handed over the possession of the land by virtue of GPA dated 29/09/1980 and as per the agreement of consideration of ₹ 24 lakhs and received a sum of ₹ 2 lakhs, which should be paid on or before 30/04/1990 and the balance by the State Govt. and after change of purpose in the exemption order vide GO Ms. No. 4586, dated 10/10/1980 in favour of the KMR and others. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le certainty and transferee manner prescribed therefor by the law . In the given case, assessee right to the assessee to claim the ownership of the property. It is ownership on the property. Ownership can be said to be acquired when ownership along with possession passed on. In the given case, assessee held the property without any title of the property. All along there are sale agreements entered into by the assessee with M/s NDL Estates Pvt. Ltd as a representative of the co-owners. As per the ownership title on the land. 7.3 Since, assessee is not a real owner of the said property and place between coowners and M/s NDL Estates Pvt. Ltd, we can come to a conclusion that there is no transfer made by the assessee. We developments. Further, section 50C cannot be applied in the given case. Accordingly, we are in agreement with the findings of the Ld. CIT(A) and uphold the order of Ld. CIT(A). Hence, we dismiss the grounds raised by the revenue. 8. As we have dismissed the appeal of the revenue upholding the order of the Ld. CIT(A), the CO filed by the assessee becomes infructuous and, therefore, the CO is dismissed as infructuous. 9. In the result, appeal of the revenue as w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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