9911796707
TMI Blog2019 (2) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the father of the assessee Shri B. Sambanda Mudaliar purchased an old building used as Kalyana Mandapam consisting of 4 grounds in the name of the assessee and his brother Shri B.S. Murugesan on 05.12.1979. On the date of purchase of the property, according to the Ld. representative, the assessee and his brother Shri B.S. Murugesan were minors. The minors had no independent source of income. Out of the income of the family, Shri Sambanda Mudaliar purchased the property in the name of two minor children. Therefore, according to the Ld. representative, the property now in question is a family property. In other words, the property belongs to Hindu Undivided Family of Shri Sambanda Mudaliar even though the document was registered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t suffered continuous loss. In the year 2001, according to the Ld. representative, State Bank of India initiated proceeding for recovery of outstanding amount. In fact, State Bank of India recalled the entire loan with interest in the year 2003. State Bank of India also approached Debt Recovery Tribunal to recover the outstanding amount and also invoked the provisions of SARFAESI Act to recover the bank's due by taking over the possession of all securities. In fact, according to the Ld. representative, on 28.11.2005, the State Bank of India took the possession of the property which is now in question. The total outstanding was _12.17 Crores. The assessee negotiated with State Bank of India and there was mutual settlement between State Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one ground on 11.1.2010 for a consideration of _3 Crores and the buyer paid the entire amount to the bank liability. According to the Ld. representative, the assessee could not get even a single pie. The Assessing Officer found that the property was sold for _3 Crores by the assessee, therefore, he has to pay long term capital gains for transfer of asset. According to the Ld. representative, the property was admittedly purchased on 05.12.1979, a copy of document is available at page 8 of the paper-book. The English version of document is available at page 6 of the paper-book. According to the Ld. representative, this document clearly establishes that the assessee was a minor on the date of purchase, i.e. on 05.12.1979. The assessee's fath ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the CIT(Appeals) has rightly confirmed the capital gain tax levied by the Assessing Officer. On a query from the Bench when the property was purchased by the assessee's father in the year 1979 when the assessee admittedly was minor and the assessee had no independent source of income, whether the property belongs to the assessee or HUF of Shri Sambanda Mudaliar?, the Ld. D.R. submitted that he is placing reliance on the observation made by the Assessing Officer and the CIT(Appeals). 7. We have considered the rival submissions on either side and perused the relevant material available on record. Admittedly, the property in question was purchased by Shri Sambanda Mudaliar, the assessee's father on 05.12.1979 in the name of the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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