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TMI Blog2019 (5) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... reopening of the assessment, assessee did not choose to declare the income actually received by the assessee on the amount of ₹ 15,00,000/- received as sale consideration. Hence, the penalty in respect of concealment of income on the capital gains earned by the assessee on the amount of ₹ 15,00,000/- received as sale consideration is liable to be confirmed. However, the penalty in respect of the remaining amount levied by the Assessing Officer by way of computing the capital gain on accrual basis is liable to be deleted - Appeal of the assessee is partly allowed. - ITA No.1073/Chd/2014 - - - Dated:- 9-5-2019 - Shri Sanjay Garg, Judicial Member And Dr. B.R.R. Kumar, Accountant Member For the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income for the A.Y. 2007-08 declaring income of ₹ 1,14,200/- only. The Assessing Officer noticed that as per the agreement dated 27.02.2007, each of the members of the society including the appellant, owning plot of 500 sq. yards were to receive ₹ 82,50,000/- in cash and a furnished flat measuring 2250 sq. ft., with market value of ₹ 1,01,25,000/-, calculated at the rate of ₹ 4500/- per sq. ft. Thus, the total consideration for transfer of plot came to ₹ 1,83,75,000/-. The Assessing Officer computed the income by way of capital gains by adopting this amount as sale consideration. Finally, the assessment was made by taking capital gains income at ₹ 1,77,47,197/-. Penalty proceedings u/s 271(l)(c) were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court before the Hon ble Supreme Court. However, the Hon ble Supreme Court dismissed the appeal of the Department vide order dated 04.10.2017 along with other appeals with lead case titled as CIT vs. Balbir Singh Mani and Ors. reported in (2017) 157 DTR 273 (SC) observing that since the JDA could not mature hence, in the facts and circumstances of the cases, in respect of the transaction which did not materialized, at the best it can be said to be hypothetical income and in fact it was not a real income and hence no profit gain on accrual basis could be brought to tax. 6. Since the quantum addition made by the Assessing Officer on accrual basis stood deleted by the decision dated 22.07.2015 of the Hon ble P H High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the consideration on transfer of part of the land of pro data basis, or at the completion of the entire transaction of transfer as per JDA. That under these circumstances, it cannot be said that the assessee has furnished inaccurate particulars of income or has concealed the income. We are not convinced with the above submission of the ld. Counsel for the assessee in this case. When the reopening was done on the basis of information on particular issue of transfer of land through JDA, it was incumbent upon the assessee to come with clean hands and disclose the entire transaction in the return of income and voluntarily offer the capital gain tax on the amount of ₹ 15,00,000/- actually received by the assessee as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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