9911796707
TMI Blog2021 (5) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax-13(3)(1), Mumbai (hereinafter referred to as ld. AO). 2. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in confirming the addition made on account of sale consideration of property amounting to Rs. 44,63,434/- in the facts and circumstances of the case. 3. We have heard rival submissions and perused the materials available on record. We find that assessee is an individual and had filed his return of income for the A.Y.2015-16 on 30/09/2015 declaring total income of Rs. 12,84,79,720/-. The assessee is also a Director of Regal Hotel Pvt. Ltd., Further the assessee filed its revised return of income on 30/03/2017 declaring revised total income of Rs. 11,67,24,470/-. During the year under c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the purchase cost. On purchase of the plot, one becomes a member of the Nutan Laxmi Co-operative Housing Society Ltd and a member has number of rights attached to the plot such as being part of association, rights in getting priority in membership of various associations including right of membership of Juhu Gymkhana, concessional rights in hiring of plots for various occasions etc. b) All the parties viz., Shri Pratap Hirji Ved, Mrs. Krishna Pratap Ved, Shri Rajesh Pratap Ved (the assessee) and Mrs. Krupa R. Ved had entered into partnership to carry on business of development in name of M/s. Radha Enterprise as per partnership deed dated 3.12.2002. Vide agreement dated 18.9.2004, the said Plot was assigned along with certain rights ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of premises, lease deed, transfer of shares and papers for transfer of membership rights in Juhu gymkhana, which are valuable rights, a portion of amount was required to be paid to both the lady members since it is jointly held. g) The purchaser of the flats also insisting that since both the parties are party to agreement, due consideration is required to be paid to enter a legal and enforceable document. h) The membership rights of the Nutan Laxmi Co-operative Society are a valuable right and it enjoys all the facilities like membership of Juhu Vile Parle Gymkhana Cub etc and leasehold rights in plot. As per the bye laws of the society, only members of one family can become member of the society and all the rights in the society inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned and paid. l) The ld AR before us stated that the said income is declared by Smt Krishna Ved and Smt Krupa Ved in their respective returns of income for the A.Y.2015-16 which were accepted by the department as such. 6. We find that the ld AO observed that the sale consideration was distributed among 4 persons , whereas the cost of purchase was borne by two persons only i.e Pratap Ved and Rajesh Ved and that no payments were made by Smt Krishna Ved and Smt Krupa Ved. Accordingly, the ld AO held that the sale consideration is to be divided only between two persons as under:- DETAILS PRATAP RAJESH TOTAL Sales consideration as per ITR 131,129,020 157,837,480 288,966,500 Sales Consideration shown in Krishna & Krupa 4,170,066 4, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Shri Pratap H Ved, Shri Rajesh Ved (assessee herein before us), Smt Krishna Ved and Smt Krupa Ved, had joined the partnership firm M/s Radhe Enterprise. We find from the facts narrated hereinabove that assessee and Shri Pratap H Ved had paid for the cost of acquisition of the plot originally and hence when plot was brought in as capital contribution to the partnership firm, their respective capital accounts were duly credited for such amount. We find that the rights over the leasehold property belonged toa ll the four members of Ved family which is evident from Share Certificate No. 30 of Nutan Co-operative Housing Society Limited. We find that when originally the property was assigned from four individuals to partnership firm, the par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6, which are forming part of the paper books filed before us, they had duly disclosed the capital gains attributable to their share without claiming any deduction towards cost of acquisition. We find from the computation of income for the Asst Year 2015-16 of both the ladies, that they were conscious of their income tax obligations and had duly disclosed the share of their sale consideration as long term capital gains (without any cost) and had duly claimed deduction u/s 54EC of the Act by making reinvestment in eligible bonds. We find that the ld AR submitted that the returns filed by two ladies have been accepted by the department. Hence there is no need to bring to tax the very same sale consideration in the hands of assessee herein, inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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