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TMI Blog2021 (5) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... s of membership etc which were not given to the firm. Therefore, there is no transfer from husband to wife of any right or any value. In view of that no value can be assigned under Section 64(1) of the Act by applying clubbing provisions thereon. Moreover, we find that the ld CITA grossly erred in applying the clubbing provisions u/s 64(1) of the Act even for mother. Admittedly, as per law, the same could be applied only for spouse and for son s wife. Hence the addition sustained by the ld CIT(A) deserves to be deleted on this count itself. We find from the income tax returns of Smt. Krishna Ved and Smt Krupa Ved for the Asst Year 2015-16, 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to Mr. Rajesh P Ved- the assessee and c) The rights in the society The Nutan Laxmi Co-operaive Housing Society along with share certificate, membership of the society and all other benefit available to the member of the society and belonged to Mr. Rajesh Pratap Ved, Shri Pratap H Ved, Smt. Krishna P. Ved and Smt. Krupa R. Ved jointly. 5. We find that the narration of the following undisputed facts would be relevant for understanding the issue in dispute before us:- a) The plot of land and structure at Juhu Vile Parle Scheme Mumbai was originally purchased on 18th June, 2004 in the names of Shri Pratap Hirji Ved, Mrs. Krishna Pratap Ved, Shri Rajesh Pratap Ved (the assessee) and Mrs. Krupa R Ved from Mrs. Rupa Prakash Pandya and others. Along with plot and structure, all the rights in 5 shares of The Nutan Laxmi Co-operative Housing Society Ltd and all lease hold rights along with tenants were part 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 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 including leasehold plot remain in the hands of the said family. The other occupants of the flats viz. flat no.1 to 6 are not entitled to become a member of the society. These rights belonged to all the four members of Ved family. The facts have been clearly stated in Recital (j) on Page No. 8 of the agreement for sale and assignment dated 20.1.2015. Accordingly, Mrs. Krupa P. Ved and Mrs. Krishna P. Ved were paid 1.45% of total consideration i.e. ₹ 43,16,750 each as stated in clause 5 page No.11 of the agreement. i) Accordingly total consideration has been divided among the sellers as per the understanding among the sellers and also the purchasers of the above rights along with flats as per agreement dated 20.1.2015. j) Therefore, Mrs. Krishna P. Ved and Mrs. Krupa R Ved have been entitled and hence accordingly were paid ₹ 43,16,750/- and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration shown in Krishna Krupa 4,170,066 4,463,434 8,633,500 Revised Sales Consideration 135,299,86 162,300,914 297,600,000 Cost of purchase 9,623,010 10,300,000 19,923,010 Ratio 48.30 51.70 100 Indexed cost of purchase 20,529,088 21,973,333 42,502,421 Balance amount 114,769,998 140,327,581 255,097,579 Less: Expenses incurred Brokerage Prof fees as per COI 3,631,899 4,570,221 8,202,120 Krishna Krupa Share 99,568 16,572 206,140 6.2. From the aforesaid table, it could be seen that a sale consideration pertaining to Smt Krishna Ved and Smt Krupa Ved has been included in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence the addition sustained by the ld CIT(A) deserves to be deleted on this count itself. 9. In any case, we find from the income tax returns of Smt. Krishna Ved and Smt Krupa Ved for the Asst Year 2015-16, 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, inclusion of which , would only result in double taxation. Hence we hold that the entire addition made in the sum of ₹ 44,63,434/- in the hands of the assessee is hereby directed to be deleted and grounds 1 2 raised by the assessee are all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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