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TMI Blog2018 (1) TMI 1635X X X X Extracts X X X X X X X X Extracts X X X X ..... tribunal has properly appreciated the concerned section and the entire facts and circumstances. The tribunal had clearly noted that the assessee has sold the property - The assessee had not offered the same for taxation. When confronted in this regard, the assessee came up with an addendum to the agreement by which the sale was registered. This addendum was an unregistered document and totally self-serving document by way of which the assessee intended to defer the accrual of the income. All along assessee and the Counsel had been pleading that the said income had not accrued. Authorities below had to refer in the case of Sumati Dayal [ 1995 (3) TMI 3 - SUPREME COURT] to reject this contention of the assessee. Hence, it is clear that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) applicable to assessment year under appeal, but with reference to subsequently amended provisions. 3. We have heard both the counsels and perused the records. We find that this Tribunal in the aforesaid order has passed an elaborate and well reasoned order. The issue in that case was chargeability of income in the hands of the assessee which the assessee has claimed that the same had not accrued to the assessee. The tribunal had elaborately considered the issue and it has inter alia observed as under: 4.1 At the outset before us the learned Counsel of the assessee did not contest the assessee's submission before the authorities below that sum of ₹ 3,55,45,600 has not accrued to the assessee as income during the year. Though ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther submitting that the said income has not accrued to the assessee. For this purpose assessee has proceeded to prepare self-serving documents like addendum to the deed of agreement. She submitted that only after it was clearly established that as per the valid agreement the said income of ₹ 3,55,45,600 has accrued to the assessee, and Revenue was not going to accept the same, assessee has developed a story of having exercised option indirectly. She claimed that learned CIT(A) is quite correct in holding that in availing the benefit of clause 2 of Explanation to section 11(1), assessee is required to intimate the A.O. before the date of filing of the return u/s 139(1). She pointed out that learned CIT(A) has noted that no such docume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from trust property will be exempt from tax if 85% thereof is applied for the purpose of the trust. If the application of income falls short of 85% for the reason of non-receipt of income assessee may defer utilization of 85% of the income to another year. For this assessee was required to give notice in writing with the Assessing Officer in the prescribed manner explaining the purpose for which the income is been accumulated and set apart and the period for which the income is to be accumulated and set apart. It has further been provided that the money so accumulated and set apart is to be invested and deposited in specified manner. 4.8 We find that admittedly assessee has not exercised any such option. Assessee has been all along been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not offered the same for taxation. When confronted in this regard, the assessee came up with an addendum to the agreement by which the sale was registered. This addendum was an unregistered document and totally self-serving document by way of which the assessee intended to defer the accrual of the income. All along assessee and the Counsel had been pleading that the said income had not accrued. Authorities below had to refer to Hon'ble Apex Court decision in the case of Sumati Dayal vs. CIT [1995] 214 ITR 801 (SC) to reject this contention of the assessee. Hence, it is clear that the assessee was found to have entered into an activity which was colorable in nature. 6. In consequence to the above finding, it was observed that the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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