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TMI Blog2022 (5) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... occupy the property as per the documents. At the same time, the revenue has also not confirmed with regard to the payments received by the assessee, as to which account the amounts have been credited or as to the receipt of money by both the parties namely, the assessee and Sh. Manjit Singh. The assessee is 33% owner of the property whereas Sh. Manjit Singh is 67% owner. The returns of Sh. Manjit Singh, the amounts received by Sh. Manjit Singh, the taxation thereof the receipts of 67% owner have not been brought on record to examine the issue in a holistic manner. While the assessee disputed the receipt of the payment, no enquiries have been conducted from BIC Logistics Ltd. to confirm whether they have fulfilled or defaulted the payments as mentioned in the agreement. Under these circumstances, it needs to be investigated and confirmed by the revenue that the assessee has indeed received monies from BIC Logistics Ltd. Investigations are also required to find out the fact whether the assessee is still in the possession of the property or parted with the property. Hence, in the interest of justice and in order to avoid duplication of work and for accelerated disposal, the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny as the company did not make any payment. No detail of any payments has been mentioned in the sale deed and there was no details of payment given to Sh. Amarjeet Singh. Before the AO, it was explained that the assessee did not give possession of above property to M/s. BIC Logistics Ltd. as no payment has been received. The assessee is already declaring the above property in his return of income for A.Y. 2011-12, A.Y. 2012-13 and A.Y. 2013-14. The investment in above property is also reflected in the balance sheet of the assessee. Hence, the provision of Section 45(1) and Section 2(47)(v) of the Income Tax Act, 1961 are also not applicable as there was no consideration received nor the assessee has parted with the property. 5. The AO after considering the reply of the assessee held that the assessee has not denied having executing the sale deed in favour of BIC Logistic Ltd. and the assessee has even filed copy of sale deed dated 26.10.2010 for Rs. 9.75 crores. The AO held that the assessee has only contended that no payment has been received in lieu of transfer of this property and therefore no possession was given, however, from the perusal of the sale deed, it is noticed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not been reflected. Since, there is no record of receipt of the payment and the space has been left to blank, the Ld. CIT(A) held that facts lead to a conclusion that no payment has been received by the assessee. 7. Aggrieved the revenue filed appeal before us. 8. The Ld. DR argued that having signed the sale deed before the sub-Registrar, the assessee cannot argue that the registration of the sale deed has not been completed. Having registered the sale deed, it is legally submitted that the transfer of property has indeed taken place. Referring to the contents of the sale deed, the Ld. DR explained that it was clearly mentioned that the property has also been handed over symbolically. The Ld. DR has taken us through the deed dated 10.10.2008 wherein the property measuring 357.85 sq. mts. along with constructed area of 500 sq. mts. on three floors has been purchased by Sh. Amarjit Singh Bhatia and Others (Sh. Manjit Singh from Kanha Estate Pvt. Ltd. through its Director, Sh. Gulshan Kumar for Rs. 9,75,000/-). The said property had 14 tenants as per the deed dated 10.10.2008. Vide indemnity bonds dated 30.01.2009, Sh. Bhupender Singh Sethi, the tenant surrender the tenancy rig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h. 2. The said property was purchased for Rs. 97.50 lacs on 10.10.2008 from Kanha Estates Pvt. Ltd. 3. Subsequently, the property was sold to BIC Logistics Ltd. for a consideration of Rs. 970.00 lacs on 26.10.2010. 4. The sale deed was registered in the Sub-Registrar office vide Registration No. 10476 in book No. 1 Volume No. 13896 page No. 150 to 160 on 26.10.2010. 5. The photographs of Sh. Manjit Singh and the assessee have been duly reflected on the registered deed at back side of page No. 9. 6. The details of sale of the property has been forwarded to the Income Tax Department under AIR. 7. The Assessing Officer has obtained a copy of the sale deed from the sub-Registrar u/s. 133(6). 8. Based on the sale deed, the Income Tax Department computed short term capital gains. 9. The assessee disputes the sale of property and contends that he has not signed and the details of payments have not been reflected in the sale deed. 10. The assessee contends that he has not received the any payment and the property is still in the name of the assessee and not transferred. 11. The assessee contends that the property is continued to be reflecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contract: Provided that nothing in this section shall affect the rights of a transferee for consideration who has no notice of the contract or of the part performance thereof.] 15. This is a classic case wherein the property has not been handed over inspite of the registration done owing to non-receipt of the amounts. This issue is a grey matter which needs to be proved undisputedly owing to the conflicting nature of the documents as filed with the Income Tax Department, Registration Department and the arguments taken before us by both the parties. The assessee claims that he continuous to be in the possession of the property. No material has been brought on record by the revenue to prove the receipt of the money against argument that the assessee has not received the amounts. The purchaser has paid stamp duty of Rs. 58.50 lacs which cannot be expected to be spent profligately by the purchaser. The purchaser has not taken any steps to occupy the property as per the documents. At the same time, the revenue has also not confirmed with regard to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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