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2022 (11) TMI 616

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..... pital gains and thus, we are inclined to upheld the findings of the CIT(A) and reject the ground taken by the assessee. Disallowance of other expenses made - AO has disallowed a sum of other expenses on the ground that the assessee had incurred all the expenses in cash and could not file necessary evidences - HELD THAT:- Fact remains unchanged that the assessee could not controvert the findings of the facts recorded by the Ld. CIT(A) with evidence except stating that books of accounts of the assessee were audited and the assessee has explained the expenses with documentary evidence. But, fact remains that no evidence has been filed to justify expenditure incurred in cash and also payments in cash in excess of prescribed limit as provid .....

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..... ad in law and on facts. 4. That the appellant may be allowed to add, supplement, revise or amend grounds raised hereinabove in the interest of justice. 3. The brief facts of the case are that the assessee company had filed its return of income for the AY 2013-14 on 15.02.2014. The case has been subsequently taken up for scrutiny and during the course of assessment proceedings, it was noticed that the assessee company had declared short term capital loss of Rs. 12,42,17,815/- on the sale of land and building. The assessee company was asked to provide copies of sale and purchase deeds of property. In response the assessee submitted a copy of Memorandum of Understanding (MoU) dated 04.11.2009 between Mr. Man Singh Mehta, Mr. Harsha .....

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..... nd artificially inflated cost of property and thus, rejected the MoU between the parties and considered sale deed dated 17.11.2009 as per which the sale consideration of the property was fixed at Rs. 73,81,185/-. Therefore, by taking into account sale consideration as stated in the sale deed, computed short term capital gain of Rs. 53,12,025/- and made additions. 4. Being aggrieved by the assessment order, the assessee preferred an appeal before the Ld. CIT(A). Before the CIT(A), the assessee reiterated its arguments taken before the AO and submitted that the AO has erred in computing short term capital gain of Rs. 53,12,025/- as against a short term capital loss declared by the assessee at Rs. 12,42,17,815/-. The Ld. CIT(A) after consid .....

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..... rials available on record and gone through orders of the authorities below. Admittedly, MoU between the assessee and its director through the PoA holder is an unregistered document and further the consideration fixed for transfer of property has been paid by allotment of equity shares with a huge premium of Rs. 19,900/- per share. Since, it is a transfer between the related parties and also the purported document was unregistered, the authentication of the document and value fixed for transfer of property cannot be ascertainable. Therefore, we are of the considered view that the AO has rightly rejected MoU between the parties and purported consideration paid for purchase of the property. Further, as per the registered sale deed for purchase .....

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..... 0/-. The Ld. CIT(A) after considering submissions of the assessee, except general expenses, printing and stationery and vehicle expenses all other expenses are incurred through cheque and which are supported by necessary evidences. However, general expenses amounting to Rs. 63,035/-, printing and stationery amounting to Rs. 12,958/- and vehicle expenses amounting to Rs. 12,616/- is incurred in cash and thus, violated provisions of section 40A(3) of the Act. Therefore, out of total expenses incurred in cash at Rs. 88,609/-, the CIT(A) has disallowed 20% which was worked out at Rs. 17,721/- and balance amount of Rs. 62,619/- has been deleted. Fact remains unchanged that the assessee could not controvert the findings of the facts recorded by t .....

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