9911796707
TMI Blog2023 (1) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, therefore, being the actual beneficiary, addition was made in his hand. We are unable to affirm the view of the Assessing Officer as the law is clear regarding taxability of capital gain arising out of transfer of immovable property. Whether capital gain can be charged from the person who sold property as attorney of the owner ? - In our considered view, there is no ambiguity under the law for chargeability of capital gain in respect of transfer of any capital asset. It is the owner of capital asset who would be liable for capital gain. In case the sale consideration is credited into the account of third party or the attorney of such owner, in that event also the money which has been credited in the account of the third party ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e never owned by the assessee and the Ld. CIT(Appeals) has further erred in confirming the same. 3. That the appellant craves to add, amend or delete any ground(s) of appeal before or during the hearing of the Appeal. 2. The facts giving rise to the present appeal are that in this case the assessment was reopened u/s 147 of the Income-tax Act, 1961 (in short the Act ) on the basis of chargeability of capital gains arising out of sale of property. Thereafter the Assessing Officer framed the assessment u/s 143(3) read with Section 147 of the Act, thereby computing capital gain at Rs. 32,67,930/-. Thus, assessing the income at Rs. 35,52,980/-. Aggrieved against this, the assessee preferred appeal before the learned CIT(Appeals), w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s placed on record. In view of these facts, the entire sale consideration amounting to Rs 55.76,000 /- for 11 regd, deeds of area, measuring 1806 Sq yards is to be considered in hands of the assesses. As the land is situated within municipal limits, long term capital gain arises on transfer of capital asset u/s 45 of I.T, Act, 1961. The assessee has shown purchase rate of property @ Rs 247/- Sq yard but has failed to produce any documentary, proof in this regard. As the property is claimed to be purchased before 01.04.1981, the cost of acquisition is to be adopted of 01.04.1981 which is hereby adopted @ 150 Sq yard for want of documentary proof and in the interest of natural justice and the capital gain is computed as under.:- Sale co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of conjectures. The Assessing officer has recorded that assessee vide letter dated 8.11.2016 intimated that he had not sold any property. He was having power of attorney of his mother in respect of land admeasuring 1288 sq. yards in Shaheed Malkhan Singh Colony, Gharaunda. However, the Assessing Officer made addition on the basis that the entire sale proceeds amounting to Rs. 55,76,000/- had been credited in the account of the assessee, therefore, being the actual beneficiary, addition was made in his hand. I am unable to affirm the view of the Assessing Officer as the law is clear regarding taxability of capital gain arising out of transfer of immovable property. As per section 45 of the Act, any profits or gains arising from the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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