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TMI Blog2023 (12) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the Assessment Year 2017-18, disclosing her income at Rs. 6,10,413/- by paying tax of Rs. 10,350/- and the same was processed under Section 143 of the Act. During the previous Assessment Year, i.e. AY 2016-17, the Petitioner had executed a Power of Attorney dated 16.12.2015, in favour of one Mr.R.M.Jagannathan, for the purpose of selling a vacant land of 0.24 cents situated at No.25, Thiruporur Village, Kancheepuram District bearing Patta No.153 and comprised in Survey No.125 (hereinafter referred to as 'Thiruporur land'). The Petitioner, while executing the said Power of Attorney, handed over the physical possession to her Power of Attorney Mr.R.M.Jagannathan and in return received a total consideration of Rs. 50,00,000/- (Rupees Fifty Lakhs only) and the said payment was made on various dates between 28.09.2015 and 01.10.2015 by way of account payee cheques. While filing her return of income for AY 2019-17, the Petitioner paid tax on the long term capital gains of Rs. 50,00,000/- (Rupees Fifty Lakhs only) from sale of the Tiruporur land. (ii) Whileso, on 25.06.2016, Mr.R.M.Jagannathan registered a sale deed transferring the Tiruporur land to his son, one Mr.Hari P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the long term capital gains realised on the sale of Thiruporur land. The Petitioner duly co-operated with the authorities in respect of these proceedings, by furnishing all details/documents sought for. The Petitioner submitted that the entire consideration for the land had been paid to the Petitioner during Assessment Year 2016-2017, and while filing return of income for Assessment Year 2016-2017, the Petitioner had already paid tax on the long term capital gains arising on account of the same. Subsequently, Assessment Order came to be passed on 29.03.2022 (Consequential impugned order), by the 2nd Respondent holding that the sale consideration for the Thiruporur land was Rs. 1,04,64,000/- (Rupees One Crore Four Lakhs Sixty Four Thousand only) and accordingly added the same back to the income of the Petitioner for the Assessment Year 2017-18. Thereafter, on 30.03.2022, Assessment Order was passed for the Assessment Year 2016-17 holding that the sale consideration for the Thiruporur land is Rs. 1,04,64,000/- (Rupees One Crore Four Lakhs Sixty Four Thousand only) and accordingly added the same back to the income of the Petitioner for the said Assessment Year. 2. The learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a sum of Rs. 1,04,64,000/- (Rupees One Crore Four Lakhs Sixty Four Thousand only), they can very well do the same for the Assessment year 2016-17, since except the amount received at the time of execution of Power of Attorney, he has not received any amount. Therefore, he prays to allow this Writ Petition, by setting aside the impugned notice dated 31.03.2022 as well as consequent assessment order dated 29.03.2022. 5. In reply, the learned counsel appearing for the Respondents submitted that from the Document No.199/2016, dated 16.12.2015, it is seen that the document is not a Sale Deed but mere appointment of Sri R.M.Jaganathan as Power of Attorney, however the Sale Deed was executed on 26.05.2016. He further submitted that the total Capital Gains arising out of the sale consideration of Thiruporur land is a sum of Rs. 1,03,50,857/- (Rupees One Crore Three Lakhs Fifty Thousand Eight Hundred and Fifty Seven only) and therefore in order to protect the interest of revenue present proceedings have been initiated. He relied on paragraph 4 of the Impugned order dated 29.03.2022, wherein it is stated as follows: "4. On verification it is noticed that "the document No.199/2016 dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings are also pending before the Appellate authority and prays for dismissal of the Writ Petition. 6. I have considered the submission made by the learned counsel for the Petitioner as well as the Respondents and perused the documents available on record. 7. The present case pertains to assessment of Capital Gains arising out of the sale in respect of Thiruporur land. A Power of Attorney was executed by the Petitioner in favour of Sri.R.M.Jaganathan on 16.12.2015. According to the learned counsel for the Petitioner, the Petitioner received sale consideration of Rs. 50,00,000/-(Rupees Fifty Lakhs only). However, the Department states that by virtue of Sale Deed executed on 26.05.2016, by the Power of Attorney holder, the property was sold for a sum of Rs. 1,04,64,000/- (Rupees One Crore Four Lakhs Sixty Four Thousand only). The Petitioner states that she has not received any amount subsequent to the execution of Power of Attorney. If at all the Department wants to proceed with the assessment construing that the property was sold for a sum of Rs. 1,04,64,000/- (Rupees One Crore Four Lakhs Sixty Four Thousand only), it should be for the Assessment Year 2016-2017 and not for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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