Levy of Capital Gain Tax when assessee denies ownership and sale

By CA Sandeep Kanoi Income Tax Judiciary April 6, 2017 8 comments

TaxGuru Citation: 2017 taxguru.in 580
Case Name: Smt. Uppada Sarvani Vs ITO (Hyderabad High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Andhra Pradesh HC

Upgrade to Basic or Premium to download.

Already Upgraded? Log in.

Some times truth is stranger than fiction and the case on hand falls under that category. The petitioner in both these writ petitions has come up with a challenge to an order passed under Section 143(3) read with Section 147 of the Income Tax Act, 1961 in the first writ petition and against the penalty proceedings under Section 271 (1) (c) in the second writ petition.

2. Heard Mr. P. Vasudeva Reddy and Mr. Shai

k Jeelani Basha learned counsel for the petitioner in the respective writ petitions and Mr. K. Raji Reddy, learned Senior Standing Counsel for the Department.

3. Sans unnecessary details, the case of the petitioner is that she was not the owner of the property bearing Plot No.1 in Old S.No.2/1B situated at Madhavadhara Village within the limits of the Greater Visakhapatnam Municipal Corporation, measuring an extent of about 551 Sq. yards, which became the subject matter of sale under a registered sale deed dated 26.12.2007. But since the sale deed was executed in the name of the petitioner herein, the assessing officer initiated proceedings on the ground that she had sold an immovable property whose market value was Rs.59,51,000/-, for a stated sale consideration of Rs.30,00,000/- and that therefore the petitioner was liable to pay Capital Gains tax.