Non-receipt of sale consideration vis-à-vis no handing over of property- Matter Remanded

ACIT Vs Late Sh. Amarjeet singh (ITAT Delhi)

Facts- The assessee is an individual and deriving income from property, share income as partner in M/s S.M. & Sons and M/s Santokh Singh & Sons and interest income. The assessee filed its return of income on 30.09.2011 declaring an income of Rs.19,27,700/-. Subsequently, the assessee revised its return of income on 23.02.2013 declaring income at Rs.38,09,925/- on account of withdrawal of interest of Rs.17,69,625/- paid on bank loan and claimed under the head “property income” which was for business purposes.

During the year, the assessee sold immovable property for Rs. 9.75 Crores but not capital gain was disclosed in the ROI. Assessee explained that they didn’t received any sale consideration from the company as the company didn’t make any payment.

Conclusion- 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. 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 the payments received by the assessee.

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, the matter is being remanded back to the file of the ld. CIT(A) to get the investigations conducted under his/her supervision and obtained the much-needed factual reports from the Assessing Authorities/Investigation Wing as deemed fit and pass a speaking order in provisions of the Income Tax Act.

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