Case Law Details
Chain Singh Mundra Vs ITO (ITAT Chandigarh)
In the instant case, the limited dispute relates to whether the assessee has transferred a residential house or not. On perusal of the Sale Deed executed by the assessee, it is noticed that what has been transferred is an industrial plot No.C-10 alongwith construction thereon situated at Sector 57-A, Focal Point, SAS Nagar, Mohali having an area of 4166.70 sq.yard. In the said Sale Deed, there is a clear mention that the assessee is the absolute owner and in possession of the said industrial plot and the assessee in his full sense of mind has sold the said industrial plot alongwith construction erected thereon. Therefore, as borne out from the contents of the Sale Deed duly executed by the assessee and registered with the office of Sub Registrar, SAS Nagar, Mohali, it is clear that what has been transferred is an industrial plot (alongwith the construction thereon) and not a residential plot. Further, there is a Valuation Report which has been placed on record by the assessee during the course of assessment proceedings. The said Valuation Report has been prepared by M/s Syal& Associates, Chartered Engineers as on 12.01.2015 about a month prior to the execution of the Conveyance Deed on 10.02.2015 which shows the locality of the property, usage and specification of the constructed area just prior to the execution of the Conveyance Deed. On perusal of the Valuation Report, it is noted that the subject property was located in an industrial area having an area of 4166.70 sq.yd and a covered area of 52,105 sq.ft. The construction has been carried out in form of parking area, office space, residential and recreational area covering basement, ground floor and first floor. The parking area has been built in the basement floor covering 15000 sq.ft. having RCC framed structure, RCC retaining walls with Tremix flooring. The office area is built on the ground floor covering 18805 sq.ft. consisting of RCC framed structure, Aluminium windows, vitrified tile flooring. The residential area is on first floor with a covered area of 15304 sq.ft. having specification of masonry structure, granite flooring, ceramic tiles in the bathrooms, wooden doors and windows. If we look at the residential area, though it talks about masonry structure, granite flooring and ceramic tiles which is more a broad specification of a built up area which could possibly be used for residential purposes, however, at the same time, it does not have all the necessary attributes of a residential house in terms of bedrooms and kitchen facility. In any case, what the law contemplates is a transfer and sale of property which is being used for residential purposes. Therefore, what is essential is that the property should necessarily and solely be a residential house and used for residential purposes only. In the instant case where on an industrial plot of land, there is an office built up area on ground floor and so-called residential built-up area on the first floor, can it be said that what has been transferred is a residential house. To our mind, the answer to the same cannot be in affirmative and what has been transferred is an industrial plot of land having mixed constructed area consisting of office-cum-residential area.
We, therefore, agree with the findings of the Ld.CIT(A) that the transacted property is an industrial plot and not a residential plot which is clearly borne out from the contents of the Sale Deed to which the assessee is himself a signatory and duly acknowledges the contents thereof. In the light of the same, subsequent oral evidence in form of an affidavit cannot be accepted and we affirm the findings of the Ld.CIT(A) that merely having Aadhar Card and Bank Account showing the same address do not accord the status of a residential house to the property under consideration and claim of the assessee cannot be accepted.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
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