Case Law Details
Case Name : Commissioner Of Income Tax Vs Intezar Ali (Allahabad High Court)
Related Assessment Year :
Courts :
All High Courts Allahabad High Court
Become a Premium member to Download.
If you are already a Premium member, Login here to access.
Sponsored
Assessee as an honest citizen not only made a complaint to the registering authority that the sale deed has been registered at a value much below the amount, which he has actually received, he deposited the entire amount in the bank and voluntarily filed return. There was no material whatsoever or any circumstance, which could have suggested that this amount was received by him from any other source. The deposition of witness of the sale deed, the Bank Manager and the evidence filed with regard to valuation of the property was more than sufficient to discharge t
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Sponsored
Kindly Refer to
Privacy Policy &
Complete Terms of Use and Disclaimer.
The views of ca.Dev Kumar Kothari are fair
The revenue minded overzeal is not uncommon, which even blinds the common sense and fair play. No need to guess that the AO would have made all enquiries about other assets, sources of income and bank accounts in a scrutiny assessment.
In view of corroborative evidences,the honorable Tribunal and honorable High Court have described the assessee/ seller of land as an honest person. However, with due respect, author feels that the fact that assessee signed sale deed which showed just about 1/6th of actual consideration(as alleged by the seller (assessee)) and the amount was claimed to be exempt because the land is rural agricultural land, hence not a ‘capital asset’ for levy of capital gains tax. are relevant factors for consideration by tax authorities. Having declared sale consideration of Rs.20 lakh in sale deed, it can be said that sale consideration was Rs.20 lakh and balance amount was his own money to which he has given colour of sale proceeds of rural agricultural land.
The question which need to be asked is why the seller, as an honest person did not insist upon the buyer to show full amount in the sale deed?
Particularly when there would be no dearth of willing buyers. As the seller himself has stated that value of land has further appreciated many folds. Therefore, the seller could have insisted upon the buyer to mention full amount in the deed in fact he could have denied to register the deed which showed lower amount.
The statement of counsel or assessee that assessee had no other income, has been taken at face value without any further verification of assets , bank accounts, etc. of assessee.
In the given facts there can be situation that assessee had some problems with the buyer of land, and to teach lesson to the buyer and also to introduce black money of his own or some other person he has made out a case of excessive sale consideration received from the buyer.
In this case addition made by the AO was confirmed by the CIT(A). However, the honorable High Court has directed for an enquiry about conduct of the AO only, it can be said that actions of AO (Shri Yaduvansh Yadav, Income Tax Officer, Ward-1, Hapur) in framing the assessment and raising demand of income tax against the petitioner are no longer questionable because CIT(A) has confirmed the assessment order and Assessee had to file appeal before Tribunal. However, in the given circumstances action of CIT(A) could be enquired for the same reasons as considered by the honorable High court. The action of team of IT Department which dealt with scrutiny of order of Tribunal and counsels who recommended filing of appeal before the High Court also deserves an enquiry. Filing of an appeal without proper ground and home work simly causes wastage of public money and valuable time of honorable Courts. This must come to an end.