Mere book entries cannot change ownership of the property

Asad Naeemuddin Moulvi Vs ITO (ITAT Mumbai)

ITAT Mumbai held that property sold in individual capacity cannot be claimed to be owned by the partnership firm simply by way of making entries in the books of accounts of the partnership firm. Accordingly, Capital gain on sale of property taxable in hands of individual.

Facts-

During the course of assessment proceedings, AO made two additions. Firstly, the addition of ₹10,39,763/- was made for cash credits appearing in books of accounts which were deposited in saving bank accounts and held by AO as unexplained cash credit in terms of section 68 of the Act.

Secondly, the addition of ₹45,13,124/- was made for capital gain on sale of the property not reported by the assessee in the return of income.

Please become a Premium member. If you are already a Premium member, login here to access the full content.