Vikas Bhagoji Shinde Vs ITO (ITAT Pune)
ITAT Pune held that addition towards short term capital gain based on unregistered agreement cannot be sustained since revenue has not brought any evidence on record that possession of property is actually handed over to the purchaser. Accordingly, appeal allowed.
Facts- During the course of assessment proceedings, AO found that the assessee and one other has purchased a piece of land on 28.04.2013 for Rs. 4,15,00,000/- (Including Stamp duty of Rs.4,38,70,400/-) the market rate of which was Rs.4,74,00,000/-, therefore the property appears to be purchased lesser than the market value. Accordingly, AO made addition of Rs.30,50,000/- which according to him was the 50% share of the difference of Fair market value & the actual consideration paid by the assesse, in the hands of the assessee as his income as per provisions of section 56(vii) of the IT Act.
It was also found that the assessee and one other has entered into an un-registered agreement on Rs.100/- stamp paper on 28.09.2013 for sale of above land with M/s. Automatic IT Services and Vrinda Bal for a consideration of Rs.10.00 crore. Accordingly, AO held that the assessee has paid an amount of Rs.2,20,20,400/- as his share towards the purchase of the impugned property and has received an amount of Rs.4,50,50,000/- as his share towards the sale of the above property and accordingly an amount of Rs.2,30,29,600/-(4,50,50,000 – 2,20,20,400) was determined as short term capital gain on so-called sale of above impugned property.
