Vinod Nihalchand Jain Ltd. Vs ITO (ITAT Mumbai)
No Capital Gains When Assessee Is Only Legal Joint Owner & Not Beneficial Owner
Assessee is an individual who did not file the return of income since the taxable income was below the basic exemption limit for the year under consideration . Notice u/s 148 was issued and proceedings u/s 147 were initiated on the basis of the information received that the assessee has sold immovable property. Assessee submitted that the immovable property was originally purchased by his brother and the name of the assessee and his father were added to the property as joint owners out of natural love and affection. The property was sold for a total consideration of Rs.54 Lakh, which was entirely credited to the bank account of the assessee’s brother. Thus, the contention of the assessee was that, even though the property was purchased in the joint names, the actual possession and the 100% right of the property belonged to his brother, as the whole consideration was paid by him at the time of purchase of the said property. Assessee also furnished the original purchase deed, bank statement of his brother highlighting the receipt of consideration in his account, Form 26AS stating that the TDS on the property has been fully deducted on the PAN of his brother, sale agreement, and the ITR along with computation for the year under consideration of his brother.
