The Chennai bench of the Income Tax Appellate Tribunal (ITAT) ruled that amount filed through the purchaser of property to the tenant does not get taxed in the capital asset of the owner.
The 4 taxpayer belongs to the same family. Smt. Halima received the property which has an area of 4400 sq ft from her father Shri N. Aziz Noor Mohamed, with the settlement on 2/2/2007. In investigation beneath section 132 of the income tax act 1961, the same would be revealed that the money of Rs 2,39,21,100 was paid in cash to Shri A. Imtiaz and his family member also to the documented sale value. No one furnished an income tax return for the assessment year 2012-12 related to the former year 2011-12.
The assessing officer imposed a penalty beneath section 271F of the act through the order on 21/08/2014 for the case of all 4 family members leaving the penalty of Rs 5000 each on default towards losing to filed ITR by the due date permitted under section 139(1) of the Act and completed the assessments in all 4 cases by adding the on-money for calculation of Long term Capital Gains at Rs 87,58,114 for each of the family members.
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The deal takes place only between the buyer of the property and tenants who occupies the place in which the buyer would not be provided with any information for attaining the number of Rs 7.40 crores/Rs.6.65 crores where the same was aggrieved to file for the vacation of the tenants of the place or the number of occupants in that place.
No tax is to be imposed on the rent received while the taxpayer is on vacation and the property is vacant in the meantime. No investigation would be held in the residence of the taxpayer and no proof to mention the taxpayer has obtained money for the property sale.
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Shri V. Durga Rao, Judicial Member & Shri G. Manjunatha, Accountant Member sees that no allegation will be maintained excluding any evidence and set aside the order of the CIT(A) in ensuring the addition and direct the Assessing Officer to adopt the guideline value adopted for the stamp duty purposes by the SRO of ₹.1,52,65,558/- as FMV of the property under section 50C of the Act.
The petition furnished through the taxpayer is permitted for statistical purposes. Shri Yeswanthram appeared for the appellant and Shri V. Nandakumar appeared for the respondent.
