IN THE INCOME TAX APPELLATE TRIBUNAL
             DELHI BENCHES : C : NEW DELHI

           BEFORE SHRI R.S. SYAL, VICE PRESIDENT
                            AND
           SMT. BEENA A. PILLAI, JUDICIAL MEMBER

                        ITA No.537/Del/2016
                      Assessment Year : 2007-08

ACIT,                       Vs. Kanwar Singh Tanwar,
Central Circle-2,               127, Asola Fatehpur Beri,
New Delhi.                      New Delhi.

                                  PAN: AADCR3293G

  (Appellant)                                 (Respondent)

            Assessee By       :   Smt. Deepali.
            Department By     :   Shri Parikshit Jain, CA

         Date of Hearing             :    17.09.2018
         Date of Pronouncement       :    18.09.2018

                                  ORDER
PER R.S. SYAL, VP:
      This is an appeal filed by the Revenue against the order dated

12.11.2015 passed by the CIT(A) in relation to the assessment year 2007-

08.
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2.   The only substantial issue raised in this appeal is against the treatment

of income of Rs.14,46,87,324/- on account of sale of shares of M/s Mudra

Finance Ltd., as `Long-term capital gain' as against `Income from other

sources' treated by the Assessing Officer.

3.   Succinctly, the facts of the case, as recorded in the assessment order,

are that a search and seizure action was carried out u/s 132 of the Income-

tax Act, 1961 (hereinafter also called `the Act') on 8.02.2013 in Kanwar

Singh Tanwar group of cases which included the assessee as well. A

survey u/s 133A was also conducted on 25.04.2013 at M/s Mudra Finance

Ltd., which was having a land at Dharuhera, Gurgaon, for the development

of residential flats. The AO recorded in para 5 of his order that the assessee

transferred shares of M/s Mudra Finance Ltd., to three entities and the

income therefrom was reflected as `Long-term capital gain' of

Rs.14,46,87,324/- in the year under consideration. He treated this income

as arising from the normal business receipts and held it to be chargeable

under the head `Income from other sources.' The ld. CIT(A) noticed that

shares of M/s Mudra Finance Ltd., were actually transferred in the

succeeding year and, hence, the Assessing Officer erred in treating income
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from sale of such shares as `Income from other sources' in relation to the

year under consideration. The Revenue has come up in appeal against this

finding recorded by the ld. CIT(A).

4.   We have heard both the sides and perused the relevant material on

record. It is obvious from the assessment order that the entire discussion

focuses on the shares of M/s Mudra Finance Ltd., allegedly sold by the

assessee in the previous year relevant to the assessment year under

consideration, resulting into long-term capital gain of Rs.14.46 crore in the

year. As against that, the ld. CIT(A) has recorded that the transfer of shares

of M/s Mudra Finance Ltd., took place in the succeeding year and not the

year in question.

5.    We have gone through page Nos.8 and 9 of the paper book which are

copy of Income-tax return and the Computation of income for the year

under consideration. From such Income-tax return, it can be seen that no

income from transfer of shares of M/s Mudra Finance Ltd., was offered by

the assessee. Page Nos.11 and 12 represent Income-tax return and the

Computation of income for the assessment year 2008-09. The assessee, in







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fact, as recorded by the ld. first appellate authority, declared income from

transfer of shares of M/s Mudra Finance Ltd., under the head `Capital

gains' in its return for the assessment year 2008-09, which was stated to

have been assessed accordingly. The ld. DR could not point out any factual

inaccuracies in the position recorded in the impugned order. Thus, it is

apparent that no transfer of shares of M/s Mudra Finance Ltd., took place

during the year under in question warranting any consideration of the issue

in the instant proceedings. We, therefore, uphold the impugned order on

this score.

6.   Having dealt with the issue on merits, there is no need to deal with the

legal issue taken up in this appeal through ground no. 3 that the ld. CIT(A)

erred in law in not sustaining the assessment order framed u//s 153A of the

Act on the ground that no incriminating material was found in this regard.




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7.        In the result, the appeal of the Revenue is dismissed.

          The order pronounced in the open court on 18.09.2018.

               Sd/-                                            Sd

           [BEENA A. PILLAI]                              [R.S. SYAL]
          JUDICIAL MEMBER                               VICE PRESIDENT

Dated, 18th September, 2018.
dk
Copy forwarded to:
     1.   Appellant
     2.   Respondent
     3.   CIT
     4.   CIT (A)
     5.   DR, ITAT

                                                       AR, ITAT, NEW DELHI.




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