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.
ITA No.537/Del/2016
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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ITA No.537/Del/2016
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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