The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has ordered the income tax department to conduct an investigation on a matter where the property has been handed over inspite of the registration done owing to non-receipt of the amount.
The assessee is an individual deriving income from property, share income as partner in M/s S.M. & Sons and M/s Santokh Singh & Sons and interest income. The assessee claimed that though the registration of the sale deed has been executed before the sub-Registrar, the assessee contends that in the absence of any receipt of payment, no sale of property could take place and no capital gain arises.
Noting that this is a classic case wherein the property has not been handed over inspite of the registration done owing to nonreceipt of the amounts, Dr. B. R. R. Kumar, Accountant Member observed that “this issue is a grey matter which needs to be proved undisputedly owing to the conflicting nature of the documents as filed with the Income Tax Department, Registration Department and the arguments taken before us by both the parties.”
“No material has been brought on record by the revenue to prove the receipt of the money against argument that the assessee has not received the amounts. The purchaser has paid stamp duty of Rs.58.50 lacs which cannot be expected to be spent profligately by the purchaser . The purchaser has not taken any steps to occupy the property as per the documents. At the same time, the revenue has also not confirmed with regard to the payments received by the assessee , as to which account the amounts have been credited or as to the receipt of money by both the parties namely, the assessee and Sh. Manjit Singh,” the Tribunal said.
Remanding the matter back to the assessing officer, the Tribunal added that “Under these circumstances, it needs to be investigated and con firmed by the revenue that the assessee has indeed received monies from BIC Logistics Ltd. Investigations are also required to find out the fact whether the assessee is still in the possession of the property or parted with the property.”
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