SIGN IN SUBSCRIBE

News Update

Gold watch of richest Titanic pax auctioned for USD 1.46 millionIraq is latest to criminalise same-sex marriage with max 15 yrs of jail-termUndersea quake of 6.5 magnitude strikes Java; No tsunami alert issuedZelensky says Russia shelling oil facilities to choke supply to Europe20 army men killed in blasts at army base in Cambodia3 Indian women from Gujarat died in mega SUV accident in USJNU switches to NET in place of entrance test for PhD admissionsGST - fake invoice - Patanjali served Rs 27 Cr demand noticeI-T - Bonafide claim of deduction by assessee which was accepted in first round of proceedings does not tantamount to furnishing of inaccurate particulars, simply because it was disallowed later: ITATIndia-bound oil tanker struck by Houthi’s missiles in Red SeaSCO Defence Ministers' Meeting endorses 'One Earth, One Family, One Future'RBI issues draft rules on digital lendingI-T - In order to invoke revisionary jurisdiction u/s 263, twin conditions of error in order and also prejudice to interest of Revenue must be established independently: ITATCRPF senior official served notice of dismissal on charges of sexual harassmentIndian Air Force ushers in Digital Transformation with DigiLocker IntegrationColumbia faculty blames leadership for police action against protestersCX - When process undertaken by assessee does not amount to manufacture, even then CENVAT credit is admissible if such inputs are cleared on payment of duty which would amount to reversal of credit availed: CESTATGoogle to inject USD 3 bn investment in data centre in IndianaCus - The equipments are teaching accessories which enable students in a class to respond to queries and these equipments are used along with ADP machine, same merits classification under CTH 8471 60 29: CESTATUN says clearing Gaza mounds of rubble to take 14 yrsST - When issue is of interpretation, appellant should not be fastened with demand for extended period, the demand confirmed for extended period is set aside: CESTAT
 
I-T - Benefit of exemption claimed u/s 54EC(1)(b) cannot be allowed in absence of properly-registered documentary evidences proving ownership over plot of land: ITAT

 

By TIOL News Service

AHMEDABAD, AUG 30, 2018: THE ISSUE IS - Whether in absence of proper registered documentary evidences proving ownership over plot of land sold, the benefit of exemption claimed u/s 54EC(1)(b) can not be allowed. YES IS THE VERDICT.

Facts of the case

The assessee an Individual, had filed return for relevant AY. During assessment, the AO noticed that assessee had claimed exemption u/s 54EC(1)(b) of the act of long term capital gain arising from sale of two non-agricultural plots. The AO further noted that one of sold property was purchased by the assessee from Shri Kiritkumar Khodabhai Patel on May 30, 1984 under sale agreement executed on plain paper and this document was not registered with any sub-registrar. He had further noticed that second property was shown as purchased for Rs. 19,500/- on July 13, 1990, however nowhere on the document the name of the assessee was mentioned as purchaser of the land. In spite of giving a number of opportunities, the assessee failed to substantiate the ownership of the property with relevant evidences. Consequently, the AO disallowed the exemption claimed u/s. 54EC(1)(b) of the act and assessed the income as income from other sources. On appeal, CIT(A) sustained the addition made by the AO.

On appeal, the Tribunal held that,

++ in spite of giving a number of opportunities, the assessee failed to substantiate the ownership of immovable property with registered document. The assessee failed to prove his claim of ownership with recognized document as required in the case of purchase of immovable property. Any of the right relating to immovable property, be it a sale, exchange or relinquishment or extinguishments of any rights or compulsory acquisition relate to can be transferred subject to the provisions of the Indian Registration Act, 1908. Section 17 of the Indian Registration Act lays down very clearly that the documents which purports or operates to create, declare, assign, limit or extinguish, whether in the present or in future, any right, title or interest, whether vested or contingent, to or in immovable property shall be registered. No substance was found in the submission of the assessee that how the properties under the registered ownership of other persons can be considered as owned by the assessee. It was observed that the assessee failed to prove his claim of ownership with recognized document as required in the case of purchase of immovable property. The assessee has never owned these plots. There was no evidence to prove that the plot was owned by the assessee. The assessee is claiming certain facts which were in his exclusive knowledge without any relevant documentary evidences. Hence the appeal of the assessee is dismissed.

(See 2018-TIOL-1371-ITAT-AHM)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri N K Singh, recipient of TIOL FISCAL HERITAGE AWARD 2023, delivering his acceptance speech at Fiscal Awards event held on April 6, 2024 at Taj Mahal Hotel, New Delhi.

TOP NEWS

AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST