Income Tax Act, 1961
--Capital gains--Long-term capital gains Amount shown in registered sale deed lower to sale agreement --Assessing officer asked assessee to explain the difference in the sale consideration in the two documents, viz. sale agreement and sale deed. Assessee submitted an application under section 144 to ACIT where ACIT noted that the assessment in the case of purchaser had been completed as per the income returned by assessee's wife which represented her share by purchase of property at Rs. 6,48,000 and hence the objection of assessee was rejected. Assessing officer adopted the sale consideration of Rs. 6,48,000 and computed long-term capital gain accordingly. Held: Was justified as the amount of Rs. 6,48,000 had been accepted as the purchaser's investment in her income-tax assessment and the purchaser had shown investment at Rs. 6,48,000 as the sale consideration for acquisition of property, therefore, it would be an anomaly if in the case of purchaser, the sale consideration of Rs. 6,48,000 was accepted and it was not accepted in the case of the seller.
Income Tax Act, 1961 Section 45
In The Madras High Court
R. Banumathi & K. Ravichandra Baabu JJ.
M. Basheer Ahamed v. CIT
Tax Case (Appeal) No. 278 of 2010
18 February, 2013
Appellant by : J. Balachandran for Sri Sridhar
Respondent by : J. Narayanaswamy