COMMISSIONER OF INCOME TAX Vs. ABDUL WAHAB

JUDGEMENT

(1.) This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act', for short) has been filed by the revenue. The subject matter of the appeal pertains to the Assessment Year 2006-07. The appeal was admitted by a Bench of this Court vide order dated 24.08.2016 on the following substantial questions of law:

(2.) Facts leading to filing of this appeal briefly stated are that a search was conducted under Section 132 of the Act in the premises of one Prakash Shetty, partner of M/s. Gold Finch Hotels Group and others at Bengaluru. During the course of search, certain incriminating material were found and it was also found that the assessee had sold certain properties and had not paid capital gains. Thereupon, proceedings under Section 153C of the Act read with Section 143(3) were initiated in the case of the assessee who is an individual. The order of assessment was passed by the Assessing Authority on 28.10.2011. The Assessing Authority inter alia held that as per the seized material, the assessee had entered into an agreement for sale as well as executed irrevocable General Power of Attorney on 21.12.2005 in favour of M/s. Trishul Developers for sale of land measuring 1.47,898.98 square feet situated in Veerasandra Village of Sy.No.48 and 48/1 and has received total sale consideration of Rs.7,90,68,395/- out of which, a sum of Rs.5,01,37,720/- was paid by way of Cheque and Rs.2,97,27,675/- was paid by way of cash to the assessee. It was further held that the aforesaid fact was confirmed by Prakash Shetty namely partner of M/s. Trishul Developers in the course of search. As the assessee did not offer the sale consideration to tax, therefore, the Assessing Authority made an addition of Rs.7,57,65,395/-.

(3.) Thereupon, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), who by an order dated 13.02.2013 dismissed the appeal preferred by the assessee. The assessee thereupon filed an appeal before the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal' for short). The Tribunal, by an order dated 19.12.2014, inter alia, held that the permissive possession given by the assessee to the holder of the agreement cannot be considered as transfer and therefore, provisions of Section 2(47) of the Act cannot be invoked to the fact situation of the case. In the aforesaid factual background, the revenue has filed this appeal.