CIT Vs. MEERA GOYAL

JUDGEMENT

(1.) This appeal by the revenue is directed against the order dated 05.04.2011 passed by the Income Tax Appellate Tribunal, New Delhi in ITA No.604/Del/2011 in respect of the assessment year 2007-08.

(2.) The respondent/ assessee has house property at 37, Friends Colony, New Delhi. On 28.01.2007 the respondent entered into an agreement to sell the said property to Shinestar Buildcon (P) Ltd. The sale consideration of the property was agreed upon at Rs. 150 crores. Earnest money under the agreement was determined to be Rs. 36 crores. In respect of the said earnest money of Rs. 36 crores the respondent/ assessee received six cheques as under: - <FRM>JUDGEMENT_214_ILRDLH23_2013_1.html</FRM>

(3.) The balance amount was payable by 30.03.2007 and time was the essence of the contract. Clause 3 of the said agreement provided that if the purchaser failed to pay the balance consideration by that date, the seller (respondent/ assessee) had the right to forfeit the earnest money and the purchaser Shinestar Buildcon (P) Ltd. would have no claim on the property whatsoever and the agreement to sell would stand terminated.