JCIT (OSD), Range-3, Hyd, Hyderabad v. D.Sesha Giri Rao, Hyd, Hyderabad

CO 50/HYD/2016 | 2007-2008
Pronouncement Date: 30-11-2017 | Result: Dismissed

Appeal Details

RSA Number 5022523 RSA 2016
Assessee PAN ACNPD7893D
Bench Hyderabad
Appeal Number CO 50/HYD/2016
Duration Of Justice 1 year(s) 2 month(s) 29 day(s)
Appellant JCIT (OSD), Range-3, Hyd, Hyderabad
Respondent D.Sesha Giri Rao, Hyd, Hyderabad
Appeal Type Cross Objection
Pronouncement Date 30-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 30-11-2017
Date Of Final Hearing 27-12-2016
Next Hearing Date 27-12-2016
First Hearing Date 27-12-2016
Assessment Year 2007-2008
Appeal Filed On 01-09-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SMT. P. MADHAVI DEVI JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN ACCOUNTANT MEMBER ITA NO. 760/HYD/2016 AND C.O. NO. 50/HYD/2016 ASSESSMENT YEAR: 2007-08 JT. COMMISSIONER OF INCOME-TAX (OSD) CIRCLE 3(1) HYDERABAD. VS. D. SESHA GIRI RAO HYDERABAD. PAN ACNPD 7893D (APPELLANT) (RESPONDENT/CROSS OBJECTOR) REVENUE BY : DR. SIBENDU MOHARANA ASSESSEE BY : SHRI A.V. RAGHURAM DATE OF HEARING : 14-09-2017 DATE OF PRONOUNCEMENT : 30-11-2017 O R D E R PER S. RIFAUR RAHMAN A.M.: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(A) - 3 HYDE RABAD DATED 02-03-2016 FOR AY 2007-08. THE ASSESSEE ALSO FILED C.O. AGAINST THE SAID ORDER OF CIT(A). 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE AN INDIVIDUAL AND DIRECTOR IN M/S SEC INDUSTRIES (P) LTD FILED H IS RETURN OF INCOME FOR AY 2007-08 ON 01/10/2007 DECLARING INCOME OF R S. 63 90 113/- UNDER THE HEADS SALARIES AND OTHER SOURCES INCLUDIN G AGRICULTURAL INCOME OF RS. 81 500/-. AO RECEIVED INFORMATION FRO M ITO (INTELLIGENCE) I HYDERABAD ON 4 TH MARCH 2014 VIDE LETTER DATED 28/02/2014 THAT DURING THE RELEVANT AY 2007-08 ASSE SSEE SOLD A CAPITAL ASSET I.E. A NON-AGRICULTURAL LAND ADMEASU RING 21296 SQ.YDS. (4.16 ACRES) IN SURVEY NO. 194/1 BEGUMPET (V) BAL ANAGAR (M) PRAKASH NAGAR SECUNDERABAD FOR A CONSIDERATION OF RS. 11 LAKHS 2 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO VIDE DOCUMENT DTD. 05/09/2006 WHEREAS THE MARKET VA LUE OF THE PROPERTY AS PER THE REGISTRATION AUTHORITIES COMES TO RS. 53.24 CRORES. AS THE ASSESSEE HAD NOT DISCLOSED THE SAID TRANSACT ION IN THE RETURN OF INCOME REASSESSMENT PROCEEDINGS U/S 147 OF THE INCOME-TAX ACT 1961 ( IN SHORT THE ACT) WERE INITIATED WITH THE PRIOR APPROVAL OF THE ADDL. CIT RANGE 3 HYD. ACCORDINGLY NOTICE U/S 148 WAS ISSUED ON 18/03/2014 AND SERVED ON THE ASSESSEE. IN RESPONSE TO THE SAID NOTICE THE ASSESSEE VIDE LETTER 02/04/2014 STATED THAT HE HAD ALREADY FILED RETURN OF INCOME FOR AY 2007-08 ON 01/10/2007 AND SOUGHT REASONS FOR REOPENING THE ASSESSMENT. REASONS WERE ACCORDINGLY FURNISHED VIDE LETTER DATED 25/06/2014 ALONG WITH N OTICE U/S 143(2). DURING THE COURSE OF ASSESSMENT PROCEEDINGS ASSESS EE HAD FILED SERIES OF AGREEMENTS/SALE DEEDS IN RESPECT OF THE S AID PROPERTY UNDER CONSIDERATION. THE DETAILS OF THE AGREEMENTS IN THE ORDER OF DATES IN THE CHRONOLOGICAL ORDER AND BRIEF DETAILS CONTAININ G IN THE AGREEMENTS ARE AS FOLLOWS: A : DATE: 05-11-1967 FOUR PERSONS VIZ. SRI KOGANTI MADHUSUDHAN RAO SR I KOGANTI BHAVANI SHANKAR RAO SRI JASTI LAKSHMAIAH AND SMT.N.ANNAPURNA DEVI (HEREIN AFTER REFERRED TO AS M R.KMR & 3 OTHERS OR 4 CO-OWNERS FOR THE SAKE OF CONVENIENCE) ALL FROM KUCHIPUDI VILLAGE AMRATHALUR (M) GUNTUR DISTRICT PURCHASED 7 ACRES (ON ACTUAL MEASUREMENT THIS WAS 8 ACRES) OF NON- AGRICULTURAL LAND IN SURVEY NO.194/1 BEGUMPET REVE NUE (V) BALANAGAR (M) R.R.DISTRICT BEHIND PRAKASH NAGAR SECUNDERABAD FROM SRI MIRZA ALI MOOSA RAZA VIDE RE GISTERED SALE DEED NO.2568/1967 DT 05-1-1967 FOR AN AMOUNT OF RS.28 000. B: DATE: 27-11-1967 SRI K.MADUSUDHAN RAO ENTERED INTO AN AGREEMENT OF S ALE WITH SRI D.SESHAGIRI RAO THE APPELLANT FOR SALE OF 1 A CRE OF LAND FOR A CONSIDERATION OF RS.4 000. THIS AGREEMENT IS UN-R EGISTERED. C : DATE: 24-04-1969 SRI K.MADHUSUDAN RAO ENTERED INTO ANOTHER AGREEMENT OF SALE WITH SRI D.SESHAGIRI RAO FOR SALE OF AC. 2.33 CENT S FOR A 3 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO CONSIDERATION OF RS.4 700. THIS AGREEMENT IS AGAIN UN- REGISTERED. IN THIS AGREEMENT IT IS MENTIONED THA T (I) THAT THE VENDEE UNDERTAKES TO CONVERT 7 ACRES O F INAM LAND INTO PATTA LAND AT HIS OWN EXPENSE WITHIN A PERIOD OF 5 MONTHS FROM THE DATE OF AGREEMENT. (II) THAT OUT OF 7 ACRES OF PATTA LAND ONLY AC 2.3 3 CENTS WOULD BE REGISTERED IN THE NAME OF VENDEE AFTER CONVERTIN G INAM LAND TO PATTA LAND. (III) THAT THE ABOVE AGREEMENT STANDS CANCELLED IF THE LAND IS NOT CONVERTED INTO PATTA (IV) OUT OF AGREED CONSIDERATION OF RS.4 700 ONLY AN AMOUNT OF RS.2 000 WAS PAID AND THE BALANCE RS.2 700 WAS TO B E PAID WITHIN A MONTH D: DATE: 29-09-1980 SHRI K.SAMBASIVA RAO (OWNER OF ADJACENT LAND) AND T HE 4 OWNERS GAVE POWER OF ATTORNEY TO SRI D.SESHAGIRI RA O (DSR) TO SELL 33 ACRES OF LAND TO OBTAIN PERMISSION UNDER U RBAN LAND CEILING ACT TO GET APPROVAL FOR LAY-OUT TO CONSTR UCT TO SIGN ANY SALE DEED. NO AMOUNT WAS MENTIONED IN THIS DOCUMENT . SRI K.SAMBASIVA RAO IS THE OWNER AND ALSO GPA HOLDER FO R THE LAND TO THE EXTENT OF 25 ACRES WHICH IS ADJACENT TO THE SUBJECT PROPERTY OF AC. 8S. THIS IS ALSO AN UNREGISTERED DO CUMENT. NO CONSIDERATION IS MENTIONED. E : DATE: 06-03-1990 THE 4 OWNERS ENTERED AN AGREEMENT OF SALE WITH SRI DSR THE SALIENT FEATURES OF THIS AGREEMENT ARE: (I) THIS AGREEMENT REFERS TO EARLIER AGREEMENTS DAT ED 27-11- 1967 24-04-1969 AND 29-09-1980. (II) THAT THE VENDEE OBTAINED EXEMPTION FROM URBAN LAND CEILING IN PURSUANCE OF THE EARLIER AGREEMENTS / PO WER OF ATTORNEY (POA) (III) THAT THE GOVT. TOOK OBJECTION IN RESPECT OF U RBAN LAND CEILING EXEMPTION AGAINST WHICH A WRIT PETITION WAS FILED IN HIGH COURT AND ULC EXEMPTION WAS RESTORED BY THE HO N'BLE HIGH COURT. (IV) BECAUSE OF THE ABOVE LEGAL PROBLEMS THE EARLI ER AGREEMENTS WERE NOT EXECUTED. 4 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO (V) SINCE THE ISSUES ARE SORTED OUT THE VENDORS WI LL BE OBLIGED TO RENEW THE ABOVE SAID AGREEMENTS IN RESPECT OF 8 ACRES OF LAND (VI) THAT ALL THE VENDORS ADMIT SALE OF LAND 'OF 8 ACRES (VII) THAT OUT OF 8 ACRES OF LAND LAND OF AC 3.33 CENTS THE POSSESSION OF WHICH WAS ALREADY HANDED-OVER AS RECO RDED AND ACKNOWLEDGED IN THE AGREEMENT OF SALE ON 29-09-1980 . (VIII) THAT THE BALANCE LAND OF AC 4.67 CENTS WAS A LSO DELIVERED TO THE PURCHASER AND THE PURCHASER IN POSSESSION OF THE SAME. FOR THE SAKE OF CONVENIENCE THE RELEVANT PARAS ARE REPRODUCED: ' .... 3. THAT OUT OF THE SAID EXTENT OF AC.8.00 LA ND IN SURVEY NUMBER 194/1 AN EXTENT OF AC.3.33 CENTS HAD ALREADY BEEN FINALLY MADE OVER AND POSSESSION DELIV ERED BY THE VENDORS TO THE PURCHASER AS RECORDED AND ACKNOWLEDGED IN THE AGREEMENT OF SALE DATED 29-9-19 80; 4. THAT THE POSSESSION OF THE OTHER EXTENT OF AC. 4 .67 CENTS OF LAND IN THE SURVEY NUMBER 194/1 IS ALSO BE ING DELIVERED TO THE PURCHASER FORMALLY TODAY UNDER THI S AGREEMENT OF SALE ALTHOUGH THE PURCHASER IS VIRTUA LLY IN POSSESSION AND ENJOYMENT THEREOF BY VIRTUE OF THE GENERAL POWER OF ATTORNEY DATED 29-09-1980 EXECUTED IN HIS FAVOUR. BY VIRTUE OF THIS DOCUMENT THE PURCHAS ER SRI D.SESHAGIRI RAO WILL BE DEEMED TO HAVE BEEN DELIVER ED THE POSSESSION OF THE ENTIRE EXTENT OF AC. 8. 00 LA ND AND HIS POSSESSION THEREOF SHALL NOT BE QUESTIONED INTEREFERED WITH OR OBSTRUCTED IN ANY MANNER WHATSO EVER AND HIS POSSESSION THEREOF SHALL ALSO HAVE THE PROT ECTION OF EQUITIES U/S 53-A OF THE TRANSFER OF PROPERTY AC T; 5. THAT OUT OF THE SAID EXTENT OF AC. 8. 00 LAND A N EXTENT OF AC.3.33 CENTS OF LAND HAS ALREADY BEEN DELIVERED POSSESSION OF TO THE PURCHASER BY THE VENDORS AND T HE VENDORS HAVE ALREADY RECEIVED THE FULL CONSIDERATIO N IN RESPECT THEREOF AND THE VENDORS DO NOT HAVE ANY CLA IM WHATSOEVER IN RESPECT OF THE AC.3.33 CENTS OF LAND EITHER IN REGARD TO THE CONSIDERATION OR OTHERWISE AND THE VENDORS TO HEREBY DECLARE AGREE ADMIT ACKNOWLEDG ED AND COVENANT THAT THEY SHALL AT ALL TIMES IN FUTU RE AS REQUIRED BY THE PURCHASER; REGISTER A SALE DEED OR DEEDS EITHER IN HIS FAVOUR OR IN FAVOUR OF HIS NOMINEE OR NOMINEES AS THE CASE MAY BE CONVEYING THEIR RIGHT TITLE 5 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO AND INTEREST THEREON EITHER TO THE PURCHASER OR HIS NOMINEE OR NOMINEES AS THE CASE MAY BE; 6. THE VENDORS DO HEREBY FURTHER DECLARE AGREE AND COVENANT THAT THEY ARE EXECUTING A FRESH GENERAL PO WER OF ATTORNEY TODAY IN FAVOUR OF THE PURCHASER EMPOWE RING HIM ALSO TO EXECUTE SALE DEED 'OR DEEDS AS THE CAS E MAY BE IN FAVOUR OF ANY PERSON AUTHORITY INSTITUTION AS THE CASE MAY BE FOR CONVEYING THE RIGHTS TITLE AND IN TEREST OF THE VENDORS AND DELIVER POSSESSION OF THE SAID EXTE NT OF AC.3.33 CENTS IN SURVEY NUMBER 194/1 TO SUCH PURCHA SERS AND THE VENDORS DO HEREBY DECLARE AGREE AND COVENA NT THAT THEY SHALL NOT CLAIM ANY FURTHER SUM OR CONSID ERATION FROM THE PURCHASER IN RESPECT OF THE SAID EXTENT OF AC. 3.33 CENTS OF LAND; 7. THAT IN RESPECT OF THE REMAINING EXTENT OF AC. 4 .67 CENTS OF LAND THE VENDORS DO HEREBY DECLARE AGREE AND COVENANT THAT THEY SHALL SELL THE SAID EXTENT OF LA ND TO THE PURCHASER OR HIS NOMINEE OR NOMINEES AS THE CASE M AY BE FOR A TOTAL CONSIDERATION OF RS.24 00 000 (RUPEE S TWENTY FOUR LAKHS) TO BE PAID BY HIM IN THE MANNER DETAILED HEREINBELOW: (A) A SUM OF RS.2 00 000 (RUPEES TWO LAKHS ONLY) TO BE PAID ON OR BEFORE 30-04-1990; AND (B) THE BALANCE AMOUNT TO BE PAID ONLY AFTER DE- NOTIFICATION OF THE SAID EXTENT OF LAND FROM THE PR OPOSED ACQUISITION FOR BUDDHA POORNIMA PROJECT SPONSORED B Y THE GOVT. AND AFTER THE CHANGE OF PURPOSE IN THE EXEMPT ION ORDER VIZ. G.O. MS. NO. 4586 DATED 10-10-1980 IN FA VOUR OF THE PURCHASER AND FOR THE PURPOSE HE MAY APPLY F OR. THE AID AMOUNT WILL BE PAID WITHIN ONE YEAR FROM SU CH DATE; 8. THE VENDORS DO HEREBY DECLARE AGREE AND COVENAN T THAT THEY ARE DELIVERING THE POSSESSION TO THE PURC HASER OF THE REMAINING EXTENT OF LAND WHICH ACCORDING TO THEM MEASURES AC. 4.67 CENTS SUBJECT HOWEVER TO ACTUAL SURVEY MEASUREMENT AND FINDING OF THE SAID LAND BY SUCH SURVEY AND SUBJECT TO THE CONDITIONS REFERRED TO AB OVE. 9. THAT IN ORDER TO IMPLEMENT AND TO FRUCTIFY THIS AGREEMENT OF SALE ALSO IN RESPECT OF THIS EXTENT OF AC. 4.67 CENTS OF LAND THE VENDORS ARE ALSO EXECUTING A GENERAL POWER OF ATTORNEY (A COMPREHENSIVE ONE INCLUDING THE POWER IN RESPECT OF THE SAID EXTENT O F AC.3.33 CENTS REFERRED TO ABOVE) EMPOWERING THE 6 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO PURCHASER TO DO ALL THINGS NECESSARY FOR THE PURPOS E OF SECURING PERMISSIONS EXEMPTIONS AND ALL NECESSARY CLEARANCES REQUIRED UNDER ANY ENACTMENT WHATSOEVER RELATING TO THE SAID LAND AND FOR THE PURPOSE OF GE TTING THE SALE DEED OR DEEDS EXECUTED FINALLY AS WOULD BE PRO VIDED FOR IN DETAIL IN THE SAID GENERAL POWER OF ATTORNEY : 10. THE VENDORS DO HEREBY DECLARE AGREE AND COVENA NT THAT THE PURCHASER WHO HAS ALREADY BEEN DELIVERED POSSESSION OF THE SAID EXTENT OF LAND UNDER THE AGR EEMENT OF SALE REFERRED TO ABOVE AND UNDER THE SAID GENERA L POWER OF ATTORNEY DATED 29-09-1980 AND SHALL BE DEE MED TO BE IN POSSESSION THEREOF AS THE PURCHASER UNDER THOSE AGREEMENTS AS WELL AS UNDER THIS AGREEMENT OF SALE AND HE SHALL BE HAVING ALL THE EQUITIES GUARANTEES BE NEFITS AND PROTECTION OF PART PERFORMANCE OF THIS AGREEMEN T OF SALE AS PROVIDED FOR UNDER SECTION 53A OF THE TRANS FER OF PROPERTY ACT. THE ABOVE CLAUSES ARE SUMMARIZED AS UNDER: (A) THAT SRI DSR WAS ALREADY IN POSSESSION OF LAND OF 8 ACRES (B) IN RESPECT OF LAND OF AC 3.33 CENTS THE SALE C ONSIDERATION WAS ALREADY RECEIVED BY THE VENDORS. (C) THE BALANCE LAND OF AC. 4.67 CENTS SHALL BE SOL D FOR A CONSIDERATION OF RS. 24 LAKHS TO BE PAID AS UNDER: (I) SUM OF RS.2 LAKHS TO BE PAID BY 30-04-1990 (II) THE BALANCE AMOUNTS WILL BE PAID WITHIN ONE YE AR FROM THE DATE OF DE-NOTIFICATION OF THE LAND FROM THE PROPOS ED ACQUISITION FOR BUDDHA PURNIMA PROJECT OF GOVT. OF A. P. (D) THE VENDORS ALSO WOULD EXECUTE A GENERAL POWER OF ATTORNEY (GPA) IN RESPECT OF 8 ACRES OF LAND TO DO ALL NECES SARY THINGS FOR SECURING PERMISSION / CLEARANCE / EXEMPTION ETC . (E) THAT THE PURCHASER HAS PROTECTION U/S 53A OF TR ANSFER OF PROPERTY ACT (F) THIS AGREEMENT OF SALE DATED 06-03-1990 IS UN-R EGISTERED. HOWEVER THIS DOCUMENT WAS NOTARIZED. ALL THE 4 OWNERS HAVE ACKNOWLEDGED THE RECEIPT OF R S. 50 000 EACH TOTAL AMOUNT TO RS.2 LAKHS BY WAY OF STAMPED RECEIPT. F : DATE: 07-03-1990 7 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO GENERAL POWER OF ATTORNEY WAS ENTERED BETWEEN THE 4 OWNERS AND SRI DSR. THE SALIENT FEATURES ARE: (I) THIS POWER OF ATTORNEY (POA) IS IRREVOCABLE. (II) THE OWNERS WILL HAVE NO RIGHT TO REVOKE OR CAN CEL THIS GPA AGREEMENT AS THIS GPA IS FOR CONSIDERATION. (III) THE GPA IS AUTHORIZED TO SELL MORTGAGE GIFT DISPOSE OFF THE SAID LAND OF 8 ACRES (IV) THIS DOCUMENT IS REGISTERED IT IS TO BE MENTIONED THAT THIS IS A FIRST REGISTE RED DOCUMENT BY WHICH SRI DSR HAS BECOME GPA HOLDER THIS IS IRREVO CABLE GPA OBTAINED FOR CONSIDERATION WITH ALL THE RIGHTS OF T HE OWNER TO SELL TO MORTGAGE TO DISPOSE OFF IN ANY MANNER. AT THE COST OF REPETITION IT IS TO BE MENTIONED THAT THROUGH THE REGISTERED DOCUMENT DATED 05-11-1967 THE 4 OWNERS PURCHASED T HE PROPERTY FROM SRI MIRZA ALI MOZA RAZA AND THERE WER E SERIES OF UNREGISTERED AGREEMENTS I POAS FOLLOWED BY REGISTER ED GPA IN FAVOUR OF SRI DSR WHICH IS IRREVOCABLE ON 07-03-19 90. G: DATE: 20-11-1995 THIS IS A SALE AGREEMENT BETWEEN 4 OWNERS REPRESENT ED BY GPA HOLDER SRI DSR AND M/S NDL ESTATES (P) LIMITED FOR SALE OF AC.4.16 CENTS OF LAND (21296 SQ.YDS) FOR A CONS IDERATION OF RS.1 27 77 600. THE AMOUNTS WERE PAID AS UNDER: (I) RS.11 LAKHS TO THE SELLERS THROUGH GPA HOLDER SRI DSR : AN AMOUNT OF RS.11 LAKHS WAS PAID BY CHEQUE NO.6822 40 DATED 04-03-1995 DRAWN ON ALLAHABAD BANK HYDERABAD TO DS R. (II) RS.30 LAKHS TO BE PAID ON OR BEFORE 30-06-1996 THE REMAINING AMOUNT OF RS.81 77 600 TO BE PAID ON OR B EFORE 30- 11-1996 SUBJECT TO CLEARANCE OF LAY-OUT BY HYDERAB AD URBAN DEVELOPMENT AUTHORITY AND MUNICIPAL CORPORATION OF HYDERABAD FAILING WHICH THE PURCHASER WILL PAY INT EREST @ 18%. (III) IN ANY CASE THE ENTIRE PRICE SHALL BE PAID B EFORE 31-12- 1996 FAILING WHICH THE AGREEMENT STAND CANCELLED A ND THE SELLERS REFUND THE AMOUNTS BEFORE JUNE 1997. (IV) THE POSSESSION OF THE PROPERTY WILL BE HANDED- OVER ON PAYMENT OF PRICE AND NECESSARY SALE DEED WOULD BE E XECUTED IN FAVOUR OF THE PURCHASER. 8 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO (V) THIS AGREEMENT IS UN-REGISTERED THERE IS NO EVIDENCE TO SHOW THAT AMOUNT OF RS.11 L AKHS WAS PAID TO CO-OWNERS BY DSR. IT WAS CLAIMED THAT THERE WAS SPATE OF LITIGATIONS WITH RESPECT TO SUBJECT PROPERTY WITH THE THIRD PARTIES BETWEEN 199 5 TO 2006. H: DATE: 05-09-2006 A REGISTERED SALE-CUM-GPA WAS ENTERED BY THE OWNERS REPRESENTED BY GPA HOLDER SRI DSR IN FAVOUR OF M/S NDL ESTATES (P) LTD VIDE THIS DOCUMENT THE AGREEMENT OF SALE DATED 20-11-1995 IN FAVOUR OF M/S NDL ESTATES (P) L TD WAS REGISTERED AS SALE-CUM-GPA. THE SALE CONSIDERATION WAS RS. 11 LAKHS. THIS DOCUMENT OF 05-09-2006 WAS NOT REGISTER ED BY SUB- REGISTRAR AND ON APPEAL ON DIRECTIONS OF APPELLATE AUTHORITY THE SAME WAS REGISTERED ON 16-12-2008. IN THIS AGREEMENT AT PAGE-5 CLAUSE-5 IT IS WRITTE N THAT 'IT SHALL NOT BE POSSIBLE FOR VENDOR NO.5 (DSR) TO SECURE THE PRESENCE OF VENDORS 1 TO 4 (OWNERS) DUE TO LONG LAPSE OF TIM E'. SUBSEQUENT DEVELOPMENTS: I : 2009 FOUR REGISTERED SALE DEEDS WERE ENTERED INTO BETWEE N THE ORIGINAL OWNERS THROUGH THEIR GPA HOLDER (APPELLANT ) AND M/S NDL ESTATES (P) LTD. (I) SALE DEED NO.527/2009 DT 25-02-2009 FOR 6000 SQ .YDS OF THE SUBJECT PROPERTY. (II) SALE DEED NO.528/2009 DT 25-02-2009 FOR 540 SQ .YDS OF THE SUBJECT PROPERTY (III) SALE DEED DATED 8-4-2009 FOR 9006 SQ.YDS OF T HE SUBJECT PROPERTY (IV) SALE DEED DATED 27-4-2009 FOR 3260 SQ.YDS OF T HE SUBJECT PROPERTY THE ABOVE 4 DOCUMENTS REFER TO EARLIER DOCUMENTS DA TED 05-11- 1967 07-03-1990 20-11-1995 AND 05-09-2006. IT IS TO BE SPECIFICALLY MENTIONED THAT IN ALL THE 4 DOCUMENTS IT IS WRITTEN THAT VENDOR NO.5 (SRI DSR) IS EXECUTING THIS SALE D EED BY VIRTUE 9 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO OF REGISTERED GENERAL POWER OF ATTORNEY DATED 7-3-1 990 BEARING DOCUMENT NO.708/90. DISPUTES: HOWEVER ONE OF THE OWNERS SRI J. LAKSHMAIAH (IN H IS LETTER DATED 17-06-13 TO ITO (INTELLIGENCE) HYDERABAD) HA D STATED THAT ON 5-9-2009 SRI D.SESHAGIRI RAO HAD SENT A L ETTER MENTIONING ALL THE DETAILS ALONG WITH DD DRAWN ON I NG VYSYA BANK HYDERABAD FOR RS.5 50 000 EACH IN FAVOUR OF A LL THE 4 OWNERS HOWEVER ON 17-9-2009 ALL THE 4 OWNERS RET URNED DDS AND CANCELLED THE GPA ENTERED WITH DSR ON 7-3-1990 AND SENT A LEGAL NOTICE TO DSR AND ALSO ISSUED A PUBLIC NOTI CE. THESE AVERMENTS WERE ALSO CONFIRMED BY SRI K.BHAVANI SHAN KAR RAO (IN HIS LETTER DATED 26-2-14 TO ITO (INTELLIGENCE) GUNTUR). J : DATE 11-09-2009 THE ORIGINAL OWNERS CANCELLED THE GPA GIVEN TO SRI DSR VIDE REGISTERED GPA DOCUMENT NO.705 OF 1990 DATED 07-03- 1990. IT IS MENTIONED IN THIS DOCUMENT THAT THE GPA HOLDER H AS MIS- UTILISED THE POWERS CONFERRED UPON HIM THEREFORE THE GPA DATED 07-03-1990 IS CANCELLED. THIS CANCELLATION DE ED IS REGISTERED. K : DATE: 29-12-2010 AN UN-REGISTERED TRIPARTITE MEMORANDUM OF UNDERSTAN DING WAS ENTERED BETWEEN ORIGINAL OWNERS M/S NDL INFRATECH LTD (FORMERLY KNOWN AS NDL ESTATES (P) LTD) AND SRI DSR . M/S NDL INFRATECH LTD PAID AN AMOUNT OF RS.1.02 CRORES TO T HE 4 OWNERS. THIS DOCUMENT IS UNREGISTERED THE DETAILS OF PAYMENT ARE AS UNDER: S.NO. DD NO. DATE IN FAVOUR AMOUNT (RS.) 1 046719 29-12-2010 K.MADHUSUDAN RAO 9 00 000 2 046720 29-12-2010 K.SRIDHAR 9 00 000 3 046721 29-12-2010 P.RADHIKA 7 50 000 4 046722 29-12-2010 K.BHAVANI SHANKARA ROA 14 50 000 5 046723 29-12-2010 U. JYOTHSNA 6 00 000 6 046724 29-12-2010 K.KRISHNA MOHAN 5 00 000 7 046716 29-12-2010 N.ANNAPURANA DEVI 9 00 000 8 046717 29-12-2010 N.CHITTARANJAN 8 50 000 9 046718 29-12-2010 N.SUDHAKAR CHOUDARY 8 00 000 10 046727 29-12-2010 J.LAKSHMAIAH 6 37 500 11 046725 29-12-2010 J.SARADA DEVI 6 37 500 12 046730 29-12-2010 J.SITA RAMA SWAMY 6 37 500 10 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO 13 046726 29-12-2010 J.RUPCHAND 6 37 500 L. 17/06/2013 FURTHER DEVELOPMENT SRI J.LAKSHMAIAH IN HIS LETTER DATED 17-6-13 AND SH RI K.BHAVANI SHANKAR RAO IN HIS LETTER DATED 26-2-14 HAD STATED THAT AFTER CANCELLATION OF GPA DATED 7-3-1990 BY THEM ON 11-9 -2009 THE PURCHASERS M/S NDL INFRATECH LIMITED REALIZED THE POTENTIAL FOR DISPUTES AND REACHED A SETTLEMENT WITH THE OWNERS A ND THE DSR. ACCORDING TO THIS SETTLEMENT DEED/MOU AN AMOU NT OF RS.1.02 CR. WAS PAID TO THE OWNERS AND EACH OF THEM RECEIVED RS.25 50 000 TOWARDS FULL CONSIDERATION AND ALL THE OWNERS RATIFIED THE ACTION OF DSR AND HIS AGREEMENTS WITH M/S NDL INFRATECH (P) LIMITED. HOWEVER SRI J.LAKSHMAIAH (IN HIS LETTER DATED 17-6 -13 TO ITO (INTELLIGENCE) HYDERABAD) HAD STATED THAT ALL THE 4 DOCUMENTS MENTIONED ABOVE WERE ENTERED BY DSR WITHOUT THEIR K NOWLEDGE AND THEY HAVE NOT RECEIVED ANY SALE CONSIDERATION THAT THEY HAVE NOT SIGNED THIS DOCUMENT. THE SAME WAS CONFIRM ED BY SRI K.BHAVANI SHANKAR RAO IN HIS LETTER DATED 26-2-14 TO ITO (INTELLIGENCE) GUNTUR. 2.1 BEFORE THE AO ASSESSEE SUBMITTED THAT HE IS NO T A REAL OWNER OF THE PROPERTY AND HE IS ONLY A GPA HOLDER AND HAS NOT RECEIVED ANY CONSIDERATION AND THEREFORE THERE CANNOT BE ANY C APITAL GAIN ASSESSABLE IN HIS HANDS. FURTHER HE SUBMITTED THAT SECTION 50C CANNOT BE INVOKED IN THE GIVEN CASE SINCE THE SAID DOCUMENTS WERE ONLY AGREEMENTS-CUM-GPAS AND NOT SALE DEEDS. CONSID ERING ASSESSEES SUBMISSIONS AND VARIOUS DOCUMENTS PLACED BEFORE HIM AO DID NOT ACCEPT THE CONTENTIONS OF THE ASSESSEE A ND COMPLETED THE ASSESSMENT U/S 143(3) RWS 147 OF THE ACT BY OBSERVI NG THAT ASSESSEE VIDE AGPA DT. 05/09/2006 (REGISTERED AS DOCUMENT NO . 3171/08) HAD GIVEN VACANT POSSESSION OF THE SAID LAND TO THE PU RCHASER M/S NDL ESTATES PVT. LTD. AS THE TOTAL CONSIDERATION OF RS . 11 LAKHS WAS RECEIVED BY HIM AS EARLY AS ON 04/03/1995 WHICH WA S REGISTERED SUBSEQUENTLY IN FEBRUARY/APRIL 2009. ACCORDING TO THE AO THE LAND OF 4.16 ACRES WHICH WAS PURCHASED BY THE ASSESSEE O N 29-09- 1980/06-03-1990/07-03-1990 FOR RS. 24 LAKHS WAS S OLD ON 11 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO 05/09/2006 AND WAS REGISTERED BY THE ASSESSEE IN FE BRUARY/APRIL 2009 BY WAY OF 4 SALE DEEDS. FURTHER AO OPINED THA T SUBSEQUENT TO THIS TRANSACTION ASSESSEE HAD FULFILLED HIS OBLIGA TION OF PAYMENT OF BALANCE SALE CONSIDERATION OF RS. 22 LAKHS TO THE 4 CO-OWNERS AS CAN BE SEEN FROM HIS LETTER DATED 05/09/2009 ADDRESSED TO ONE OF THE CO- OWNERS. ACCORDING TO THE AO ASSESSEE IS THE ABSOLU TE OWNER OF THE PROPERTY ATTRACTING TAXABILITY ON THE TRANSFER OF T HE SAID PROPERTY. HE DECLINED TO ENTERTAIN THE SUBSEQUENT EVENTS OF RATI FICATION OF THE DEEDS BETWEEN CO-OWNERS AND THE PURCHASER OF LAND I .E. M/S NDL ESTATES PVT. LTD TREATING IT AS A PROFIT ARRANGEMEN T BETWEEN THE PARTIES WHICH HAS NO LOCUS STANDI IN THE EYES OF LA W. 2.2 FURTHER AO HAD OBTAINED SRO VALUE FROM THE STA MP AUTHORITIES WHICH WAS AT RS. 25 000/- PER SQ.YD. A CCORDINGLY HE INVOKED THE PROVISIONS OF SECTION 50C OF THE ACT AN D BROUGHT TO TAX LONG TERM CAPITAL GAIN IN THE HANDS OF THE ASSESSEE . 3. AGGRIEVED BY THE ORDER OF AO THE ASSESSEE PREFE RRED AN APPEAL BEFORE THE CIT(A). 4. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSE E AND VARIOUS DOCUMENTS PLACED ON RECORD THE CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE BY OBSERVING AS UNDER: 5. I HAVE CAREFULLY GONE THROUGH THE SERIES OF DOCU MENTS SUBMISSIONS OF THE APPELLANT SUBMISSIONS MADE BY 4 OWNERS BEFORE INCOME-TAX AUTHORITIES. AS MENTIONED ABOVE THERE HAVE BEEN SERIES OF UNREG ISTERED / REGISTERED DOCUMENTS OVER A PERIOD OF 60 YEARS TIME . THE DEEDS WERE SUBJECT TO FULFILMENT OF CERTAIN CONDITIONS / PAYMENTS OF CERTAIN AMOUNTS WHICH WERE NEITHER FULFILLED NOR PA ID FULLY. ULTIMATELY THE ORIGINAL OWNERS DENIED THAT THEY HA VE SIGNED ON ANY DOCUMENT EXCEPT THE MEMORANDUM OF UNDERSTANDING DATED 29-12-2010. ULTIMATELY THE 4 OWNERS ENTERED AN MEM ORANDUM OF UNDERSTANDING WITH M/S NDL INFRATECH (P) LIMITED ON 29-12- 2010 AND RECEIVED THE PAYMENT AS MENTIONED AT PARA. 2.K. IT IS ALSO PERTINENT TO MENTION THAT THE PROPERTY WAS SUB JECT TO ENCROACHMENT OVER A PERIOD OF TIME THE LAND OF 8 AC RES HAS 12 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO COME DOWN TO AC. 4.16 CENTS. EVEN AS ON TODAY THER E ARE MULTIPLE LITIGATIONS ON THE SAID PROPERTY. THEREFOR E THE VALUE OF THE LAND CANNOT BE EQUATED WITH FREE HOLD LAND AND SECTION 50C. FURTHER THE 4 OWNERS VIDE CANCELLATION DEED D ATED 11-09- 2009 REVOKED THE GENERAL POWER OF ATTORNEY GIVEN TO SRI DSR VIDE DOCUMENT DATED 07-03-1990. ON THE OTHER HAND THE OWNERS ADMITTED THAT THEY ENTERED MOU WITH M/S NDL INFRATECH (P) LIMITED AND RECEIVED THE PAYMENT. SRI J.LAKSHMA IAH AND SRI K.MADHUSUDHAN RAO ADMITTED LONG TERM CAPITAL GAIN I N THEIR RESPECTIVE INCOME TAX RETURN FOR A.Y.2011-12. SRI K .BHAVANI SHANKAR RAO IN HIS LETTER TO ITO (INTELLIGENCE) GU NTUR DATED 26-02-2014 ADMITTED THAT HE ENTERED MOU WITH M/S ND L INFRATECH (P) LTD AND RECEIVED THE PAYMENT. SMT.N.ANNAPURNADEVI EXPIRED ON 02-05-2014. IN VIEW OF THE DISCUSSIONS MADE I AM OF CONSIDERED OPINION THAT THE APPELLANT HAD NEVER ACQUIRED OWNERSHIP AS HE NEVER FULFILLED THE CONDITIONS MENTIONED IN DOCUMENTS AND ULTIMATELY MONEY WAS PAID TO ORIGINAL OWNERS BY M/S NDL INFRAT ECH (P) LIMITED THE PURCHASER. THEREFORE THE QUESTION OF INVOKING SECTION 50C DOES NOT ARISE. THEREFORE THE GROUNDS RAISED REFERRING TO OWNERSHIP OF LAND ARE TREATED AS ALLOW ED AND THE REST OF GROUNDS HAVE BECOME INFRUCTUOUS. 5. AGGRIEVED BY THE ABOVE ORDER REVENUE IS IN APPE AL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. LD. CIT (A) ERRED ON BOTH LAW AND FACTS OF THE CASE. 2. THE LEARNED CIT (A) ERRED IN DELETING THE ADDITI ON MADE BY THE ASSESSING OFFICER OF RS.52 51 58 140/- TOWARDS INCOME FROM CAPITAL GAINS. 3. THE LD. CIT (A) IGNORED THE VARIOUS FINDINGS GIV EN BY THE ASSESSING OFFICER WHILE MAKING THE ADDITION. 4. THE LEARNED CIT (A) ERRED IN DELETING THE ADDITI ON MADE IN THE HANDS OF THE ASSESSEE HOLDING THAT THE ASSESSE E HAD NEVER ACQUIRED OWNERSHIP NOT CONSIDERING THE FACT THAT A N IRREVOCABLE GPA WAS REGISTERED IN THE NAME OF THE ASSESSEE VIDE DOCUMENT NO: 708/1990 DATED 07/03/1990. 5. LD. CIT (A) ERRED IN DELETING THE ADDITION MADE UNDER THE HEAD LONG TERM CAPITAL GAINS NOT CONSIDERING THE L ETTER OF THE ASSESSEE DATED 05/09/2009 TO SRI J. LAKSHMAIAH ONE OF THE CO- OWNERS OF THE PROPERTY IN QUESTION WHICH CLEARLY S TATES THAT THE ASSESSEE IS IN POSSESSION OF THE PROPERTY IN QUESTI ON FROM 29/09/1980. 13 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO 6. ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIM E OF HEARING. 6. GROUND NOS. 1 & 6 ARE GENERAL IN NATURE AND GRO UND NOS. 2 TO 5 ARE DIRECTED AGAINST THE ACTION OF THE CIT(A) IN DELETING THE ADDITION MADE IN THE HANDS OF THE ASSESSEE ON ACCOUNT OF LON G TERM CAPITAL GAIN. 7. CONSIDERED THE RIVAL SUBMISSIONS AND MATERIAL FA CTS ON RECORD. WE HAVE CONSIDERED VARIOUS AGREEMENTS ENTERED INTO BY THE ASSESSEE WITH THE OWNERS OF LAND FROM THE YEAR 1967 TILL DATE. AFTER CAREFUL READING OF THE ABOVE AGREEMENTS THE FACTS COMING OUT OF THE ABOVE AGREEMENTS ARE THAT FOUR COOWNERS NAMELY S HRI K. MADHUSUDHAN RAO SRI K. BHAVANI SHANKAR RAO SHRI J . LAKSHMAIAH AND SMT. ANNAPURNA DEVI (HEREINAFTER THEY ARE REFER RED TO AS MR. KMR AND OTHERS) WHO ARE HAILING FROM KUCHIPUDI VIL LAGE AMRATHALUR (M) GUNTUR DT. PURCHASED 8 ACRES OF NON-AGRICULTU RAL LAND IN SURVEY NO. 194/1 BEGUMPET REVENUE (V) BALANAGAR (M) R.R . DISTRICT FROM SRI MIRZA ALI MOOSA RAZA VIDE REGISTERED SALE DEED NO. 2568/1967 DT. 05/01/1967 FOR AN AMOUNT OF RS. 28 000/-. MR. K MR AND OTHERS ENTERED INTO AN AGREEMENT OF SALE-CUM-GPA WITH THE ASSESSEE IN TWO SEPARATE AGREEMENTS OF SALE OF 3.3 ACRES AND 4.67 A CRES. AS PER THE FIRST AGREEMENT THEY HANDED OVER THE LAND AND RECE IVED FULL SALE CONSIDERATION. AS PER THE SECOND AGREEMENT DATED 29 /09/1980 FOR THE BALANCE LAND OF 4.67 ACRES THEY HANDED OVER THE PO SSESSION OF THE LAND BY VIRTUE OF GPA DATED 29/09/1980 AND AS PER T HE AGREEMENT OF SALE THEY AGREED TO SELL THE SAID EXTENT OF LAND F OR A TOTAL CONSIDERATION OF RS. 24 LAKHS AND RECEIVED A SUM OF RS. 2 LAKHS WHICH SHOULD BE PAID ON OR BEFORE 30/04/1990 AND TH E BALANCE AMOUNT MAY BE PAID ONLY AFTER DENOTIFICTION OF THE SAID EXTENT OF LAND FROM THE PROPOSED ACQUISITION FOR BUDHAPOORNIMA PRO JECT SPONSORED BY THE STATE GOVT. AND AFTER CHANGE OF PURPOSE IN THE EXEMPTION ORDER VIDE GO MS. NO. 4586 DATED 10/10/1980 IN FAV OUR OF THE KMR 14 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO AND OTHERS. THE SAID BALANCE AMOUNT WAS TO BE PAID WITHIN ONE YEAR FROM SUCH DATE OF DENOTIFICATION. FURTHER AS PER T HE ABOVE AGREEMENT KMR AND OTHERS EXECUTED THE GENERAL POWE R OF ATTORNEY (GPA) IN FAVOUR OF THE ASSESSEE EMPOWERING ASSESSEE TO DO ALL THINGS NECESSARY FOR THE PURPOSE OF SECURING PERMIS SIONS EXEMPTIONS AND ALL NECESSARY CLEARANCES REQUIRED UNDER ANY ENA CTMENT WHATSOEVER RELATING TO THE SAID LAND AND FOR THE PU RPOSE OF GETTING THE SALE DEED OR DEEDS EXECUTED FINALLY AS PROVIDED IN THE GPA. 7.1 IT IS CLEAR FROM THE ABOVE TWO AGREEMENTS THAT TRANSFER OF 3.3 ACES EVEN THOUGH UNDER GPA KMR AND OTHERS HAS RECE IVED FULL CONSIDERATION AND HANDED OVER THE PROPERTY AND CLEA R TITLE HAS ALREADY PASSED ON TO THE ASSESSEE WHEREAS IN THE CA SE OF SECOND AGREEMENT THE LAND TO THE EXTENT OF 4.67 ACRES KM R AND OTHERS HAVE RECEIVED ONLY PART SALE CONSIDERATION OF RS. 2 LAKH S AND HANDED OVER THE LAND WITH GPA AND THERE ARE CERTAIN OBLIGATIONS ON THE PART OF THE ASSESSEE AS PER THE AGREEMENT AS CITED ABOVE. THER E IS NO DOUBT THAT THE POSSESSION OF THE LAND WAS IN THE HANDS OF ASSESSEE UNDER THE FIDUCIARY CAPACITY UNDER VARIOUS CLAUSES OF GPA . SUBSEQUENTLY ON 20/11/1995 A SALE AGREEMENT WAS ENTERED INTO BE TWEEN FOUR CO- OWNERS REPRESENTED BY GPA HOLDER I.E. ASSESSEE AND M/S NDL ESTATES PVT. LTD. FOR SALE OF 4.67 ACRES OF LAND FO R A SALE CONSIDERATION OF RS. 1 27 77 600/- AND A PART OF SA LE CONSIDERATION WAS PAID TO THE EXTENT OF RS. 11 LAKHS. IT IS PERTI NENT TO NOTE THAT THIS AGREEMENT ALSO WAS UNREGISTERED. AS PER THE RECORDS AND AS CLAIMED BY THE ASSESSEE THERE WERE SPATE OF LITIGATIONS W ITH REGARD TO THE ABOVE PROPERTY WITH THIRD PARTIES BETWEEN 1995 TO 2 006. ON 5 TH SEPTEMBER 2006 A REGISTRATION OF SALE-CUM-GPA WAS ENTERED INTO BY THE COOWNERS REPRESENTED BY GPA HOLDER I.E. ASSESSE E IN FAVOUR M/S NDL ESTATES PVT. LTD. FOR A SALE CONSIDERATION OF R S. 11 LAKHS. THIS DOCUMENT WAS INITIALLY NOT REGISTERED BY SUB-REGIST RAR AND ON APPEAL ON DIRECTIONS OF APPELLATE AUTHORITY THE SAME WAS REGISTERED ON 16/12/2008. IN THE ABOVE AGREEMENT IT WAS RECORDED THAT IT IS NOT 15 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO POSSIBLE FOR THE ASSESSEE TO SECURE THE PRESENCE OF CO-OWNERS DUE TO LONG LAPSE OF TIME. IN THE YEAR 2009 FOUR REGISTE RED SALE DEEDS WERE ENTERED INTO BETWEEN 4 CO-OWNERS REPRESENTED BY THE IR GPA HOLDER ASSESSEE AND M/S NDL ESTATES PVT. LTD. AT THE SAME TIME ASSESSEE HAD SENT LETTERS TO THE CO-OWNERS ON 05/09/2009 ALO NG WITH A DD DRAWN ON ING VYSYA BANK HYDERABAD FOR RS. 5 50 000 /- EACH IN FAVOUR OF THE ABOVE COOWNERS LATER ON COOWNERS RE TURNED THE DDS AND CANCELLED THE GPA ENTERED INTO WITH THE ASSESSE E AND ALSO SENT A LEGAL NOTICE. THESE AVERMENTS WERE ALSO CONFIRMED B Y SHRI J. LAKSHMAIAH AND SRI K. BHAVANI SHANKAR RAO. 7.2 IT IS CLEAR FROM THE ABOVE EVENTS THAT ASSESSEE WAS IN POSSESSION OF THE LAND UNDER GPA AND HE HAS NOT PAI D THE SALE CONSIDERATION WHICH WAS AGREED BETWEEN COOWNERS AND THE ASSESSEE WAY BACK IN 1990. IT IS CLEAR FROM THE FACT THAT AS SESSEE HAS TO CARRY ON CERTAIN OBLIGATIONS AGREED WITH CO-OWNERS IN BET WEEN THERE WERE CIVIL LITIGATIONS AND EVEN ASSESSEE HAS NOT PAID TH E AGREED AMOUNTS TO THE COOWNERS. THE ASSESSEE TRIED TO PAY THE BALA NCE SALE CONSIDERATION ONLY IN THE YEAR 2009 AFTER A PERIOD OF 19 YEARS WHICH WAS RETURNED BY THE COOWNERS AND ACCORDINGLY GPA AL SO WAS CANCELLED. IT SHOWS THAT ASSESSEE HAS NEVER ACQUIRE D OWNERSHIP OF THE PROPERTY AS PER THE SECTION 53A OF THE TRANSFER OF PROPERTIES ACT. AS PER SECTION 53A WHERE ANY PROPERTY BY WRITING SIGNED BY HIM OR ON HIS BEHALF FROM WHICH THE TERMS NECESSARY TO CO NSTITUTE THE TRANSFER CAN BE ASCERTAINED WITH REASONABLE CERTA INTY AND TRANSFEREE HAS PART PERFORMANCE OF THE CONTRACT TAKEN POSSESSI ON OF THE PROPERTY OR THE TRANSFEREE IS ALREADY IN POSSESSION AND CONT INUES IN POSSESSION IN PART PERFORMANCE OF THE CONTRACT AND HAS DONE SOME ACT IN FURTHERANCE OF THE CONTRACT OR HAS PERFORMED OR IS WILLING TO PERFORM HIS PART OF THE CONTRACT NOTWITHSTANDING W HERE THERE IS AN INSTRUMENT OF TRANSFER THAT THE TRANSFER HAS NOT B EEN COMPLETED IN THE MANNER PRESCRIBED THEREFOR BY THE LAW. IN THE GIVE N CASE ASSESSEE HAS TAKEN THE POSSESSION OF THE PROPERTY BUT FAIL ED TO PAY THE SALE 16 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO CONSIDERATION AND HAS ALSO NOT PERFORMED THE OBLIGA TIONS AS PER THE GPA AND IT CLEARLY SHOWS THAT THIS DOES NOT CONSTIT UTE TRANSFER WITH ASCERTAINED CERTAINTY THEREFORE THIS TRANSACTION DOES NOT GIVE PROPER RIGHT TO THE ASSESSEE TO CLAIM THE OWNERSHIP OF THE PROPERTY. IT IS PERTINENT TO NOTE THAT COOWNERS HAVE ALSO CANCELLED THE POWER OF ATTORNEY WHICH CLEARLY DEMONSTRATES THAT ASSESSEE HAS NO LEGAL OWNERSHIP ON THE PROPERTY. OWNERSHIP CAN BE SAID TO BE ACQUIRED WHEN OWNERSHIP ALONG WITH POSSESSION PASSED ON. IN THE GIVEN CASE ASSESSEE NO DOUBT HAS POSSESSION OF THE PROPERTY ONLY IN THE FIDUCIARY CAPACITY AND NOT AS OWNER OF THE PROPERTY MOREOVER ASSESSEE HELD THE PROPERTY WITHOUT ANY TITLE OF THE PROPERTY. ALL ALONG THERE ARE SALE AGREEMENTS ENTERED INTO BY THE ASSES SEE WITH M/S NDL ESTATES PVT. LTD AS A REPRESENTATIVE OF THE CO-OWNE RS. AS PER THE ABOVE DISCUSSION IN OUR CONSIDERED VIEW ASSESSEE HAS NEVER GOT OWNERSHIP TITLE ON THE LAND. 7.3 SINCE ASSESSEE IS NOT A REAL OWNER OF THE SAID PROPERTY AND TRANSFERRED THE PROPERTY ON THE REPRESENTATIVE BASI S AND TRANSFER TOOK PLACE BETWEEN COOWNERS AND M/S NDL ESTATES PVT. LTD WE CAN COME TO A CONCLUSION THAT THERE IS NO TRANSFER MADE BY T HE ASSESSEE. WE HAVE NOTICED THAT AO HAS NOT CONSIDERED THE SUBSEQU ENT DEVELOPMENTS. FURTHER SECTION 50C CANNOT BE APPLIE D IN THE GIVEN CASE. ACCORDINGLY WE ARE IN AGREEMENT WITH THE FIN DINGS OF THE LD. CIT(A) AND UPHOLD THE ORDER OF LD. CIT(A). HENCE W E DISMISS THE GROUNDS RAISED BY THE REVENUE. 8. AS WE HAVE DISMISSED THE APPEAL OF THE REVENUE U PHOLDING THE ORDER OF THE LD. CIT(A) THE CO FILED BY THE ASSESS EE BECOMES INFRUCTUOUS AND THEREFORE THE CO IS DISMISSED AS INFRUCTUOUS. 17 ITA NO. 760/H/16 & C.O. NO. 50/H/16 D. SESHAGIRI RAO 9. IN THE RESULT APPEAL OF THE REVENUE AS WELL AS C.O. OF THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 30 TH NOVEMBER 2017. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RA HMAN) JUDICIAL MEMBER A CCOUNTANT MEMBER HYDERABAD DATED: 30 TH NOVEMBER 2017. KV COPY TO:- 1) JCIT (OSD) O/O DCIT CIRCLE 3(1) ROOM NO. 714 7 TH FLOOR SIGNATURE TOWERS OPP. BOTANICAL GARDEN KONDAP UR HYD. 2) SRI D. SESHA GIRI RAO CHAIRMAN M/S SEC INDUSTR IES LTD. 6/25 OPP. IDPL PROJECT KUKATPALLY HYD. 3) CIT(A) 3 HYDERABAD 4 PR. CIT 3 HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE I.T.A.T. HYDE RABAD. 6) GUARD FILE