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Commissioner Of Income-Tax, Madras vs Mtt. Ar. S. Ar. Arunachalam Chettiar on 22 December, 1952

26. As regards grounds No. 2, 3 & 4 are concerned, in the remand report, the AO has clearly mentioned that this is a case of inheritance of property and there change in the ownership and therefore, this fact cannot be denied and therefore, the submissions of the assessee in para 5.2 of the CIT(A)'s order are found to be convincing and therefore, the amount paid by the assessee for the purpose of clearing of the mortgage is to be regarded as cost of acquisition u/s 48 read with section 55(2) in view of the decision of 31 ITA Nos. 250,248 & 249(Asr)2010 Hon'ble Supreme Court in the case of CIT vs. Arunachalam 227 ITR 222 (surpa). The AO is directed to allow relief to the assessee accordingly and re-compute income accordingly. As held in the case of M/s. Amritsar Rice Mills Ltd and also hereinabove, there cannot be a double taxation and therefore, the capital gains declared by the assessee as per sale deed is directed to be accepted. Accordingly, grounds No.2,3 & 4 of the assessee are allowed.
Supreme Court of India Cites 18 - Cited by 105 - Full Document

Indian Plywood Mfg. Co. Ltd. vs Deputy Commissioner Of Income-Tax, ... on 19 May, 2006

There is absolutely no mention in the assessment order that sale proceeds of the stock and realization of other current assets had been utilized elsewhere. Thus, the submissions of the assessee with regard to the source of deposits in the bank account remain unrebutted. Since the addition has been made in the reassessment proceedings; the onus was squarely on the revenue to establish that there was escape of income. Reliance in this regard is placed on the judgment of 21 ITA Nos. 250,248 & 249(Asr)2010 Hon'ble Allahabad High Court in the case of Tin Mfg. Co. of India vs. CIT (1996) 222 ITR 323. The AO could not have made the addition merely on the ground that the no sale bill etc. was produced in support of the contention and deposits were made out of sale proceeds of stock and realization of current assets. Without prejudice and independent of the above view, it is submitted that existence of stock and current assets as on 31.3.1994 stand established. It is not the claim of the department that stock position shown in the books of account as on 31.3.1994 was bogus. If the view that the stock was sold during the financial year relevant to Asstt. Year in appeal is not accepted, the only presumption remains is that it was sold in the earlier assessment years still to that extent cash was available with the assessee. The source of the deposits in the bank account is still liable to be accepted by allowing the benefit of telescoping the investment in the bank deposits against the cash available of earlier assessment years.
Income Tax Appellate Tribunal - Mumbai Cites 15 - Cited by 3 - Full Document
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