Fraudulent transfer of property

Others 325 views 2 replies

Sand j

25 Points Joined March 2016

Dear all, i need few suggestion to you.

1) i have a land, i gave POA on 16-06-2004 to a person for sale that land for three years. after sometime he told me that a party got stay on that land so we can not sale land now.

2) on 15-01-2016 i got a notice from income tax that i have sold that land on 2008. then i collected documents. i found that that poa holder sold that land to his wife although that time also stay was there on the land. POA holder says that he got cash from buyer and gave that cash to me. no receipt is available.

3) we filed a FIR against POA holder and his wife.

4) he presented deed for registration on 13-06-2007 that time court stay was there on the land. department keep document pending for 8 months and registered deed on 8-2-2008 but that time he was not POA holder. POA was expired on 16-06-2007.

5) now he presented two witnesses to ITO but they are his relatives one is father in law and second one is brother in law. both of them gave affidavits that he paid cash to me.

6) now ITO is going to pass order against me.

I want to know that :

1- can ITO trust on interested witnesses.

2- can ITO treat a fraud as transaction as per law.

3- can you pls send me any judgements which can help me.

4- pls suggest what should i do now.

i will be very grateful, pls help.....

Replies (2)

Keval

Consultant

120 Points Joined April 2009

Hi,

1. ITO can consider the affidavit but generally affidavit are not considered as substantive evidence for concluding the case.

2. ITO cannot treat transaction as fraud as it is governed by different act and different provision wherein POA holder has sold the property after the POA powers are revoked/expired.

3. & 4 As per my view you should first prove the transaction of sale as null and void (since you have mentioned that POA powers were revoked by the time sale deed was registered) and then you can avoid Capital gain tax liability on the basis of Commissioner Of Income-Tax vs Vithalbhai P. Patel on 16 April, 1998

Sand j

25 Points Joined March 2016

Dear Keval sir, thanks for your reply. pls find pointwise reply.

regarding point number 1 ITO doesn't have any other evidance except that affidavit of his relatives. reg poing number two ITO says that POA holder presented deed for registration before expired of POA (although that time court stay was there on that land) and ITO saying that he will trust on the statement of POA holder that he paid you money. i have given FIR copy also to ITO but still his views r same. reg point number 3&4 investgation of police is going on but ITO is going to finalize case in next week. pls suggest FIR itself is not complete document to prove the transaction of sale as null and void. other facts of the case are presented in FIR and given to ITO as well. pls suggest.....

and also pls suggest section 52 of TP act and section 2(47) of income tax act can run simultaneously.

Regards