1. MOD Creations Pvt. Ltd. Vs. ITO, ITA No. 1158/2007 (Dated: August 29, 2011), Delhi High Court
Section 68 of the I.T. Act only sets up a presumption against the assessee whenever unexplained credits are found in the books of accounts of the assessee In refuting the presumption raised, the initial burden is on the assessee. This burden, which is placed on the assessee, shifts as soon as the assessee establishes the authenticity of transactions as executed between the assessee and its creditors. It is no part of the assessee's burden to prove either the genuineness of the transactions executed between the creditors and the sub-creditors nor is it the burden of the assessee to prove the credit worthiness of the sub-creditors;
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2. CIT, Bangalore Vs. Dr. T K Dayalu, ITA No. 3209 of 2005 (Dated: June 20, 2011), KARNATAKA HIGH COURT
Issue: Whether, in respect of development agreement, the relevant date for attracting capital gain is the date on which possession is handed over to the developer or the date of completion of the project.
Held:
that the assessee had received capital gain in the year 1997-98 and having regard to the finding of fact that the possession of the property has been handed over on 30.5.1996, the appropriate A.Y in which the capital gain is to be taxed is 1997-98. There is no merit in the contention of the assessee Counsel that since the entire project has been completed in the year 2003-04, the tax on capital gain has to be made in that year. It is now well settled that the date on which possession was handed over to the developer is relevant and in the present case, it is no disputed that assessee has already received a sum of Rs.45 lakhs in addition to the structures which would enable to put up construction.The capital gain is to be taxed in the year 1997-98 and not in the year 2003-04.
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