It was held that admittedly no registered sale deed was executed in the financial year 2011-12, when the sale took place from the assessee-firm to the partner. No transfer of the immovable property could, therefore, be said to have taken place in the financial year 2011-12, when the assessee claimed to have transferred the property to him, but did not execute any registered sale deed. It was only in the year under consideration when the assessee transferred the property by means of a registered sale deed to A and M that the transfer took place in the hands of the assessee. It further held that the fact that the partner included the amount of Rs. 28.35 lakhs in his total income and paid taxes thereon was not germane to the issue. Simply because a wrong person had been assessed that would not deter the Department from assessing the right person. However, double taxation of the same amount in two hands could not be permitted. The partner who had included Rs. 28.35 lakhs in his return for the AY under consideration and paid taxes thereon, was free to take remedial action for exclusion of the amount from his total income as per law. Referred CIT v. Balbir Singh Maini (2017) 398 ITR 531(SC), ITO v. Ch. Atchaiah (1996) 218 ITR 239 (SC) (AY. 2015-16)
Prathamesh Developers v. ITO (2022) 96 ITR 75 (SN) (Pune) (Trib.)
S. 4 : Charge of income-tax-Firm-Partner-Double taxation-Wrong person assessed-Sale to partner without registration in earlier years-Registration deed in latter years-taxable in the year of registration-Partner declaring the income is his hands and paying taxes-Department entitled to tax income in hands of correct person-Partner at liberty to take remedial action for exclusion of amount from his total income. [S. 2(24), 145, Registration Act, 1908, S. 17(1A) 49]