sandj (ed) 03 March 2016

Fraudulent transfer of property

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.....

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1 Replies

ROHIT SHARMA (Legal Advisor ) 03 March 2016

1. You say that the P.O.A holder to whom you had given power to sell your land within three years but then as you mention that a party had obtained a stay on the sale made by the P.O.A. and while the stay was in vouge the P.O.A. sold the property to his wife despite the fact that there was a stay on the earlier sale deed made by the P.O.A. to some another person.

2. You then came to know about this fact of the P.O.A. selling the property to his wife when the I.T. notice reached you mentining that you hae sold the land and thereafter you filed civil suit against the P.O.A. and his wife.

3. Now you say the P.O.A. holder is dead while the suit against him and his wife is in proceedings.

4. Then who is that person who is bringining such witnessess that the money was paid by the P.O.A. to you when there is no receipt to corrobrate this fact.

5. Hire an I.T. practiner advocate. He can represent you before the I.T. and sustain that you have never received any money from the P.O.A. after he had sold your land to your wife or either to the previous party who has obatined a stay as not to sell the property in context.

6. Do not give in. The I.T. will have to sustain that you had receivved the money of the sale proceeded by the P.O.A. The witnesses being interested parties their deposition will not be deemed as to be unbiased.

7. If aggrivved by the decision of the I.T. assesment Officer, you can file appeal before the I.Tax tribunal.