TMI Blog2011 (8) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... ration are capital assets. 3. Briefly stated, the facts of the case are that the assessee is a private limited company engaged in the business of real estate and construction. During the course of assessment proceedings, the Assessing Officer required the assessee to furnish details of sales made with supporting evidence. The Assessing Officer, from perusal of the details of sales made, observed that out of total sales made, the assessee has shown following sales at different sites:- 1. Sale of offices at KAN Chambers Rs.3,25,07,000/- 2. Sale of flats at, woodland apartments Rs.1,04,25,000/- 3. Sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dic revision. After considering the above submissions of the assessee, the Assessing Officer observed that no doubt the assessee is a builder and construction is its business and industrial activity and the assets sold after construction are its stock in trade. However, this cannot be said in respect of the plots sold by the assessee. The Assessing Officer, therefore, observed that the assessee had made sale of plots amounting to ₹ 79,84,200 which did not represent its stock-in-trade but in fact these were the capital assets. He, therefore, invoked provisions of section 50C of the Act. The Assessing Officer observed that the total value of plots sold for the purposes of stamp duty is ₹ 58,37,594. Hence the difference between the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction activities. In support thereof the assessee vide reply dated 05.12.2008 filed before the AO a copy of the main objects for which the company is incorporated which formed part of the Memorandum of association of the company. Buying and selling land is clearly listed as one of the main objects apart from construction activities. Further a perusal of the balance sheet will show that the land has been shown as stock in trade. The provisions of section 50C are undisputably applicable only for the purposes of section 48 while computation of capital gains. In the instant case the assessee purchased a large plot of land and after leveling etc sold it to various unrelated parties after plots. This constituted an absolutely bonafi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no application where the transfer of an immovable property is on account of sale of stock-in-trade income of which is computed under the head D i.e. income from business, which is the case here. The addition is, therefore, deleted. 7. We have heard the rival submissions and have also perused the materials available on record. We are in agreement with the above observations of the ld. CIT(A) that section 50C of the Act would have no application where the transfer of an immovable property is on account of sale of stock-in-trade income of which is computed under the head income from business. There is no material on record to controvert this contention of the assessee that the plots of land sold were held by the assessee-company as stoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of ₹ 2,01,060 being 50% of the bill for diesel entered in the account on 31.3.2006. 10. On appeal, the ld. CIT(A) reduced the addition to ₹ 1 lakh observing as under:- 5.1 There are 2 aspects to this issue: one is non-maintenance of any log book/stock register which could give a fair idea about the day to day consumption of the diesel used for running the DG sets. The 2 nd aspect is a bill of ₹ 4,02,120/- for purchase of 12000 litres of diesel on the last day of the year, ie. on 31/03/2006. In this regard, it has been explained that this bill is actually a compendium of many challans of diesel supply from 21 st March to 31 st March and for 31 st March, the diesel supply was only 1200 litres. Admitte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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