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2011 (1) TMI 132 - AT - Income TaxDeduction u/s 80-IA - sale of plots - It was submitted by the assessee before the Assessing Officer that sale deeds were effected only to facilitate the buyer companies to go ahead with their business plans, obtain credit and other term loan facilities etc. - The assessee had also mentioned that the company is still obliged to complete the required infrastructure even though plot was registered to buyers - It was therefore pleaded before the Assessing Officer, that there was no sale revenue on the sale of plots during the year - Held that: the Assessing Officer has not given any logical or valid reasons for rejecting the books of account of the assessee. He considered the matter with a suspicion as to the intention of the assessee in not recognising the revenue in respect of the sale of two plots sold during the year observing that the assessee apparently has done so to get away with deduction under section 80-IA of the Act in the succeeding assessment year, as it fulfilled the conditions for such a deduction in that year only. The sale deeds executed by the assessee would not give rise to any income assessable to tax during the assessment year under consideration, since such income was charged with several obligations which the assessee was to discharge before the delivery of plots to the buyers in terms of the sale deeds itself. - there was no need to recognize the revenue from out of the sale of plots during the year under consideration. - Decided in favor of assessee.
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