Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 918 - AT - Income TaxAmount received on account of ‘boundary dispute land’ to be included in sale consideration of land for computation of tax purpose - Consideration amount received is Rs.11,86,83,483/- and the balance amount of Rs.4,13,16,517/- is the deposit received relating to another transaction of land i.e. "boundary dispute land" – Held that:- Contention of the assessee cannot be ignored particularly when the assessee categorically stated that it was following the procedure of accounting profit on sale of land in the year in which actual conveyance made but only at the instance of department, the assessee recognized the transaction of sale of land relating to the land situated in Survey No.41 of village Oshiwara and paid the taxes accordingly to buy peace and to avoid litigation as agreed to by the department. Deposit received for the "boundary dispute land" cannot be bought to tax in the year under consideration as the consent terms and conditions itself were approved by the Hon'ble Apex Court vide its order dated 23.10.2008. Therefore, any deposit received by the assessee relating to the said "boundary dispute land", cannot be assessed to tax in the assessment year under consideration i.e. in the assessment year 2007-08. The assessee has given break up of the amount of Rs.11,86,83,483/- arrived at for the NDZ land and we observe that the AO doubted the said calculation merely on suspicion and ignoring the fact on record placed by the assessee before the authorities below merely to bring the said amount of Rs.4,13,16,517/- to tax in the assessment year under consideration though the said amount has been shown by the assessee in its books of account as deposit. The assessee has rightly contended that the said deposit of Rs.4,13,16,517/- cannot be considered as payment for the purchase price of the land as the land was to be demarcated and rates were to be determined as per agreed consent terms - Addition of Rs.4,13,16,517/- received by assessee from SDC, as sale consideration in the assessment year under consideration is not justified – Decided in favor of Assessee. Requirement of revised return, when the claim already made in the original return has not been allowed by the AO – Held that:- AO could not refuse to consider the correct facts when the claim of the assessee is already on record and assessee claimed wrong amount by making incorrect bifurcation. AO is bound to consider the claim of the assessee correctly as per law and on the basis of documents produced before him in respect of a claim made in the return. It is not a new claim which was made by the assessee. Hence, the reliance placed on the decision of Hon'ble Apex Court in the case of Goetze India Ltd [2006 (3) TMI 75 - SUPREME Court] by AO and not considering correct claim was not justified on the ground that the said claim could be made only by way of revised return because it was not a new claim. That the AO has to consider the correct amount to be allowed as deduction while making the assessment on the basis of evidence as may be furnished before him. Hence, in view of above facts, assessee was not required to file revised return – Decided in favor of Assessee.
|