Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 1791 - AT - Income TaxAddition on account of sale of land, by way of Development Agreement - applicability of provisions of Section 2(47) relating to capital asset - HELD THAT:- We find that the CIT(A) has correctly applied the law in the facts of the case. As per the terms of the development agreement, there is no transfer of possession of land as noted by the CIT(A). Secondly, the land was held as stock and trade and therefore provisions of Section 2(47) relating to capital asset would not apply at all. It is seen from the order of the CIT(A) that as per the development agreement, the assessee was required to collect price of land from the developer from time-to-time when the construction is completed. The CIT(A) has also observed that assessee has recorded income as per accounting standard concerning real estate development. We do not see any infirmity in the process of reasoning arrived at by the CIT(A) and consequently, endorse it in entirety without repeating the same. CIT(A) has erred in law and on facts in deleting the disallowance of consultancy fees by observing that the assessee has complied with the TDS provisions. Disallowance of consultancy charges paid by the assessee - HELD THAT:- We are unable to see any merit in the appeal of the Revenue. The CIT(A) has noted that assessee has provided copy of bills for consultancy charges paid to the Consultant S. S. Baid. The assessee has deducted TDS thereon when the payments have been made through banking channel. The CIT(A) has also noted the submissions of the assessee towards nature of services. The CIT(A) in our view has taken a holistic view of the matter and accepted the claim of the assessee as bonafide. We do not see any reason to depart from the view taken by the CIT(A) - Decided against revenue.
|