Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1727 - AT - Income TaxTaxability of compensation received on retirement from firm - CIT-A not accepting the fact that the amount over the tangible and intangible assets and right for profit of the firm and assessee was compensated with a sum over and above its capital contribution to the firm - HELD THAT:- Assessee in this case was a partner in the partnership firm. He received compensation from the partnership firm upon retirement from the firm over and above the amount existing to the credit of his capital account. This was brought to tax by the assessing officer. It is noted that the partnership firm was continuing in existence. It was only that assessee retired from the partnership firm. There is no distribution of assets. In the circumstances the compensation received by the assessee has to be held to be capital receipt not chargeable to tax. This is supported by the Honourable Apex Court decision in the case of CIT Vs. V.R. Ringmallu Rahukumar (1997 (1) TMI 74 - SUPREME COURT). Further to the same effect is order of the honourable Hon'ble Jurisdictional High Court in the case of Riaz A. Saikh (2013 (12) TMI 248 - BOMBAY HIGH COURT). - Decided against revenue Deemed rental income from unsold flats - AO has added notional rental income for the unsold flats in the hands of the assessee - HELD THAT:- Upon careful consideration we note that the amendment in the Act bringing into the ambit of taxation the annual value of unsold flats in the hands of the real estate developer has been brought into the statue books by amendment w.e.f. 1.4.2018. The same has been held to be prospective. Hence, on the touchstone of this amendment the additions made in the hands of the assessee for the present assessment year is not sustainable. As regards decision of Hon'ble Delhi High Court in the case of Ansal Housing & Finance and Leasing Co. Ltd. (2012 (11) TMI 323 - DELHI HIGH COURT) relied upon by learned CIT(A), we note that there is a decision of Hon'ble Gujarat High Court in the case of Neha Builders Pvt. Ltd. (2006 (8) TMI 105 - GUJARAT HIGH COURT), in which identical issue has been decided in favour of the assessee. Hence the ITAT Mumbai in the case of Runwal Builders P. Ltd. (2018 (2) TMI 1707 - ITAT MUMBAI) by referring to Vegetable Products decision of Hon'ble Apex Court (1973 (1) TMI 1 - SUPREME COURT) has decided the issue in favour of the assessee. Hence in this view of the matter also the issue is to be decided in favour of the assessee.
|