Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1935 - AT - Income TaxAddition as income of assessee representing consideration said to have been received by the assessee under development agreement - Development right agreement with Bengal Shelter Housing Development Ltd - whether agreement does not fall u/s. 53A of Transfer of Property Act r.w.s 2(47)(v) of the IT Act 1961 in the absence of registration of JDA having been executed after amendment came into force? - HELD THAT:- As decided in the case of Balmir Singh Maini [2017 (10) TMI 323 - SUPREME COURT] when there is no income on a transaction which never materialized is at best a hypothetical income which cannot be brought to tax. Therefore, respectably following the decisions above referred to and discussed in the aforementioned paragraphs, the addition made by the AO as confirmed by the CIT-A is deleted. Ground no’s 1 and 2 raised by the assessee are allowed. Addition made u/s 40A(3) - AO found that assessee paid registration fee in cash above ₹ 20,000/- - HELD THAT:- The assessee explained the said payments made for registration of land and flats and such cost includes stamp duty and registration cost. The assessee also filed evidences in support of its contentions and submitted the said payments does not attract the provision Sec. 40A(3) - But it is noted from the record that the AO disallowed such amount by observing the assessee did not furnish any valid or tenable explanation - CIT(A) held the payment has to be directly paid to the government’s account and rejected the contention of assessee and confirmed the addition made by the AO. Before us the Ld. AR pointed to page No.48 of the paper book and referring to the transactions at Sl. No. 12 and submitted that the major portion of said addition was made towards stamp duty cost and only minor portion is belonging to other expenditures - AR further referred to page No.s 58 & 59 of the paper book to show the said amount has reflected at Sl. No.12 at page No.48 of the paper book was being paid towards stamp duty under TR Form No.7 which is a challen for depositing of money in the account of Govt. of West Bengal. Likewise, it is seen from the pages 48 to 91 of the paper book which supports the contentions of the Ld AR. - DR did not controvert the same - assessee carried on transactions with two parties showing the reimbursements of expenses in connection with registration of flats / properties at Beharampur. Considering the submissions of Ld AR, facts and circumstances of the case and evidence available on record from pages 48 to 91 of the paper book we find force in the contentions of Ld AR, therefore, the addition made by the AO has confirmed by CIT(A) is deleted. Thus, ground No. 3 raised by the assessee is allowed. Addition being paid to Beharmpur Municipalities on account of business proficiency - HELD THAT:- The said payment was authenticated by the Chairman Behrampur Municipality by affixing revenue stamp. But however, no submissions were made before us as well as before authorities below in terms of Rule 6DD of the Income Tax Rule 1962 and in the absence of such evidence covering the exception provided under Rule 6DD of the IT Rules, we find no infirmity in the order of CIT(A) and it justified. Thus, ground No.4 raised by the assessee is dismissed.
|