Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 1120 - AT - Income TaxDiversion of Revenue at Source - Reducing the business income being the share of profit of one of the members of AOP of the assessee - Held that:- Assessee has computed the profit of the AOP firm purely on commercial principles after deducting the cost of land and construction expenses from the amount of sales / revenue and accordingly net profit was shown under the head “Income from business” upon which deduction u/s 80IB(10) has been claimed. In our considered view, the computation of profit and determination of taxable income is one aspect which is different from apportionment of profit / income between the AOP members. It appears that Assessing Officer had mixed up these two independent actions which led to whole confusion and avoidable litigation. Thus, we find that the Tribunal had correctly appreciated the whole issue in the preceding years and the same has also got affirmation from the Hon’ble High Court. Thus, viewed from any angle, the action of the lower authorities in re-computing the income was not justified and, therefore, the same is hereby reversed. Interest on FDR received on account of the funds to be used by the proposed society - Held that:- here was no clarity on facts with regard to transferring of impugned Security Deposit amount to the Society by the assessee in entirety. In fact, from the arguments of the Ld. DR it transpires that this is the only objection left to be addressed as per final stand of the Revenue. Thus, in all fairness to both the parties, we find it appropriate to send this issue back to the Assessing Officer for verification of these facts. The assessee shall bring on record all requisite evidences to demonstrate that the impugned amounts received by way of deposits from the customers along with the amount of interest credited by the bank thereon have been transferred to the concerned Society. In case, any amount has been appropriated by the assessee in violation of the agreement or in violation of the regulations of MOFA, then corresponding amount of interest thereon can be brought to tax in the hands of the assessee. Thus, with these directions, this issue is sent back to the file of the Assessing Officer. The Assessing Officer shall give adequate opportunity of hearing to the assessee before deciding this ground afresh. Deduction u/s 80IB(10) - Held that:- CIT vs Sarkar Builders & Ors (2015 (5) TMI 555 - SUPREME COURT ) wherein it has been inter alia held that where housing project was sanctioned before the amendment but has been completed after April 1, 2005, when the amended provisions came into operation, the assessee would be entitled to deduction u/s 80IB (10) and conditions mentioned in clause (d) would not apply. It has been stated that assessee’s project was approved prior to the said date which has not been disputed by the Revenue. - Decided against revenue
|