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2020 (9) TMI 204 - HC - Income TaxIncome from other sources - accrual of income - ITAT held that sum received by the assessee pursuant to a Development Agreement had not accrued as income and was, there fore, not taxable till the Joint Development Agreement took off and sale proceeds were received by the developer? - assessee continued to show the same as a liability - HELD THAT:- There is no finding rendered by the Assessing Officer that the sum of ₹ 9 Crores does not fall under the heads A to E to be brought under head 'F' which deals with 'Income from other sources'. Therefore, the finding of the Assessing Officer is perverse. What weighed in the mind of the Assessing Officer to hold that the amount of ₹ 9 Crores lies in the hands of the assessee was a windfall gain is by referring to an event which took place during the assessment year 2015-16. Obviously, this could not have been done by the Assessing Officer because the assessment which was the subject matter of consideration was of the year 2007-08. The Joint Development Agreement , Power of Attorney, the mortgage were all in force at the relevant time. In fact, even on the date when the Assessing Officer completed the assessment under Section 147 of the Act by order dated 25.03.2015, the Joint Development Agreement was not rescinded and the Power of Attorney was not cancelled. Therefore, on facts, the Assessing Officer could not have held that this is on account of a windfall gain to be brought to tax under the head 'income from other sources'. Thus we hold that the order passed by the Tribunal does not call for any interference and consequently, the Substantial Question of law is required to be answered against the revenue.
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