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2021 (10) TMI 1428 - AT - Income TaxCorrect head of income - LTCG - Treating the capital asset as stock in trade - assessee is a real estate company and no addition in WIP was made during the yea - DR submitted that the Assessing Officer has rightly worked out the business profit on this transaction treating the same as stock in trade - CIT(A) deleted the addition - HELD THAT:- As continuous stand of the revenue was these are work in progress treated to be as capital asset and not as stock-in- trade. The transfer of the hotel on sale cannot be termed as short term capital gain or even business income and thus, the assessee has rightly computed the same as long term capital gain on sale which was reflected in profit and loss account and was subsequently also done. Thus, the deletion of the addition by the CIT(A) was right and there is no need to interfere with the findings of the CIT(A). Hence, Ground No. 1 of Revenue’s appeal is dismissed. Accrual of income - addition of interest amount in the income of the assessee as share of the disputed parties in the interest will arise only - CIT(A) deleted the addition - HELD THAT:- The interest income on fixed deposit in respect of arbitration proceeding and the same cannot be taxable during the year under consideration as the year of taxability of the same was contingent upon the final decision of the arbitrary Tribunal. During the course of hearing, the Ld. AR submitted that in subsequent year the interest was offered to tax by the assessee. Therefore, the CIT(A) has rightly deleted the said addition and there is no need to interfere with the findings of the CIT(A). Hence, Ground No. 2 of the Revenue’s appeal is dismissed.
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