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2020 (10) TMI 269 - AT - Income TaxDifference between form 26AS and the amount shown in the profit and loss account - leakage of revenue during the period of joint development - HELD THAT:- It is the case of the assessee that an agreement was entered with an intention of developing the above property jointly as business venture and the income from the said activity was offered to tax by the following the percentage of completion method. AO was of the view that the assessee cannot adopt percentage of completion method as it is not in the business of developing the property but only was the land owner of the property. Difference amount contained in form 26AS and shown in the profit and loss account was brought to tax. This is an issue which requires to be decided having regard to the terms of the joint development agreement and the intention of the parties to the agreement. Intention of the parties can be gauged from the entries made in the books of account. Entries in the books of account clearly goes to show that the assessee is only a partner in the development of scheduled property of the agreement. No addition can be made based on a mere difference between form 26AS and the amount shown in the profit and loss account and in the absence of any reconciliation and corroborative evidence. It is not the case of the Revenue that there is leakage of revenue during the period of joint development, it is a case of tax neutral. No addition is warranted and the Assessing Officer is directed to delete the addition. - Decided in favour of assessee.
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