9911796707
TMI Blog2014 (12) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 84,28,215/- A notice under Section 147 of the Income Tax Act was issued to the assessee on 14 March 2014. The notice records that the assessee which was the owner of certain lands had entered into development agreements with M/S Parsvnath Developers Limited in the financial year 2004-05 and 2006-07 for three projects. The agreements, along similar lines, inter alia, provided that for the due performance of its obligation the developer would pay to the assessee an amount of Rs. 1 crore as a refundable/ adjustable security deposit. The agreement contemplated a distribution of the sale proceeds in a stipulated proportion. A supplementary agreement was entered into on 28 September 2006 in respect of one project whereas for the other pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration. Receipt amounting to Rs. 2.25 Crore has not been shown as taxable income in the return filed AY 2008-09. The Assessing Officer found that during the course assessment which was completed under Section 143(3) a total loss of Rs. 84,28,215/- was shown. During the assessment proceeding the issue of non-refundable security deposits and sale proceeds by way of the supplementary agreements had not been fully and truly disclosed by the assessee. The assessment in the present case is sought to be re-opened beyond a period of 4 years of the relevant assessment year. The proviso to Section 147 of the Income Tax Act, 1961 stipulates that when an assessment under sub-section 3 of Section 143 has been made no action can be taken after t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... close the details of certain amounts which had been received from the developer. The fact of the matter, however, is that there was absolutely no application of mind by the Assessing Officer to the nature of the deposits. The order of assessment only contains the following observations: "Apart from the above, the company has entered into Development Agreements with Parsvnath Developers Limited for development of land belonging to the assessee company situated at Sahibabad and village Arthala, Ghaziabad for construction of flats thereon. It has received its share of advances from bookings of customers, whereas the construction is going on and is not complete. No sale has so far been booked, which as per policy of the company, is to be book ..... X X X X Extracts X X X X X X X X Extracts X X X X
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