Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Income Tax, Central-IV Versus M/s. Ruby Mills Ltd.

2015 (5) TMI 728 - BOMBAY HIGH COURT

Transaction in the nature of adventure - Computation of capital gain - amount received pursuant to the tripartite agreement - Tribunal termed that the amount received pursuant to the tripartite agreement is assessable to tax under the head "Capital Gains" only - Held that:- The Tribunal concluded that having regard to the tests, it is clear that a solitary or single transaction may be termed as adventure in the nature of trade even though the assessee, in a normal course, is not engaged in such .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assignment of leasehold interest took place. It was not a sale or transfer of property by the assessee for a profit but since use could not be made, that initially a conversion permission was sought but even thereafter a utilization of the property for the assessee's purpose did not come through. It is in these circumstances that the assignment with the consent of CIDCO has taken place. Therefore, the Tribunal termed that the amount received pursuant to the tripartite agreement is assessable to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, is not perverse or vitiated by any error of law apparent on the face of the record. - Decided against revenue. - Income Tax Appeal No. 94 of 2014 - Dated:- 23-4-2015 - S. C. Dharmadhikari And A. K. Menon,JJ. For the Appellant : Mr Tejveer Singh For the Respondents : Mr R Murlidhar & Mr B G Yewale ORDER P. C. We have heard Mr. Tejveer Singh, the learned counsel, appearing in support of this Appeal for the revenue and Mr. R. Murlidhar, the learned counsel, appearing for the assessee-responde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

other words, the assessee only had a leasehold interest in the immovable property which belong to the public body, namely, City Industrial and Development Corporation of Maharashtra (for short "CIDCO"). The lease was obtained by the assessee for construction of a corporate office on the land. That the office could not be set up but the assessee approached the CIDCO so as to assign leasehold interest for the remainder of the term in favour of a third party but incurred expenditure, too .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and the appeal deserves to be admitted. 3. With the assistance of Mr. Tejveer Singh, we have perused the appeal paper book including the impugned order. The Tribunal noted the rival contentions. The stand of the assessee was that the assessee company was allotted a plot of land on lease by CIDCO on 18th December, 1993 under Corporate Shifting Scheme with a specific condition that the plot must be used for construction of office building only. Therefore, when this agreement was executed and poss .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s otherwise a penalty would be imposed by CIDCO. Therefore, the matter was placed before the Board of Directors in March 2005 and it was decided to transfer the leasehold rights to the buyer for a consideration of ₹ 2,95,55,000/-. Thereafter application was made to the CIDCO for grant of permission to assign these leasehold rights in the plot to the buyer. The CIDCO granted such permission, the tripartite agreement dated 24th March, 2005 was executed and the assessee received the impugned .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version