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 →

ACIT, Circle-1 Warangal And Others Versus Mr. Y. Radhakrishna, Warangal And Others

2015 (5) TMI 782 - ITAT HYDERABAD

Trading addition - estimating income from business of contracting by applying a net profit rate of 10% - CIT(A) allowed part relief - Held that:- The relevant bills/vouchers to support and substantiate his claim for various expenses could not be produced by the assessee before the A.O. for verification and since in the absence of such vouchers, it was not possible for the A.O. to verify the various expenses claimed by the assessee, we are of the view that the A.O. was fully justified in resortin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the view that the Ld. CIT(A) was fully justified in directing the A.O. to estimate the income of the assessee by applying net profit rate of 8%. Thus no infirmity in the impugned order of the Ld. CIT(A) giving part relief to the assessee - Decided against revenue.

Determination of income of the assessee from long term capital gain including his claim for exemption under section 54EC - Held that:- It is observed that the case made out by the assessee before the Ld. CIT(A) on this issue .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

T(A) on this issue and restore the matter to the file of the A.O. for deciding the same afresh after giving the assessee a proper and sufficient opportunity of being heard. - Decided in favour of assesse for statistical purposes. - ITA.No.1652/Hyd/2013, Cross Objection No.55/Hyd/2014 - Dated:- 29-4-2015 - Shri G. C. Gupta And Shri P. M. Jagtap,JJ. For the Petitioner : Mr. Rajat Mitra For the Respondent : Mr. K.V. Chalamaiah ORDER Per P. M. Jagtap, A.M. This appeal is preferred by the Revenue aga .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ngaged in the business of execution of civil contracts. The return of income for the year under consideration was filed by him on 30.09.2009 declaring total income of ₹ 98,39,610. During the course of assessment proceedings, the assessee could not produce the relevant bills and vouchers to support the various expenses claimed in respect of his contracting business. Since the expenses claimed by the assessee in the absence of supporting bills/vouchers were not verifiable, the A.O. proceeded .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

come of the assessee by applying a net profit rate as a result of failure of the assessee to produce the relevant bills/vouchers to support various expenses claimed by him. However, keeping in view that the net profit of the assessee was estimated by the A.O. in A.Y. 2007-2008 at 8%/of gross receipts, he held that the net profit rate of 10% applied by the A.O. in the year under consideration was on the higher side and it would be fair and reasonable to estimate the income of the assessee by appl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ious expenses claimed by the assessee, we are of the view that the A.O. was fully justified in resorting to estimation of the income of the assessee from contracting business by applying the net profit rate. As regards the net profit rate of 10% applied by the A.O. for estimating the business income, it is observed that in assessee s own case for A.Y. 2007-2008, a net profit rate of 8% was applied by the A.O. to estimate the business income of the assessee and all the relevant facts including th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

1 and 2 of assessee s cross objection involve a common issue relating to the determination of income of the assessee from long term capital gain including his claim for exemption under section 54EC of the Act. 6. In the return, income from short term capital gain was declared by the assessee as having arisen from sale of two flats. During the course of assessment proceedings, assessee however, produced the copy of sale deed of only one flat and could not produce copy of sale deed of the other fl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ds. Since the corresponding capital gain had arisen to the assessee as a result of sale of land to builder on 25.11.2006 and investment in Rural Electrification Corporation bonds was made on 22.12.2008, the A.O. disallowed the claim of the assessee for exemption under section 54EC in the assessment completed under section 143(3). 6.1. The disallowance made by the A.O. on account of its claim of exemption under section 54EC as well as the enhancement made on account of short term capital gain was .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed at Bagh Ameeri Village, Balanagar Mandal, RR District for a total consideration of ₹ 18,56,250/- vide registered document No. 4639 of 2005 dt. 15.06.2005. It was stated that subsequently the appellant entered into a development agreement with M/s. Vijaya Builders and Developers of Habsiguda, Hyderabad on 25.11.2006, whereby the appellant was to receive 45% of built up area i.e. finished flats in all respects in lieu of 55% of land area surrendered to the builder. It was stated that the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stated that the total consideration received during the FY 2008-09 was ₹ 37 lakhs. It was further stated that the appellant in the computation of income filed along with the return of income for the AY 2009-10, had erroneously worked out the long term capital gain on sale of builder's 55% share of land of 605 sq. yards out of 1100 sq. yards at ₹ 48,02,227/- and claimed the entire amount as exempt u/s. 54EC of the Act on purchase of Rural Electrification Bonds on 01.11.2008 to the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

land to builder was assessable in the year of such transfer or in subsequent year, and if so what was actually realised by the appellant by transfer of land to builder; whether it was 'short term or 'long term' capital gains. It was stated that the land was purchased on 15.06.2005 and the same was handed over the builder on 25.11.2006 for development and that in such a situation, the capital gain would be 'short term and should arise only in the financial year in which the asset .....

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. 54EC by appellant for AY 2009-10 having been found to be invalid in the eye of law, may pleas be ignored and the consequent addition of ₹ 50 lakhs made by the AO be deleted. 6.3 In respect of long term and short term capital gains calculation, the appellant had submitted that out of 14 flats received as the share of the appellant, 8 flats were sold during the FY 2007-08 relevant to AY 2008-09 and two flats were sold in FY 2008-09 for a consideration of ₹ 37,00,000/- and the result .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

years 2009-10 and 2010-11 at 2 flats in each year. The appellant pleaded to consider the amount of ₹ 2,73,985/- as long term capital gain in place of ₹ 1,34,198/- declared in the return of income and that the amount of ₹ 33,10,000/- be considered as short term capital gain for substitution in place of ₹ 44,82,344/- determined by the AO. Copies of the sale deeds etc.] were furnished by the appellant in support of the claims made. 6.2. After considering the submissions made .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2006 and in lieu of the land, appellant was to receive 45% of the built up area i.e. finished flats in all respect 55% of land area surrendered to the builder. The appellant was thus allotted 14 flats with a total built up area of 18,000 sq.ft. The builder had handed over the flats in the financial year 2007-08 relevant to the AY 2008-09 and the appellant had sold 8 flats during AY 2008-09 and 2 flats in the asst. year under consideration i.e. 2009-10 and balance of the flats in subsequent years .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on 15.06.2005 and had given it for development vide agreement dt. 25.11.2006, as such the gains arising out of such transaction in the year 2007-08 are to be treated as short term capital gains. Further, the flats were handed over by the builder to the appellant during the financial year 2007-08. By this perspective, the gains arisen to the appellant on account of development agreement and sale of flats are to be treated as short term capital gains. On facts, the amount considered by the assessi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in the short term capital gains were available to the assessee at two stages i.e. on account of transfer of property (land) vide the agreement for development dated 25.11.2006, which are relatable to the AY 2007-08 and the further short term capital gains on sale of flats received by appellant from the developer, in the respective years of sales of flats. Hence, the assessing officer is directed to adopt the figure of ₹ 35,83,950/- for computation of short term capital gains as has been na .....

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