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2015 (7) TMI 405 - ITAT HYDERABAD

2015 (7) TMI 405 - ITAT HYDERABAD - TMI - Revision u/s 263 - CIT-IV setting aside the assessment for the A.Y 2006-07 and directing the AO to redo the same - whether CIT-IV ought to have noted that the fact of execution of agreement of sale and receipt of advance for sale of land, the subsequent cancellation of the Agreement of Sale and refund of the monies stands fully proved beyond any doubt - tribunal directed the Assessing Officer to carry out the direction given by the CIT and pass consequen .....

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issed”. - M.A. No.43/Hyd/2014(Arising out of ITA No.1080/Hyd/2011 - Dated:- 20-3-2015 - Shri B. Ramakotaiah And Smt.Asha Vijayaraghavan JJ. For the Appellant : Shri A.V. Raghuram For the Respondent : Shri Rajat Mitra, DR ORDER Per Smt. Asha Vijayaraghavan, J.M. The assessee filed this miscellaneous petition against the order of the Tribunal in ITA No.1080/Hyd/2011 passed for A.Y 2006-07, dated 18.05.2012. 2. By this petition, the petitioner has stated as follows: The appeal was against an order .....

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ds agreement to sell land to the extent Ac 22.32 Gts for a total consideration of ₹ 5,01,60,000/-. The Appellant has not offered the above amount of ₹ 5,01,60,000 as the Agreement to sell was conditional upon securing certain permissions, which eventually were not secured, and the Agreement to sell was cancelled with mutual agreement. Though the Appellant has established the above facts with documentary evidence, the learned Commissioner of Income Tax has set aside the assessment and .....

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is entitled to receive ₹ 5,01,60,000/- towards sale consideration of the property and it is accrued to the assessee as the assessee has right to receive the same. As the assessee has been following the mercantile system of accounting and the whole amount of sale should be considered as accrued to the assessee. The CIT is justified in directing the Assessing Officer to examine the issue afresh. It is also on record that the amount accrued to the assessee during current year is ₹ 5,01, .....

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y or before a court of law. It is also be noted that the Sale Agreement was entered 2.11.2005. By 31st March, 2006 i.e., during the financial year relevant to assessment year 2006- 07 nothing has been brought on record to show that the Sale Agreement has become invalid or cancelled or advance money has been refunded by the assessee to the purchaser. In view of the above, we direct the Assessing Officer to carry out the direction given by the CIT and pass consequential order in accordance with la .....

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order of the Hon'ble Tribunal resulted into enhancement as it had straight away come to the conclusion that the income of ₹ 5,01,60,000/- accrued to the assessee. 5. It was further submitted that Commissioner of Income Tax directed the Assessing Officer to pass an assessment order in a particular fashion, which in itself, is illegal. But it was not a direction to make an addition. However, the Hon'ble Tribunal by giving finding on facts in paragraph 31 of its order has over stepped .....

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rder passed by the Hon'ble Tribunal has to be expunged from the order of the Hon'ble Tribunal. 6. In the aforesaid circumstances, it was prayed by the petitioner that the Tribunal may rectify the apparent error in paragraph 31 of its order dated 18.05.2012 passed by it in ITA No.1080/Hyd/2011 for A.Y 2006-07 which has the effect of enhancing the assessment, by expunging the entire findings and observations contained in Paragraph 31 of its order and limiting its order to the directions co .....

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l filed by the assessee read as follows: 1. The ld CIT-IV Hyderabad has completely erred in law and in the facts and circumstances of the case in setting aside the assessment for the A.Y 2006-07 and directing the AO to redo the same in the light of findings, observations and directions in the impugned order u/s 263 dated 28.03.2011. 2. The ld CIT-IV has failed to establish any error in the assessment order dated 24.12.2008 much less any prejudice to the revenue and consequently the assumption of .....

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urnished during the course of hearings u/s 263 proceedings, the verifications of original documents and records as required by the CIT and produced before him, prove the above facts and there is no scope for any adverse finding. The CIT in such circumstances ought to have dropped the proceedings initiated u/s 263. The CIT is completely. unjustified in directing the AO to re-do the assessment just to make further roaming and fishing enquiries, when there is not even an iota of evidence available .....

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