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Asstt. Commissioner of Income Tax Circle-12 (1) , New Delhi Versus Greater Ashoka Land And Development Co. Pvt Ltd

2015 (10) TMI 1586 - ITAT DELHI

Receipt of advances - allowability of the expenses towards cost of land and development charges - CIT(A) held that as per accounting principles the true and correct income which could be taxed in the hands of the assessee company would be after deduction of relevant expenses as shown by the assessee only during first appellate proceedings - Held that:- We note that the assessee raised the issue of allowability of the expenses towards cost of land and development charges in A.Y. 2005-06 during fi .....

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his issue requires proper examination and verification at the end as to whether the land and development charges were included in the amount of liabilities which was assessed as income of the assessee for the year under consideration on the basis of statement of Shri Sunil Sharma the Director of the company recorded u/s 131. The AO shall also verify and examine that whether the amount of ₹ 1,07,87,357/- was not reconciled while computing the trading results of the assessee for A.Y. 2005-06 .....

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come Tax (Appeals)-X, New Delhi dated 13/09/2010 in appeal no. 222/2009-10 for A.Y. 2005-06. 2. Effectively the Revenue has raised the following grounds in this appeal: 1. "On the facts and circumstances of the case and in law, the order of the CIT(A) is wrong, perverse, illegal and against the provisions of law which is liable to be set aside; 2. On the facts and circumstances of the case and in law, the ld. CIT(A) has erred in deleting the addition of ₹ 1,07,87,357/- out of total ad .....

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s filed by ld. DR and order of the Hon'ble Jurisdictional High Court of Delhi in ITA No. 121/Del/2014 dated 01/04/2014 in the case of CIT vs. Girnar Infrastructure Pvt. Ltd. As relied by the ld. Counsel of the assessee. 4. The ld. Departmental Representative drawn our attention towards para 3 at page 1 and para 2 at page 2 of the assessment order and submitted that the assessee was asked to submit parawise details of such customers advances amounting to ₹ 4,12,69,480/- and in response .....

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R vehemently contended that the AO was justified in relying upon the statement of Shri Sunil Sharma, Director of the assessee company in holding that liability amounting to ₹ 1,67,64,815/- as on 31.03.2007 had ceased to exist and the assessee had voluntarily offered this sum as income in the year under consideration. The ld. DR further pointed out that the CIT(A) has erred in deleting the addition of ₹ 1,07,87,357/- out of total addition of ₹ 1,67,64,815/- made by the AO withou .....

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e true and correct income which could be taxed in the hands of the assessee company would be after deduction of relevant expenses as shown by the assessee only during first appellate proceedings. The ld. DR pointed out that the CIT(A) went on to consider such submission and explanation of the assessee which were not made before the AO during assessment proceedings and the CIT(A) considered the same without confronting the submissions and explanations of the assessee to the AO, in contravention w .....

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ed from the amount of advances of customers and the same was not reconciled in the trading results of the relevant assessment years while computing the cost of land sold and development charges thereon. 6. The ld. Counsel of the assessee drawn our attention towards paper book page no. 191 to 196 at para 10 and submitted that the assessee was not provided due opportunity of hearing before the AO and the assessee submitted detailed submissions during first appellate proceedings before CIT(A) vide .....

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and development charges was to be allowed and total income was to be computed after allowance of such expenses. However, the ld. Counsel fairly accepted that these submissions and explanation was not raised before the AO and the CIT(A) did not call any remand report from the AO and the AO was not also provided due opportunity to comment upon these explanation and submissions of the assessee. 7. On careful consideration of above submissions of both the sides at the very outset, we note that the a .....

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