New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (4) TMI 339 - ITAT HYDERABAD

2016 (4) TMI 339 - ITAT HYDERABAD - TMI - Taxability of amount received - year of assessmnt - Held that:- No reason to interfere with the order of the Ld. CIT(A). There is no merit in Revenue’s grounds as the said settlement was entered on 11-02-2008 which falls in AY. 2008-09 and not in 2009-10. Just because a survey was conducted and statement was recorded, the amount cannot be brought to tax in AY. 2009-10. In view of that, we find no merit in the Revenue’s grounds on the issue. With referenc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

his is Revenue appeal against the order of the Commissioner of Income Tax (Appeals)-II, Hyderabad dated 03-11-2014. The issue in this appeal as contested by the Revenue is with reference to taxability of the amount and consideration to be adopted. 2. Briefly stated, assessee is a partner in M/s. Sree Projects and Director in M/s. Swadesh Villas Pvt. Ltd. Assessee has 5% share in M/s. Sree Projects and 9% shareholding in the company. Consequent to settlement between the parties by an agreement dt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ement was dt. 11-02-2008. Assessee also contested the valuation of the land assigned to assessee. 3. The detailed submissions by assessee before the Ld. CIT(A) are as under: 4. During the course of assessment as well as during appeal proceedings, the stand of the assessee/appellant was consistent in stating that the amount of ₹ 34,93,054/- was not received and therefore, the same was not offered to tax. It was further explained that though 10,400 square yards of land was allotted to the ap .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rticulars A.Y. 2011-12 A.Y. 2012-13 Gross Sales 28,54,400 30,00,800 Income returned after claiming certain expenses 19,91,690 21,75,880 Date of filing of income tax return 12.11.2012 14.11.2012 It is pertinent to mention that though the gross receipts realized on sale of plots were credited to profit and loss account, the cost of the plots was not debited to profit and loss account. The total land allotted to the appellant was 10,400 sq.yds, the land sold was 8894 sq.yds, balance land remaining .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

real estate ventures in and around Shadnagar. It was further submitted that after purchasing the land at Gudur Village, Kottur Mandai, Mahaboobnagar district, and after developing layout, they have realized that the land is covered by the G.O. No.111 dated 08.03.1996, according to which no residential layout can be carried out in the 84 specified villages and Gudur is also included in such list. It was explained that due to the G.O.No.111 prohibiting layout in Gudur Village, fall in real estate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

settlement for payment of certain cash and land. However, due to bad real estate conditions the agreed sum was not paid to the appellant except for an amount of ₹ 946,946/- which was offered as income in A.Y.2008-09. 4.3 The Assessing Officer simply made the addition stating that the assessee failed to demonstrate that he had not received money during the previous year relevant to A.Y.2009-10. It is also pertinent to mention that no information is brought on record by the AO in support 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

did not receive money . 4. Ld. CIT(A) after considering the submissions of assessee decided the issue as under: 5. 1 have carefully considered the factual position of the case. The issues for consideration are : (i) Whether there is any transfer of shares by the appellant to M/s. Swadesh Villas Pvt. Ltd. (ii) If there is a transfer of shares, what is the sale consideration to be adopted for computing the capital gains. 5.1 The provisions of section 2(47) defined the term 'transfer' read .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

saction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882); or (vi) any transaction (whether by way of becoming a member of, or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of transferring, or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ly, absolutely or conditionally, voluntarily or involuntarily, by way of an agreement (whether entered into in India or outside India) or otherwise, notwithstanding that such transfer of rights has been characterised as being effected or dependent upon or flowing from the transfer of a share or shares of a company registered or incorporated outside India;)" From the preliminary reading of the term 'transfer' as defined in the Act, the appellant is hit by the provisions of section 2( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

value of land to tax. Such value is purely notional, infact, there was tremendous fall in real estate market from 2008 onwards and lands were stated to have been sold at a later date for much lesser price. Therefore, it is appropriate that the sub-registrar value as on 11.02.2008 is to be considered as the sale consideration. In summary, the capital gain shall be brought to tax for A.Y.2008-09 by taking sale consideration equivalent of cash component received of ₹ 9,46,946/- plus SRO Value .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| 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