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2016 (4) TMI 339

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..... were sold subsequently. Consequently, we affirm the orders of Ld. CIT(A) and dismiss the grounds. - I.T.A. No. 127/HYD/2015 - - - Dated:- 4-3-2016 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER For The Revenue : Shri M. Sitaram, DR For The Assessee : Shri B. Satyanarayana, AR ORDER PER B. RAMAKOTAIAH, A.M : This 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% .....

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..... appellant submitted copies of income-tax returns and profit and loss account for A.Y.2011-12 and A.Y.2012-13. The details are summarized as under: Particulars 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 .....

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..... both the entities were retained with Mr. R. Srinivasulu and his wife Smt. R. Sreedevi. Rest of the partners / directors came out after reaching a 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 that the assessee received any money apart from ₹ 946,946/-. Further, the statement of the asse .....

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..... ion 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 enabling the enjoyment o], any immovable property. [Explanation 1]-For the purposes of sub-clauses (v) and (vi), immovable property shall have the same meaning as in clause (d) of section 269UA.] [Explanation 2]-For the removal of doubts, it is hereby clarified that transfe .....

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..... ered 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 of 10,400 sq.yds as on 11.02.2008. 5.2 It is also pertinent to mention that in subsequent years the plots were sold and the income was offered under the head business income. Since the cost of the plots was not debited to the profit and loss account in both the years i.e. A.Y.2011-12 and 2012-13 the sale consideration adopted for the purpose of computing capital gains shall be the cost of the plots and is to be debited to the profit and loss account in subsequent years for A.Y.2011-12 and A.Y.2012-13 . 5. Assessee is not aggriev .....

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