TMI Blog2016 (5) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... received for transfer of such right being a capital asset to be assessable under the head ‘income from capital gains’. Hence we do not find it necessary to interfere with his Order. Accordingly, we hereby confirm the order of the learned Commissioner of Income Tax (Appeals) on this issue. - Decided against revenue Debonding charges / Name transfer expenses - Held that:- It is evident from the order of the CIT(Appeals) that he has examined the issue in detail and observed that the Debonding charges and name transfer expense were already excluded and only the balance amount of ₹ 2.38 crores was treated as capital gain of the assessee thereby any further disallowance would amount to double addition in the case of the assessee. For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) The learned Commissioner of Income Tax (Appeals) has erred by directing the Assessing Officer to treat the income arising out of EOU unit in Mumbai SEPZ as income from capital gains as against business income . ii) The learned Commissioner of Income Tax (Appeals) has erred by deleting the disallowance made by the learned Assessing Officer towards de-bonding charges amounting to ₹ 12,48,237/- and name transfer expenses of ₹ 8,82,181/- as business expenditure. 4. Brief facts are that the assessee is a firm engaged in the business of export of pre-recorded video and audio cassettes from SEEPZ, Mumbai. There was a search in the premises of the assessee s group on 03.03.2009 and certain incriminating materials were sei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- being the amount received towards the transfer of leasehold rights of the premises occupied by the assessee in the SEEPZ Mumbai and treated the same as income from capital gain . However, the learned Assessing Officer opined that the claim of the assessee was incorrect because the transaction is in the nature of business receipts and therefore it has to be taxed under the head income from business . On appeal, the learned Commissioner of Income Tax (Appeals) agreed with the view of the assessee that the income derived from transfer of the lease hold rights in the SEZ unit at Mumbai would amount to sale of a right in capital Asset and accordingly it will be taxable under the head income from capital gains . The relevant portion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. In the circumstances, the Assessing Officer is directed to treat the income returned as income from capital gains. 7. The learned Departmental Representative vehemently argued in support of the order of the learned Assessing Officer stating that the income received from sale of SEZ unit at Mumbai should be treated as income from business while as on the other hand, the learned Authorized Representative argued in support of the order of the learned Commissioner of Income Tax (Appeals). 8. We have heard the rival submissions and carefully perused the materials available on record. From the facts of the case it is apparent that the assessee had only transferred his right to occupy / possession of the unit to the buyer and had dism ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer was justified and pleaded to confirm his order. On the other hand the learned Authorized Representative submitted before us that the assessee had adduced sufficient evidence to substantiate that these expenses were paid by the purchaser and adjusted towards the payment due to the assessee and further the gross amount was declared as a capital gain amounting to ₹ 2.38 crores. The learned Authorized Representative further submitted that these facts were examined by the learned Commissioner of Income Tax (Appeals) and he had categorically observed that any further disallowance would amount to double addition. Hence, it was pleaded that the order of the learned Commissioner of Income Tax (Appeals) may be confirmed. 11. We have hear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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