TMI Blog2019 (1) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... hing the Assessing Officer under section 195 either. As regards the withdrawal of the CBDT circular holding that the commission payments to non resident agents are not taxable in India, nothing really turns on the circular, as de hors the aforesaid circular, we have adjudicated upon the taxability of the commission agent's income in India in terms of the provisions of the Income Tax Act as also the relevant tax treaty provisions. Addition u/s 14A - Held that:- CIT(A) has relied upon as a catena of case law in restricting the impugned disallowance to the extent of exempt income only. In Joint Investments Pvt. Ltd. vs. CIT (2015 (3) TMI 155 - DELHI HIGH COURT) has already settled the issue in assessee’s favour that such disallowance cannot exceed the relevant corresponding exempt income figure. We therefore reject Revenue’s instant third substantive ground as well for this precise alone. Disallowing assessee’s provision for liquidated damaged - Held that:- Revenue’s grievance that assessee’s liquidated damages are in the nature of penal liability not allowable as expenditure incurred wholly and exclusively for the purpose of its business. She fails to dispute the clinching fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -17. Relevant proceedings in both assessment year(s) are u/s 143(3) of the Income Tax Act, 1961; in short the Act . Heard both the parties. Case files perused. 2. It emerges at the outset that the Revenue s two appeals ITA No.1615 and 1616/Kol/2017 raise identical substantive grounds. The Revenue s first substantive ground in its both appeals plead that CIT(A) has erred in law as well as on facts in admitting additional evidence in violation of Rule 46A of the Income Tax Rules, 1962. We do not see any additional evidence admitted in lower appellate proceedings of all much less in violation of said statutory provision. Its first substantive grievance raised in instant two appeals stands decline therefore. 4. Next comes Revenue s second identical substantive grievance in both assessment years seeking to revive the Assessing Officer s action disallowing assessee s export commission payments of ₹63,56,458/- and ₹19,88,798/- on account of non-deduction of TDS thereby invoking sec. 40A(a)(i) of the Act. We treat the former assessment year 2011-12 as the lead assessment year containing the CIT(A) s following detailed discussion on the issue. 5. I have consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the disallowance of the appellant's claim of expenses is that in spite of the fact that the payer is a resident, services are utilized by the resident and business is carried out in India, the appellant did not deduct tax at source (TOS) on the commission payments whereas TOS has been made on payments of testing and global service agreement. In fact, it is mentioned in the impugned order that the appellant is making payment to foreign agents and thereby receiving their services enabling the sales of products and articles of the appellant thereby it earns its income in India and therefore the provisions of Section 9(1) are applicable in this case. 5.2 It is also gathered from the impugned order that reliance has been made on the following court judgements - Transmission Corporation of AP Ltd Vs CIT 239ITR 587 (SC) Van Oord ACZ India (P) Ltd Vs CIT 189 TAXMANN 232 (Delhi) CIT Vs Havells India Ltd 352 ITR 370 (Del) In these judicial precedents, it has been held that the payer is duty-bound to deduct TDS as per the provisions of Section 195 of the Act unless the permission of deducting at a lower rate or non-deduction of tax is granted by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat such payments can be allowed as expenditure without effecting TDS, [or rather not considered under the ambit of Section 40(a)(i)], if the following criteria are present- Non-resident Agent operates its business activity outside India Commission paid in relation to services provided outside India Commission remitted to it directly outside India Non-resident Agent does not have any PE or permanent business place in India No part of its income arises in India Non-resident's Income is not chargeable to tax in India From the submissions of the appellant it is gathered as below - Commission agents have rendered services and have no establishment In India Appellant is 100% export oriented unit and claimed exemptions u/s 10B Payments to foreign commission agents made in foreign currency As foreign agents render services outside India and have no establishment In India, TDS provisions Inapplicable Thus, it can be safely inferred that as the foreign commission agents reside outside India and do not render any technical services , the non-resident's income will not come under the provisions of Section 9(1)(vii)(b) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is admittedly a company manufacturing and selling electrical conductors, insulated electrical wire and cables, high tension insulators and electrical energy. It had paid Mohd Abdul Sadek, Mady Italy, Braseco Ghana Ltd. sums of ₹3,10,616/-, ₹21,15,899/- and ₹38,73,946/- as well as to other small parties to the tune of ₹55,997/-respectively totalling to ₹63,56,458/ in the relevant year in the nature of commission for securing export orders. There is no dispute that the said payees have neither any permanent establishments in India nor had they rendered their commission services in India which could be held to the managerial, professional or technical in nature. The question as to whether the said commission payments attract TDS deduction provision or not stands adequately answered by this tribunal co-ordinate bench s decision in ITA No.249/Ahd/2015 and 48/Rjt/2015 in Welspun Corporation Ltd. vs. DCIT decided on 03.01.2017as follows:- 31. The scheme of taxability in India, so far as the non residents, are concerned, is like this. Section 5(2), which deals with the taxability of income in the hands of a non-resident, provides that the total income of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poses 32. So far as deeming fiction under section 9(1)(i) is concerned, it cannot be invoked in the present case since no part of the operations of the recipient's business, as commission agent, was carried out in India. Even though deeming fiction under section 9(1)(i) is triggered on the facts of this case, on account of commission agent's business connection in India, it has no impact on taxability in the hands of commission agent because admittedly no business operations were carried out in India, and, therefore Explanation 1 to Section 9(1)(i) comes into play. 33. There are a couple of rulings by the Authority for Advance Ruling, which support taxability of commission paid to non-residents under section 9(1)(i), but, neither these rulings are binding precedents for us nor are we persuaded by the line of reasoning adopted in these rulings. As for the AAR ruling in the case of SKF Boilers Driers Pvt Ltd [(2012) 343 ITR 385 (AAR)], we find that this decision merely follows the earlier ruling in the case of Rajiv Malhotra [(2006) 284 ITR 564] which, in our considered view, does not take into account the impact of Explanation 1 to Section 9(1)(i) properly. That was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s expressed by the Hon'ble AAR, which do not fetter our independent opinion anyway in view of its limited binding force under s. 245S of the Act, do not impress us, and we decline to be guided by the same. The stand of the revenue, however, is that these rulings, being from such a high quasi-judicial forum, even if not binding, cannot simply be brushed aside either, and that these rulings at least have persuasive value. We have no quarrel with this proposition. We have, with utmost care and deepest respect, perused the above rulings rendered by the Hon'ble Authority for Advance Ruling. With greatest respect, but without slightest hesitation, we humbly come to the conclusion that we are not persuaded by these rulings 34. Coming to Section 9(1)(vii)(b), this deeming fiction- which is foundational basis for the action of the Assessing Officer, inter alia, provides that the income by way of technical services payable by a person resident in India, except in certain situationswhich are not attracted in the present case anyway, are deemed to be income accruing or arising in India. Explanation 2 to Section 9(1)(vii)defines 'fees for technical services' as any considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r rendering of any managerial, technical or consultancy services (Emphasis by underlining supplied by us) . The services rendered by the agents, even if these services are held to be in the nature of technical services, may be technical services, but the amounts paid by the assessee are not for the rendition of these technical services nor the quantification of these amounts have any relation with the quantum of these technical services. The key to taxability of an amount under section 9(1)(vii) is that it should constitute consideration for rendition of technical services. The case of the revenue fails on this short test, as in the present case the amounts paid by the assessee are consideration for orders secured by the assessee irrespective of how and whether or not the agents have performed the so called technical services. 36. Let us sum up our discussions on this part of the scheme of Section 9, so far as tax implications on commission agency business carried out by non-residents for Indian principals is concerned. It does not need much of a cerebral exercise to find out whether the income from the business carried on by a non-resident assessee, as a commission agent an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services, may be rendered academic in effect. Learned CIT(A) has very well summarized the judicial precedents in support of this line of reasoning, and, in an erudite and extended discussion, dealt with each limb of the definition of technical services. These findings are reproduced by us earlier in this order. While, for the sake of brevity, we need to repeat each of these reasons analysed by the learned CIT(A), suffice to say that we approve his well-reasoned findings and line of reasoning, and we will also briefly touch upon this aspect of the matter. Before we do so, we may take note of some of the clauses in a typical commission agreement entered into by the assessee with its commission agents. The key provisions in this agreement, a copy of which is placed before us at pages 103 to 109 of the paperbook, are as follows: Article 5 - AGENT'S OBLIGATION The AGENT shall carry out ail the duties normally rendered by an AGENT including but not limited to the following: 5.1 To act exclusively on behalf of the PRINCIPAL and not source, procure or market products of similar type manufactured by competitive companies without prior written consent of the PRINCIPAL. 5.2 To us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GENT on receipt of an inquiry from the TERRITORY requiring direct supply. 7.3 The AGENT shall be entitled to commission as agreed upon in the contract. 7.4 To take into consideration the recommendations made by the AGENT while making the offer. 7.5 To provide all informative data, catalogues and technical material (all in the English Language) regarding the PRINCIPAL'S products and activities and keep the AGENT informed about all relevant charges. 7.6 To offer competitive prices as far as possible to enable the sale of the products as the agent is only entitled for commissions and not fixed salary on his work. 7.7 The PRINCIPAL nominates Mr. Ranjit Lala as the contact person with the AGENT for all correspondences and communications. Article 9 - TERMINATION. 9.1 This Agreement shall remain valid for a period of One year from the date of signing. The said Agreement can also be terminated by either party anytime giving notice to the other party of at least 90 days in advance by fax and followed by registered letter stating reasons for the termination. The agreement can be reinstated for a further period of two years based on mutual agreement and then after its te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from receipt of payment by WELSPUN. 38. As is clear from the above provisions of the agreement, the work that the agent has to done under this agreement, as is stated unambiguously in the agreement itself, is to carry out ail the duties normally rendered by an agent including but not limited to the activities specified therein. The consideration for which the payment made to the commission agent is obtaining of the orders and not any services per se. The consideration is computed on the basis of business procured. Obviously, if there are no business generated for the principal, the agent gets nothing. Quite clearly, what is done by the agent is not a rendition of service but pure entrepreneurial activity. The work actually undertaken by the agent is the work of acting as agent and so procuring business for the assessee but as the contemporary business models require the work of agent cannot simply and only be to obtain the orders for the product, as this obtaining of orders is invariably preceded by and followed by several preparatory and follow up activities. The description of agent's obligation sets out such common ancillary activities as well but that does not over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, on behalf of the assessee, which can only be done by a specialist in this field so as to convince the clients about Welspun's suitability to the contract . This at best signifies complexity in the businesses and the need of technical inputs in the process of businesses, particularly when the products being dealt with are technical products, but then merely because technical inputs are needed in carrying out business activity, it does not become a technical service rather than a business activity. At the cost of repetition, we must emphasize the important distinction between a business activity, requiring understanding of related technology, and rendition of technical services simplictor. In any case, what has been described as a technical service is the service being rendered to the buyer but the payment received by the commission agents is not for this service per se but for generating business orders for the assessee. Generating business or securing orders is an entrepreneurial activity and cannot, by any stretch of logic, be treated as a technical service per se. The same is the position with regard to assistance with respect of logistics, such as shipping and handling s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndered outside India; (b) the Tax Deduction at Source (TDS) is required to be made on all payments to non-residents, only if such payments are liable to be taxed in India. (c) following the decision of this Court, CIT v. Faizan Shoes (P.) Ltd. [2014] 367 ITR 155/226 Taxman 115/48 taxmann.com 48 (Mad.), the assessee is not liable to deduct tax at source, when the nonresident agent provides services outside India on payment of commission. 5.2 The contention of the Revenue is that such services are attracted by Explanation (2) to Section 9 (1) (vii) of the Act and therefore TDS certificate is essential. 6. Whether this contention is correct, is the issue to be decided. 7. In order to appreciate this contention, it is necessary to consider the relevant provisions of the Act:-- (i) Section 40(a)(i) of the Act :-- Section 40 - Amounts not deductible: Notwithstanding anything to the contrary in sections 30 to 38, the following amounts shall not be deducted in computing the income chargeable under the head Profits and gains of business or profession , -- (a) in the case of any assessee -- (i) any interest (not being interest on a loan issued for public subscrip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest referred to in section 194LB or section 194LC) or section 194LD or any other sum chargeable under the provisions of this Act (not being income chargeable under the head Salaries ) shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force : Provided that in the case of interest payable by the Government or a public sector bank within the meaning of clause (23D) of section 10 or a public financial institution within the meaning of that clause, deduction of tax shall be made only at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode : Provided further that no such deduction shall be made in respect of any dividends referred to in section 115-O. [Explanation 1] :............... [Explanation 2.- For the removal of doubts, it is hereby clarified that the obligation to comply with sub-section (1) and to make deduction thereunder applies and shall be deemed to have always applied and extends and shall be deemed to have always extended to all per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made credited to the account of the payee. 8. The question now is, whether the assessee ought to have deducted tax at source as contemplated under Section 195 of the Act, when the assessee paid commission to foreign agent. 9. This question has been answered by the Hon 'ble Supreme Court, in the case of G.E.India Technology Centre (P.) Ltd. (supra), in which, it is very categorically held that the tax deducted at source obligations under Section 195(1) of the Act arises, only if the payment is chargeable to tax in the hands of the non-resident recipient. 9.1 Therefore, merely because a person has not deducted tax at source or a remittance abroad, it cannot be inferred that the person making the remittance, namely, the assessee, in the instant case, has committed a default in discharging his tax withholding obligations because such obligations come into existence only when the recipient has a tax liability in India. 9.2 The underlying principle is that, the tax withholding liability of the payer is inherently a vicarious liability on behalf of the receipient and therefore, when the recipient / foreign agent does not have the primary liability to be taxed in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvoked by the Assessing Officer, has no application to the facts of the assessee's case. 13. In this case, the commission payments to the non resident agents are not taxable in India, as the agents are remaining outside, services are rendered abroad and payments are also made abroad. 14. The contention of the learned counsel for the Revenue is that the Tribunal ought not to have relied upon the decision G.E.India Technology's case, cited supra, in view of insertion of Explanation 4 to Section 9(1)(i) of the Act with corresponding introduction of Explanation 2 to Section 195(1) of the Act, both by the Finance Act, 2012, with retrospective effect from 01.04.1962. 15. The issue raised in this case has been the subject matter of the decision, in the recent case, CIT v. Kikani Exports (P.) Ltd. [2014] 369 ITR 96/[2015] 232 Taxman 255/49 taxmann.com 601 (Mad.) wherein the contention of the Revenue has been rejected and assessee has been upheld and the relevant observation reads as under:-- '... the services rendered by the non-resident agent could at best be called as a service for completion of the export commitment and would not fall within the definition of fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erform logistics services such as transport, procurement, custom clearance, sorting, delivery, warehousing and picking up services (Local services) within India (Local operating area). It has further been provided that Menlo India may also seek similar services from the assessee- company such as transport, procurement, customs clearance, sorting, delivery, warehousing and pick up services (International services) outside India. In the present appeal we are concerned with the International services provided by the assessee to Menlo outside India. These services comprise of transport, procurement, customs clearance, sorting, warehousing and pick up services on the cargo exported by Menlo on behalf of its customers. Having noted the nature of services provided by the assessee outside India, for which Menlo India made the payment, let us consider if these can be described as managerial or technical or consultancy services. 7. First we will consider the ambit of 'managerial services' to test whether the instant services can qualify to be so called. Ordinarily the managerial services mean managing the affairs by laying down certain policies, standards and procedures and then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d loading of consignment, custom clearance and transportation to the ultimate customer. In our considered opinion, it is too much to categorize such restricted services as managerial services. We, therefore, jettison this contention raised on behalf of the Revenue. 9. Now we take up the next component of the definition of fees for technical services , being 'consultancy services', which has been pressed into service by the learned CIT(A) to fortify his view that the amount received by the assessee is covered within section 9(1)(vii). The word consultancy means giving some sort of consultation de hors the performance or the execution of any work. It is only when some consideration is given for rendering some advice or opinion etc. that the same falls within the scope of consultancy services . The word 'consultancy' excludes actual 'execution'. The nature of services, being freight and logistics services provided by the assessee to Menlo India has not been disputed by the authorities below. There is nothing like giving any consultation worth the name. Rather such payment is wholly and exclusively for the execution in the shape of transport, procurement, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee within the fold technical services . In reaching this conclusion the learned CIT(A) also relied on the order passed by the Mumbai bench of the Tribunal in Blue Dart Express Limited Vs. JCIT. Let us examine the facts of that case. The assessee there claimed deduction u/s 80-O in respect of its foreign exchange earnings for rendering technical / professional services to a US Multi International company. During the course of assessment proceedings, the A.O. required the assessee to furnish the nature of services rendered and also the calculation of deduction. The assessee did it. On being satisfied the A.O. granted deduction u/s 80-O. By exercising the power u/s 263, the learned CIT held the assessment order to be erroneous and prejudicial to the interest of the Revenue to the extent of granting deduction u/s 80-0. When the matter came up before the Tribunal, it was observed that the issue is debatable and hence outside the ambit of section 263. Apart from that, it was also observed that the assessee was engaged in integrated air and ground transportation of time sensitive packages to various destinations rendering commercial services. It was in this context that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be universally applied. Due to material difference in the language of sections 9(1)(vii) and 80-Oas discussed above, we hold that the decision in Blue Dart Express Limited (supra),can not be held to be supporting the case of the Revenue. 13. The ld. CIT(A) in reaching the conclusion that the assessee rendered 'technical services' also observed that its 'business structure is time bound service coupled with continuous real time transmission of information by using and also making available advanced technology in the form of sophisticated equipment and software.' He was swayed by the contention of the assessee that the Manlo India or the ultimate customer could track the movement of cargo with the help of computers. We have noted supra that the consideration received by the assessee did not include any consideration for the supply of any equipment to Manlo India. Now we will examine as to whether the use of computer in any manner for knowing the location of the cargo at a particular time, can be held as technical service. 14. Explanation to section 9(1)(vii) defines the expression fees for technical services as consideration for rendering 'manageri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'technical services'. We, therefore, repel this contention raised on behalf of the Revenue. 17. Thus it can be noticed that the payment made to the assessee in question is not a consideration for managerial or technical or consultancy services. That being the position, it cannot fall within the ambit of section 9(1)(vii). 40. We may also take note of another decision of a coordinate bench dealing with materially similar question dealing with taxability of income in the hands of non resident commission agents, representing Indian principal, in which similar activities were said to have been performed. In the case of Armyesh Global Vs ACIT [(2012) 51 SOT 564 (Mum)], the coordinate bench has, inter alia, observed as follows: 16. We have considered the issue and examined the facts on record. The learned Assessing Officer tried to invoke the definitions of technical services on the commission paid to the foreign company. The reason being that commission payment to non resident is not covered by the provisions of section 40(a)(ia), as it has only applicable to any interest royalty, fees for technical services or other sum chargeable under this act which payable outside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions and particularly of delivery and payment as fixed by the principal. 2.3 The Agent shall be responsible for negotiating with all parties in their territory (area). The Agent shall travel in their territory (area) regularly to visit customers, and is bound to keep concluded contracts secret. The Agent shall always keep the principal informed about their activities and shall supply the principal, at least once every quarter, with reports on economic developments and market conditions in the territory (area) and at the same time, convey to the principal, the Agent's observations with respect to activities of competitors. The Agent shall report immediately on particular profitable business possibilities and extraordinary events. 2.4. The Agent shall abstain from any competition whatsoever against the principal and shall not promote competition by third persons. In particular, the Agent shall not act for competitive firms as a commercial Agent, Commission Merchant or Distributor, nor shall the Agent associate directly or indirectly with competitive firms. The Agent shall not, for all time exploit or disclose to other persons any business and production secrets of the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv)...(v)...(vi) (vii) Income by way of fees for technical services payable by-- (a) the Government; or (b) a person who is a resident, except where the fees are payable in respect of services utilized in a business or profession carried on by such person outside India or for the purposes of making or earning any income from any source outside India ; or (c) a person who is a non-resident, where the fees are payable in respect of services utilized in a business or profession carried on by such person in India or for the purposes of making or earning any income from any source in India : [Provided that nothing contained in this clause shall apply in relation to any income by way of fees for technical services payable in pursuance of an agreement made before the 1st day of April, 1976, and approved by the Central Government.] [Explanation 1.--For the purposes of the foregoing proviso, an agreement made on or after the 1st day of April, 1976, shall be deemed to have been made before that date if the agreement is made in accordance with proposals approved by the Central Government before that date.] Explanation [2].--For the purposes of this clause, fees for technical s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om these payments or, for that purpose, even not approaching the Assessing Officer for order under section 195. In our considered view, the assessee, for the detailed reasons set our above, did not have tax withholding liability from these payments. As held by Hon'ble Supreme Court in the case of GE India Technology Centre Pvt Ltd Vs CIT [(2010) 327 ITR 456 (SC)], payer is bound to withhold tax from the foreign remittance only if the sum paid is assessable to tax in India. The assessee cannot, therefore, be faulted for not approaching the Assessing Officer under section 195 either. As regards the withdrawal of the CBDT circular holding that the commission payments to non resident agents are not taxable in India, nothing really turns on the circular, as de hors the aforesaid circular, we have adjudicated upon the taxability of the commission agent's income in India in terms of the provisions of the Income Tax Act as also the relevant tax treaty provisions. 42. In view of these discussions, we uphold the relief granted by the CIT(A) and decline to interfere in the matter. 6. We adopt the above detailed reasoning mutatis mutandis to hold that CIT(A) has rightly deleted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r liquidated damages) for breach of contract have been concluded as payments which are penal in nature. 5.7a. From the submissions of the appellant filed at the appellate stage, it is observed that these payments are compensatory in nature and accordingly allowable. This is also observed from the court decision is relied upon by the appellant and mentioned in its submissions. The AR s argument that such damages are business expenditure incurred on account of contractual default and thus are contractual liability and not penal liability appear plausible. The Apex Court in Prakash Cotton Mills Ltd. vs. CIT 201 ITR 684 has held, inter alia,- The decision of this court in Mahalakshmi Sugar Mills Co. (1980) 123 ITR 429 and the decision of the Division Bench of the Andhra Pradesh High Court in Hyderabad Alwyn Metal Works Ltd. (1988) 172 ITR 113 with the views of which we are in complete agreement, are, in our opinion, decisions which settle the law on the question as to when an amount paid by an assessee as interest or damages or penalty could be regarded as compensatory (repatory) in character as would entitle such assessee to claim it as an allowable expenditure under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tantive ground is that both the lower authorities have erred in making Long Term Capital Gains addition of ₹19,81,550/- in respect of sale of its land. The CIT(A) s discussion on the issue reads as under:- 5.8. With regard to the ground at (e)(i) and (e)(ii) relating to the addition with regard to the capital gain on sale of land in the impugned order it is observed from the available records that the appellant declared capital gains toward sale of land at Ghaziabad a ₹ 26,56,16,841/- adopting the cost of acquisition at ₹ 8,01,904/- @Rs.40.1/- per square yard). However, subsequently, the appellant declared capital gain on the same sale at ₹ 26,36,35,288/- in the revise return of income (taking the cost of acquisition @ ₹ 60.00 per square yard. This is on the basis of the report of a Registered Valuer. 5.8a From the impugned order, it is observed that the capital gains was recomputed taking the cost of acquisition @ ₹ 40/- per square yard as per the original return of income filed by the appellant and the difference (Rs.19,81,550/-) was added to the appellant s income returned. It is also observed that the rate of ₹ 40/- per square ..... X X X X Extracts X X X X X X X X Extracts X X X X
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