TMI Blog2019 (12) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... of the audited accounts. All these Board Resolutions are available and audited financials are available - CIT (A) was required to get the Board Resolutions examined in the light of the audited financials and the other circumstantial evidence during appellate proceedings but he has dismissed this argument of the assessee by merely recording the findings that no third party evidence has been brought on record by the assessee. All these facts go to prove that the issue is required to be examined afresh by the AO in the light of the Board Resolutions and audited financials of the company and the evidence available on record by providing adequate opportunity of being heard to the assessee. Consequently, impugned order passed by the ld. CIT (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the CIT(A) is illegal being against the principles of natural justice and against the provisions of the Act. Ground No.2: The CIT(A) has erred on facts and circumstances of the case in confirming the addition made by the Assessing Officer (herein after referred to as AO ) amounting to ₹ 5,30,38,150 on account of alleged gain arising out of the sale of land without appreciating the facts in proper perspective especially the fact that the land sold out was part of integrated project and the sale consideration amounted to recoveries from the project. The total income confirmed at ₹ 5,30,91,542 is only on surmises conjectures and should be deleted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d at Behrampur, Gurgaon Subsequently exchanged in lieu of land at Village Tigra, Maidawas, Gurgaon 735.61 477.84 Construction cost incurred at commercial complex at Jaipur 751.65 3,223.66 Less : Sale consideration for land at Ullawas at Gurgaon 1,266.00 Total 1,957.34 4. Finding the details given by the assessee as to its integrated project as not sustainable on facts and law, Assessing Officer (AO) disallowed adjustment of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ps in Jaipur project. The issue before the AO to be decided was, as to whether the project at Gurgaon is an extension of Metropolitan project at Jaipur and this question was decided by the AO in negative and taxed the profits of the sale of land whereas the assessee has reduced the sale consideration of land from work-inprogress and has not offered the profits for taxation. 9. When we examine the contention raised by the ld. AR for the assessee that the evidence brought on record by the assessee that Jumera Residential Block at Gurgaon was part of the integrated project has not been appreciated by the AO as well as ld. CIT (A) particularly the findings returned by the ld. CIT (A) in the impugned order on the issue in quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce has been brought on record by the assessee. All these facts go to prove that the issue is required to be examined afresh by the AO in the light of the Board Resolutions and audited financials of the company and the evidence available on record by providing adequate opportunity of being heard to the assessee. Consequently, impugned order passed by the ld. CIT (A) is set aside and the file is remanded back to the AO to decide afresh after providing adequate opportunity of being heard to the assessee. ITA No.5710/Del./2013 12. Since initiation of penalty u/s 271(1)(c) of the Act is in consequence to the impugned order passed by the ld. CIT (A) now set aside, the penalty appeal u/s 271(1)(c) is also set a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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