TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal upholds capital gains assessment for 2004-05, allows land development expenses deductions.</h1> The Tribunal dismissed both the Revenue's and the assessee's appeals, upholding the assessment of capital gains in the assessment year 2004-05 and ... - Issues involved: Appeal filed by assessee and Revenue against CIT(Appeals)-V, Chennai regarding assessment year 2004-05.Details of the judgment:1. Transfer of Property Act Compliance:The assessee, a company engaged in the business of steel manufacture and sale, entered into an agreement for the sale of land with M/s. Vijay Shanthi Builders Ltd. The sale consideration was revised to &8377; 6.1 crores, with an advance of &8377; 50 lakhs received. A compromise was reached in 2003, reducing the sale consideration and agreeing on payment terms. The Assessing Officer held the transfer took place in the assessment year 2004-05. The Tribunal noted that the agreement for sale was not complied with, leading to a criminal complaint. The compromise deed ratified the power of attorney, indicating non-compliance with the Transfer of Property Act. The Tribunal held that the transfer occurred in 2004-05, in line with relevant court decisions.2. Capital Gains Assessment:The Revenue argued that the capital gain was assessable in 2004-05 due to non-compliance with the sale agreement conditions. The Tribunal observed that the compromise deed in 2003 indicated compliance with the contract, leading to the transfer in 2004-05. The Tribunal referred to legal provisions and court decisions to support its conclusion that the capital gains were rightly assessed in 2004-05.3. Land Development Expenses Deduction:The CIT(A) directed deduction for land development expenses debited in the company's books. The Revenue contended that no claim was made by the assessee. The Tribunal noted that if expenses were recorded in the books, the assessee was entitled to claim them along with indexation. The Tribunal upheld the CIT(A)'s decision on allowing deductions for land development expenses.4. Judgment and Dismissal:The Tribunal dismissed both the Revenue's and the assessee's appeals, upholding the assessment of capital gains in 2004-05 and allowing deductions for land development expenses. The order was pronounced on 24/06/2011.
TaxTMI 
TaxTMI 
