2013 (7) TMI 455

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.... and circumstance of the case and in law, the ITAT justified in holding that no capital gain will arise in the concerned assessment year i.e. 2000-01 as the assessee was restrained by Industrial Court as well as this Court from disposing the factory land in question? (b) Whether on the facts and circumstance of the case and in law, the ITAT justified in upholding the findings of the CIT(A) that there was conversion of the land into the stock-in-trade during the Financial Year 1991-92 and therefore the expenditure incurred during Financial Year 1999-2000 was work-in-progress without appreciating that there was no conversion in the Financial Year 1991-92 and there being transfer within the purview u/s. 2(47)(v) of the ITAT during the Finan....

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....he respondent-assessee under the agreement dated 19 November 1999 to M/s. Sheth Developers Ltd. Further no construction activity had commenced during the year under consideration. Thus, the respondent-assessee is not liable to capital gain tax for the assessment year 2000-01. (iv) On appeal by the revenue, the Tribunal upheld the order of the CIT(A) and further held that the amounts received by the respondent-assessee from M/s. Sheth Developers Ltd. was only in the nature of advance subject to settlement of labour and other disputes so as to make the factory land free from encumbrances. If for some reason, the respondent-assessee is unable to fulfill its obligations as above, then it is required to refund the amounts to M/s. Sheth Develo....

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....on the basis that construction activity had started. This is erroneous as the commencement certificate was only received from BMC on 7 November 2000 i.e. in the next assessment year. We find that two authorities viz: CIT(A) and Tribunal have rendered a finding of fact that no transfer of land took place in the concerned assessment year is not shown to be perverse. In this view of the matter, we see no reason to entertain question (a). 4. Regarding Question (b) (i) In the year 1992 itself, the respondent-assessee decided to convert its factory land at Goregaon into stock-in-trade for the purpose of engaging in the business of real estate development. For that purpose, the respondent-assessee inducted on 12 March 1992 three new director....