2015 (5) TMI 905

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....T  (Appeals). Both the appeal and C.O. being heard together are disposed off by way of this order. 2. The facts of the case, briefly, are as under :- 2.1 The assessee, an individual engaged in the business of land development and works contract, filed his return of income for Assessment Year 2008-09 on 14.11.2009 declaring income of Rs. 28,91,040. The income returned related to the profit from sale of land measuring 2.81 acres at Kodialbail village, (Bejai Automatrix Land) at Mangalore for a declared consideration of Rs. 3,55,65,000 which was received over three financial years ending with the year under consideration. After claiming expenditure of Rs. 3,22,03,455 in connection with the sale and administrative expenses, the asses....

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....18,880 in the order of assessment for Assessment Year 2008-09. 2.3 Aggrieved by the order of assessment for Assessment Year 2008-09 dt.24.12.2010, the assessee preferred an appeal before the CIT (Appeals) - VI, Bangalore. The learned CIT(A) disposed off the assessee's appeal vide order dt.23.8.2012 allowing the assessee partial relief. While disposing off the appeal, the learned CIT(A) has recorded a finding that the income from the land transaction at Kodialbail, Mangalore has to be assessed for Assessment Year 2008-09 and that the assessee had returned the income therefrom in his return of income. In that view of the matter, the learned CIT(A) deleted the addition of Rs. 1 Crore made by the Assessing Officer in the order of assessm....

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.... 4.1 The assessee has also filed Cross Objections in respect of the impugned order of the CIT (Appeals) for Assessment Year 2008-09 which are as under :- "1. The orders of the authorities below in so far as they are against the Crossobjector/ respondent are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The learned CIT (Appeals) is not justified in directing the learned Assessing Officer to make a disallowance of Rs. 1,84,50,000 in terms of section 40A(3) of the Act under the facts and in the circumstances of the cross-objector's case. 3. For the above and other grounds that may be urged at the time of hearing of the cross-objection, your respondent / cross-objector humbly prays ....

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....itional grounds raised, and are of the view that the additional grounds raised are purely legal grounds and ought to be admitted in the interest of equity and justice and accordingly admit the same. 5.2 It is seen from the record that the total receipts of the assessee from the sale of land at Kodialbail, Mangalore are spread over three different financial years and the total receipts are Rs. 3,55,65,000 which has been shown in the return of income filed on 14.11.2009. In the said return of income, the assessee had computed his income from the sale of land at Rs. 28,91,040 which is at page 6 of the impugned order of the learned CIT(A) and is extracted hereunder :- 1. Total Receipts Rupees   A.Y. 2006-07 2,05,65,000....

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....ficer adopted the income as declared in this return of income in the order of assessment. It appears to us that both the Assessing Officer as well as the learned CIT(A), who held that the income from the transaction of the Kodialbail land requires to be computed considering the same as business income are correct as even before us there is no claim that the income requires to be assessed as Capital Gains. In the factual matrix, we find that the assessee's business is that of purchase and sale of land and therefore the income is assessable under the head business only. 5.4 In respect of the original return of income for Assessment Year 2008-09 filed on 14.11.2009 declaring income of Rs. 28,91,040 and the return filed on 29.6.2010 in r....