TaxTMI 
TaxTMI 
2011 (8) TMI 1121
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....T. Act without appreciating the fact that the plots under consideration are capital assets. 3. Briefly stated, the facts of the case are that the assessee is a private limited company engaged in the business of real estate and construction. During the course of assessment proceedings, the Assessing Officer required the assessee to furnish details of sales made with supporting evidence. The Assessing Officer, from perusal of the details of sales made, observed that out of total sales made, the assessee has shown following sales at different sites:- 1. Sale of offices at KAN Chambers Rs.3,25,07,000/- 2. Sale of flats at, woodland apartments Rs.1,04,25,000/- 3. Sale of Shops at Mega Mall Rs.1,57,50,000/- 4. ....
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....ts sold after construction are its stock in trade. However, this cannot be said in respect of the plots sold by the assessee. The Assessing Officer, therefore, observed that the assessee had made sale of plots amounting to Rs. 79,84,200 which did not represent its stock-in-trade but in fact these were the capital assets. He, therefore, invoked provisions of section 50C of the Act. The Assessing Officer observed that the total value of plots sold for the purposes of stamp duty is Rs. 58,37,594. Hence the difference between the value of plots adopted for the purposes of stamp duty and sale value allegedly received amounts to Rs. 8,53,394 which was added to the total income of the assessee under section 50C of the Act. The sale of plot was tre....
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....mpany. Buying and selling land is clearly listed as one of the main objects apart from construction activities. Further a perusal of the balance sheet will show that the land has been shown as stock in trade. The provisions of section 50C are undisputably applicable only for the purposes of section 48 while computation of capital gains. In the instant case the assessee purchased a large plot of land and after leveling etc sold it to various unrelated parties after plots. This constituted an absolutely bonafide business activity. The Ld AO has failed to appreciate the difference between 'capital gains' arising from transfer of a 'capital assets' and 'business profits' arising from sale of stock in tr....
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....eleted. 7. We have heard the rival submissions and have also perused the materials available on record. We are in agreement with the above observations of the ld. CIT(A) that section 50C of the Act would have no application where the transfer of an immovable property is on account of sale of stock-in-trade income of which is computed under the head income from business. There is no material on record to controvert this contention of the assessee that the plots of land sold were held by the assessee-company as stock-in-trade. These details were submitted before the Assessing Officer. The assessee also furnished list of land sold during the year under consideration, inter alia, indicating address and project under which it fell. There is n....
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....e: one is non-maintenance of any log book/stock register which could give a fair idea about the day to day consumption of the diesel used for running the DG sets. The 2nd aspect is a bill of Rs. 4,02,120/- for purchase of 12000 litres of diesel on the last day of the year, ie. on 31/03/2006. In this regard, it has been explained that this bill is actually a compendium of many challans of diesel supply from 21st March to 31st March and for 31st March, the diesel supply was only 1200 litres. Admittedly as the appellant does not maintain any log book/stock book for diesel, it would be difficult to judge as to the quantum average of daily consumption of diesel for running of the DG sets. Under these facts & circumstances, I am of the considered....