TaxTMI 
TaxTMI 
2015 (8) TMI 1285
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.... main source of income is his salary from Bhagawan Mahaveer Jain Hospital as well as from Profession as a Doctor. He filed his return of income for the assessment years 2000-2003. While filing the return, he filed a note along with the return, which reads as under: "The assessee purchased agricultural lands of about 8 acres from K.Gundu Rao in the year 1996 and 1997. Subsequently, he proposed to develop the same by having it converted for residential layout. He decided to form a layout along with his father Sri.C.V.L.Sastry and had agreed to do the same for HMT Employees Co-Operative House Building Society Ltd. On 12-07-1999. M/s. HMT Employees Co-Operative House Building Society Ltd., wanted a layout spread over 50 acres 36 guntas land to be formed over a period of time. For various reasons this project did not go through and had to be abandoned. In the meanwhile an advance of Rs. 82 lakhs was received from M/s.HMT Employees Co-Operative House Building Society Ltd., and the same was used for layout development. The assessee subsequently, entered into an agreement with one Sri.S.N.Krishnaiah Setty on 05-09-2001 for sale of residential sites @ rate of 110 p.sq.ft. The as....
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....ayout. However, no document has been produced to show that he has spent Rs. 78,00,000/- for formation of the layout. During search, some materials were found, which reveals that the assessee had spent a sum of Rs. 14,92,705/- on 26-12-2002 and a sum of Rs. 11,69,628/- was spent by M/s. Sky Top Builders Pvt. Ltd. for improvement of the said property. In all, they have spent Rs. 26,62,33 3/-. The cost of the land comes to Rs. 73,08,993/-, whereas the assessee had entered into an agreement with S.N.Krishnaiah Setty agreeing to sell the sites at the rate of Rs. 110/- per sq.ft. and power of attorney was also executed in favour of S.N.Krishnaiah Setty for marketing the sites through Shri. Balaji Krupa Enterprises. Krishnaiah Setty had sold 86 sites from 01-04-2001 to 31-3-2002 and 53 sites from 01-04-200 2 to 31-3-2003. Taking into consideration the extent of land as 8 acres; value of the land at the rate of R s.110/- per Sq.ft. deducting expenditure towards CMC and KEB and development expenditure of Rs. 97,49,994/-, from the total value of the land, the balance amount of Rs. 1,27,51,055/- was net receivable by the assessee . Out of the said amount, the profit of the assessee is worked ....
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....ssessee as well as the Revenue preferred appeals before the Tribunal. The Appellate Tribunal after re-examining the matter and taking into consideration the material seized during the course of search and also accepting some of the findings of the Assessing Authority held that the assessee has not suppressed any facts in the return filed for the assessment year 2002-03. He has disclosed everything regarding purchase of the property in the year 1996-97 and also entering into an agreement with HMT Employees Co-operative House Building Society Limited and subsequently with S.N.Krishnaiah Setty on 5-9-2001 for sale of residential sites at the rate of Rs. 110/- per sq.ft. The seized materials clearly disclose that the assessee has spent Rs. 26,62,333/- for formation of the layout. Further, the agreement entered into with S.N.Krishanaiah Setty was only in respect of 6 acres of land and the Department itself has accepted the net profit at 8% on the turnover from the Real Estate business. Accordingly, upheld the order passed by the First Appellate Authority and dismissed both the appeals filed by the assessee as well as the revenue by its order dated 30th April, 2009. Being aggrieved by th....
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.... purchased 8 acres of agricultural land in the year 1996-97 for Rs. 46,46,600/-. Subsequently, he proposed to develop the said land and form a residential layout along with his father and brother. He invested a sum of Rs. 78,00,000/- consequent to buying of the property towards improvement charges, however, no document has been produced in this regard. It was found from the seized material that a sum of Rs. 26,62,333/- has been spent towards improvement of the layout. In view of the agreement entered into with S.N. Krishnaiah Setty on 5-9-2001 to sell the sites for Rs. 110/- per sq.ft., considering the value of the sites as Rs. 2,25,01,050/-, deducting expenditure, the assessing officer determined the undisclosed income in a sum of Rs. 42,17,430/- and called upon the assessee to pay tax on the said amount with fine and interest. 9. On an appeal filed by the assessee, the First Appellate Authority after examining the matter in detail found that purchase of the land has already been disclosed to the Assessing Authority along with the return for the assessment year 2002-03 and also admitted that the residential layout is not fit for residential use, pending completion, and the asse....