2016 (9) TMI 1217

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....he case and in the law the learned Commissioner of Income Tax Appeal - 26 error treating the business profit of Rs. 70,00,000/- on the sale of TDR, which was generated after purchase of land by the Appellant, as a business income . While there was no cost for TDR. Secondly, it is also completely wrong to say on the part of the learned Commissioner of Income Tax Appeal - 26 that there was no right remaining because the land purchased by the Appellant was said is fully encroached by slum developers the Deputy Collector (ENC) and Competent Authority. Thirdly, it is also completely wrong to say on the part of the learned Commissioner of Income Tax Appeals - 26 that the reserved area there was some surplus land left in the hands of the appellant....

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....r CASS. Notice u/s.143(2) of the Act was issued on 19.08.2010 and served upon the assessee. Thereafter notice u/s.142(1) of the Act dated 25.05.2011 was issued and served upon the assessee. On perusal of the books of accounts, it came into notice that the assessee has given the advance for Transferable Development Right (TDR) for Rs. 50,00,000/- and assessee has also received advance against TDR to the tune of Rs. 1,20,00,000/-. The notice was given to the assessee and the Assessing Officer had arrived at this conclusion that the assessee has purchase the TDR for sum of Rs. 50,00,000/- and sold the same in sum of Rs. 1,20,00,000/-. Therefore, the difference to the tune of Rs. 70,00,000/- was added to the income of the assessee. The assessee....

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....dated 30.04.2007, it is quite clear that the assessee has purchased the TDR, therefore, in view of the said circumstances the income from the sale of TDR is liable to be taxable hence the learned CIT(A) has rightly passed the order which is not require to be interfered with at this appellate stage. By giving the careful thoughts to the contention raised by the learned representative of the parties and perused the record, we found that the assessee purchased certain property / land situated at village Pahadi Village, Goregaon (East), Mumbai bearing CTS No.255 admeasuring approx. 4085.50 sq. mts. or thereabouts more particularly described in the First schedule as large property. The property was acquired by the vendor under Sanad dated 18th A....

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....r as well as purchaser. Moreover, it come into notice that the seller was owner of the said land by virtue of Sanad dated 18th August 1962. The TDR right if any was going to be accrued then the same is going to accrued in favour of the owner. The assessee purchased this said land when no TDR was accrued in favour of earlier owner. Assessee did not purchase TDR right from owner. No doubt factual position of the land was well within the knowledge of the party but this fact cannot be denied that the TDR right on the land first time was accrued in favour of assesse which was sold by the assessee for sum of Rs. 1,20,00,000/-. In view of this peculiar facts and circumstances and in view of the law relied by the learned representative of the asses....