2017 (2) TMI 495

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.... fee, external development charges and conversion charges, in the circumstances of the case?" 2. The facts of the case are that M/s. Unitech Business Parks Pvt. Ltd. (hereinafter referred to as the "UBPL") purchased 3.39 acres of land on 31.08.2004 from M/s. Unitech Ltd., M/s. Pioneer Profin Ltd. and M/s. Sarda Plywood Industries Ltd., the "original allottees". On 30.03.2006, UBPL entered into an Agreement to Sell (ATS) with M/s. Unitech Developers & Hotels Pvt. Ltd. (hereinafter referred to as the "UDHPL") for sale of the said land and it was agreed that all the approvals for construction shall be obtained by the purchaser. However, since the purchaser was unable to pay the monies, it sought cancellation of the ATS. 3. By a Memorandum of Understanding (hereinafter referred to as the "MoU") executed between UBPL and UDHPL and the Unitech Hospitality Services Limited - the appellant on 01.04.2007, the ATS dated 30.03.2006 was treated as cancelled and the said land was agreed to be sold to the appellant. It was also agreed that all expenses incurred on development shall be borne by the appellant. 4. Meanwhile, on 05.10.2006 and 06.12.2006, although the original allottees had all r....

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....ssessee and Unitech business parks ltd. This sale deed dated 25.03.2008 which is filed in the PB 89-91. According to that sale deed the total consideration for 3.398 acre of land was Rs. 716 lacs and stamp duty paid of Rs. 4296,000/-. On reading of the sale deed we could not find any reference of the amount of license fees etc to be paid to the owner or to the other party. The terms and conditions of the sale deed are as under:- "1. That in lieu of payment of aggregate consideration of Rs. 7,16,00,000/- (Rupees Seven Crore Sixteen Lac Only), the VENDOR doth hereby sell, transfer, convey and assign all its rights, title and interest in the land admeasuring 3.398 acres situated in Block-B at Greenwoods City, Gurgaon, Haryana, unto the VENDEE together with all its rights, liberties, privileges, liens, easements, advantages, passages, pathways, permission grants whatsoever attached or annexed to the said land. 2. That the VENDEE has paid the aforesaid total consideration of Rs. 7,16,00,000/ -(Rupees Seven Crore Sixteen Lac Only) vide cheque No.856317 dated 25.03.2008 drawn on Canara Bank, Nehru Place, New Delhi to the VENDOR, the receipt whereof the VENDOR hereby admits and acknowled....

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....K. Builders and contractors Pvt. Ltd. Vs. CIT reported in 318 ITR 204. At the first instances the argument looks attractive but on examination of the facts before the Supreme Court and the facts of the case of the assessee, this argument deserves to be dismissed. Fact before the Supreme Court in case cited before us is quite different. The Hon'ble Supreme Court has held that according to the principle of accountancy that the figure of the closing stock of the earlier years does form the opening stock of the next year and it cannot be questioned in the subsequent year. Off course, there cannot be any question on acceptance of this accounting principle. However, Hon'ble Supreme Court was not concerned the issue like in the case of the assessee where the cost debited itself cannot be considered as the cost of the land unsupported by evidences in the form of conveyance deed and MOU executed by the buyer and seller. Therefore reliance by AR on the decision of Honorable Supreme Court is misplaced as it does not apply to the facts of the case of assessee. On probing amount of the work in progress the AO has come to know that these expenses have not all been incurred by the assesse....

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....3.2006 between the UBPL and UDHPL records the transfer of the said plot of land admeasuring 3.39 acres for a consideration of Rs. 6.75 crores of which an amount of Rs. 10,00,000/- was acknowledged to have been received by the Vendor and the balance of Rs. 6,65,00,000/- was to be paid by 30.04.2006. The ATS further recorded:- "(6) All costs, charges and expenses payable on or in respect of this agreement and on all other instruments and deeds to be executed, if any, pursuant to this agreement, including stamp duty and the registration charges of the Sale Deed, shall be borne and paid solely by the Vendee. (7) That all rates, taxed, levies, etc. in respect of the said Plot of Land upto the date of registration of Conveyance Deed shall be paid by the Company and thereafter such rates, taxes and charges shall be paid by the Vendee." 9. The MoU dated 01.04.2007, recorded that UBPL had purchased the land by Registered Conveyance Deed dated 31.08.2004; the land was meant for development of a commercial complex. The ATS between UBPL and UDHPL for a sale consideration of Rs. 6.75 crores was required to be concluded by a Sale Deed by 30.04.2006. This time was extended to 31.03.2007, but e....