AI Drafter 
TaxTMI 
TaxTMI 
2017 (4) TMI 180
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....ome from salary and income from house property and was also director of private limited companies which were, inter alia, engaged in the business of real estate i.e. development of township, etc. 3. An information was gathered by the Assessing Officer (for short "AO") that the assessee had sold immovable property, situated at village Basda Alias, Khasra No. 6/1 and 6/4, Govindpura, Tehsil Phagi, District. Jaipur measuring 9 Bigha 4 Biswa to M/s. Grass Field Farms and Resorts Pvt. Ltd. where the assessee is a director. It came to the notice of the Assessing Officer that the said land was purchased by the assessee on March 24, 2007 for Rs. 15,00,000 and sold on September 18, 2008 for a consideration of Rs. 1,39,60,080 and thus the Assessin....
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....ed before the Commissioner of Income- tax (Appeals) (for short, "CIT(A)") reiterating the same facts and bringing to notice of the Commissioner of Income-tax (Appeals) the fact that the entire transaction was duly recorded in the books of account of the limited company. The Commissioner of Income-tax (Appeals) accepted contention of the assessee and deleted the addition holding that the land has been consistently shown in the books of the company M/s. Grass Field Farms and Resorts Pvt. Ltd. in which the assessee was a director and even in the case of company, no finding was given that this land did not belong to the company. 5. A further appeal by the Revenue before the Tribunal, the same also resulted in dismissal. 6. Learned counsel....
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.... in the capacity of director on behalf of M/s. ARG Developers Pvt. Ltd., M/s. ARG Infra Developers Pvt. Ltd. and same transactions were duly reflected in the respective limited companies, however the Assessing Officer accepted the contention of the assessee with reference to the aforesaid two companies namely; ARG Developers Pvt. Ltd. and ARG Infra Developers Pvt. Ltd. but took a u-turn in so far as the company is concerned. It is also apparent on perusal of the orders that the sale deed was executed by the assessee in respect of Khasra No. 6/1 and 6/4 at village Basda Alias for and on behalf of M/s. Grass Field Farms and Resorts Pvt. Ltd. and the said amount was shown as stock in the books of M/s. Grass Field Farms and Resorts Pvt. Ltd. as....
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....rticulars of the land, seller's name, registration number, purchase value, market value and final value and on the basis of this inventory the company surrendered the amount not declared in the books of account. Even this very transaction of land which was made basis of the addition on account of short-term capital gains in the hands of the appellant is reflected in the said inventory and the land was found recorded in closing stock of the said company as on March 31, 2008. The appellate authorities also found as a finding of fact that M/s Grass Field Farms and Resorts Pvt. Ltd. sold this land to M/s. Grass Field Fire Capital Developers Pvt. Ltd. on August 5, 2008 for Rs. 1,51,80,000 and offered profit for taxation as per the return fil....
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....ame sense of the term. The intention of the Legislature in enacting section 32 of the Act would be best fulfilled by allowing deduction in respect of depreciation to the person in whom for the time being vests the dominion over the building and who is entitled to use it in his own right and is using the same for the purposes of his business or profession. Assigning any different meaning would not subserve the legislative intent. To take the case at hand it is the appellant-assessee who having paid part of the price, has been placed in possession of the houses as an owner and is using the buildings for the purpose of its business in its own right. Still the assessee has been denied the benefit of section 32. On the other hand, the Housing Bo....