2017 (9) TMI 117

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....elating for the purpose of this appeal are that according to the assessee there were two partners in the company i.e. one Anil Jain and one K.N. Shukla. They were developing a project at Amritsar on which about 70 crores were spent till March, 2007. However, there arose certain business dispute resulting in some arbitration proceedings and consequent settlement resulting in division of the assets of the company by way of settlement deed dated 26.04.2007, under which the Amritsar project had fallen to the share of Mr. K.N. Shukla. Assessee's contention has been that since Mr. K.N. Shukla used the clauses of the settlement deed to his advantage, in a dispute the Amritsar Court passed an order dated 11.02.2009 and when the matter was carried t....

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....s in confirming the action of Ld. AO in framing the impugned assessment order and that too without assuming jurisdiction as per law, more so in terms of Section 143(2). 2. That having regard to the facts and circumstances of the case, the Ld. CIT (A) has erred in law and on facts in confirming the action of Ld. AO in making aggregate disallowance of Rs. 64,72,52,645/- on account of expenses shown under the head "other expenses (Administrative Expenses) as loss on Amritsar project written off" and that too by recording incorrect facts and findings and in violation of principles of nature justice. 3. That in any case and in any view of the matter, action of Ld. CIT (A) in confirming the action of Ld. AO in making aggregate d....

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.... Amritsar and order dated 14.07.2011 by the Hon'ble Punjab & Haryana High Court in civil revision no. 3081/2009, and finally a compromise before the Additional District Court on 17.8.2012 as such, the assessee concluded that the cost/expenses incurred on the Amritsar project have become irrecoverable only during the AY 2012-13, and they written them off in their books of account in that that year only. Basing on this he submits that the loss was crystallized only in the AY 2012-13, as such, the same had to be allowed as expenditure. Further he submits that in a real estate project the stock-in-trade is the immovable property, as such, the profit or loss which is otherwise capital in nature would be Revenue in this peculiar business. 7. P....

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....ween Mr. Anil Jain and Mr. K.N. Shukla. Subsequent litigation on this aspect at the instance of the assessee was put to rest by the Hon'ble Punjab & Haryana High Court in civil revision no. 308/2009 by way of order dated 14.07.2009. As a matter of fact, the order of the Hon'ble High Court only confirmed the state of affairs evidenced by the settlement deed dated 26.04.2007 and it does not appear from the record that anything new that had happened either by way of voluntary agreement between parties or by any Court of competent jurisdiction impacting or altering the rights, liabilities or disabilities of the parties crystallized under the settlement deed dated 26.04.2007. Even the alleged compromise on 17.08.2012 reached by the parties befor....