TaxTMI 
TaxTMI 
2018 (2) TMI 308
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....deration: "(a) Whether on the facts and in the circumstance of the case and in law, the Tribunal was correct in holding that income in respect of sale of flats accrued when possession of the flat was given and not when allotment letter was issued?" 3. The Respondent carries on business as a contractor and developer. During the scrutiny proceedings for the subject Assessment Year, the Assessing Officer found that an amount of Rs. 2.43 Crores was shown under the head current liabilities i.e. as advances received from it buyers as under:- Sr.No. Name of Buyer Advance Received 1 M/s.Siddhi Vinayak Securities Pvt. Ltd. Rs.1.23 Crores 2 M/s. Radhika S.Gaekad Rs. 10 lakhs 3 M/s. Manomay Estates Pvt. Ltd....
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.... that it was not the case of the Revenue that the possession letter dated 1 April 2007 was not genuine. Nor has the Revenue brought on record any evidence to show that the possession was given to M/s. Siddhi Vinayak Securities (P.) Ltd. and M/s. Manomay Estates (P.) Ltd. prior to 1 April 2007. In the above view the addition of Rs. 2.14 Crores made by the Assessing Officer and upheld by the CIT (Appeals) was deleted. Moreover the impugned order of the Tribunal also records the fact that in the next Assessment Year, the Respondent has offered the income of Rs. 2.14 Crores on the sale of the flats to M/s. Siddhi Vinayak Securities Pvt. Ltd. and M/s. Manomay Estates Pvt. Ltd. to tax. The same has also been accepted by the Revenue as taxable inc....
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....on of Rs. 1,23,75,000/- (One crore twenty three lac seventy five thousand only) to us as under: i) Rs. 1,19,75,000/- (Rs. One Crore Nineteen lacks Seventy Five Thousand only) as earnest money on or before issue of this Letter of Allotment. ii) Rs. 4,00,000/- (Rs. Four lakhs only) or or before handing over of the possession. Total : Rs. 1,23,75,000/-. We further confirm and acknowledge the receipt of Earnest Money of Rs. 1,19,75,000/- (Rupees Nineteen Lacs Seventy Five Thousand Only) paid to us on 15 March 2007. Clause 11: Subject to your making the said balance payment of Rs. 4,00,000/- (Rupees Four lacs only) to us, as aforesaid, a deed of sale / conveyance document for transferring all our righ....
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....orne by the buyers after the possession of the two flats are handed over to buyers. It does not even remotely suggest that the responsibilities for payment of charges in respect of the said flat was on the buyer from the date of the allotment. This coupled with the fact that the Tribunal records as a matter of fact that there is no dispute about the genuineness of the letter of possession dated 1 April 2007. Moreover, no statement of the buyers or other evidence, even circumstantial in nature, was brought on record to indicate that the facts are different from what has been recorded in the possession letter dated 1 April 2007. In the aforesaid facts, the view taken by the Tribunal on the self evident terms of allotment and possession letter....
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....ars ago, the Bombay High Court, speaking through Chief Justice Tendolkar in Commissioner of Income Tax, Delhi, Ajmer, Rajasthan and Madhya Pradesh Vs. Nagri Mills Co. Ltd. (1958) 33 ITR 681 observed as follows:- "We have often wondered why the Income tax authorities, in a manner such as this where the deduction is obviously a permissible deduction under the Income tax Act, raise disputes as to the year in which the deduction should be allowed. The question as to the year in which a deduction is allowable may be material when the rate of tax chargeable on the assessee in two different years is different; but in the case of income of a company, tax is attracted at a uniform rate and whether the deduction in respect of bonus was grant....