TaxTMI 
TaxTMI 
2019 (1) TMI 789
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....er by the AO u/s 143(3) of the 1961 Act. 2. The grounds of appeal raised by the assessee in the memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called "the tribunal') read as under:- "1. On the facts and in the circumstances of the case and in law, the order passed u/s. 263 of the Income Tax Act, 1961 is invalid and bad in law. 2. On the facts and in the circumstances of the case and in law, learned C.I.T. erred in passing an order u/s. 263 of the I.T. Act, 1961 and that too without appreciating fully and properly the facts of the case. 3. On the facts and in the circumstances of the case and in law, the learned C.I.T. erred in holding that the order passed by the ITO 22(3)(3) is erroneous and prejudicial to the interest of revenue although the same was neither erroneous nor prejudicial to the interest of revenue. 4. On the facts and in the circumstances of the case and in law, learned C.I.T. erred in passing an order u/s. 263 of the I.T. Act, 1961 and that too without considering the written submission and objection raised by the Appellants and referring to the supporting case laws supporting the objections of....
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....sessee along with her relatives held ownership rights in the said property. It was observed by ld. Pr. CIT that the said development agreement is between three co-owners namely Shri Gautam U Divadkar, Mrs. Shilpa Ajay Varade(the assessee) and Mrs. Sharmila Vinay Telenge with "M/s. Honest Infra' (Hereinafter called "the Developers') wherein these three co-owners who are relatives entered into registered development agreement dated 31.12.2012 with the said developer and at page no. 8 para 3B of the said registered development agreement, the assessee was to get consideration from the developer of Rs. 40 lacs on monetary terms as well four residential flats on ownership basis free of cost and six car parking's free of cost. The ld. Pr. CIT observed that the detail/description of the said four residential flats ( Flat No. 701, 702, 1001 and 601) are given in the said registered development agreement entered into by the assessee along with other co-owners with "Honest Infra'. The said development agreement was registered with Sub-Registrar Kalyan on 10.01.2013 and as per index-II, the consideration was shown as Rs. 3,13,75,216/- on which stamp duty was paid and the same was distributed b....
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....he 1961 Act wherein the assessment order dated 20-10-2015 passed by the AO u/s 143(3) was set aside by learned Pr. CIT with aforesaid directions. 5. Aggrieved by the order dated 12-03-2018 passed by learned Pr. CIT u/s 263 of the 1961 Act, the assessee filed an appeal with the tribunal. Ld. Counsel for the assessee vehemently submitted that several written replies were furnished during the course of assessment proceedings conducted by the AO u/s. 143(3) r.w.s. 143(2) in response to the queries raised by the AO, which culminated into an assessment order dated 20.10.2015 passed u/s. 143(3) wherein assessee claim of computation of long term capital gain was accepted by the AO. Our attention was drawn to page 31 of paper book wherein all details related to this development agreement was submitted which included valuation report, development agreement, copies of bonds for claiming deduction u/s 54EC for investments made in the bonds, working of capital gains etc.. The assessee has filed paper book containing 159 pages which, interalia,contained copy of development agreement, copies of replies filed before the AO and copies of submissions made before learned Pr. CIT. The said paper bo....
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....It was submitted by learned DR that claim of deduction u/s 54F was made with respect to the flats which are not yet constructed which is not permissible. It was submitted that even construction of the building by the developer did not started till the end of the previous year as these are future properties to be constructed and no deduction u/s 54F can be allowed. 7. We have considered rival contentions and perused the material on record including case laws cited by the rival parties. We have observed that the assessee is in the business of providing consultancy services. The assessee is co-owner of property along with her brother and sister, of land bearing number CTS 2878A ( earlier CTS 2878, 2879, 2880, 2881, 2882 and 2911) totally admeasuring 4960 square meters along with two structures standing thereon named as "Sadashiv Niwas' and "New Divadkar Building' consisting of ground+ two upper floor and ground+one upper floor at Shivaji Chowk, Agra Road, Kalyan within limits of Kalyan-Dombivili Municipal Limits. The assessee along with other co-owners entered into an registered agreement dated 31.12.2012 with M/s. Honest Infra ( hereinafter called "Developers'), for development of....
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....tion u/s 54F of the value of the two new residential flats bearing number 701 and 702 within provisions of Section 54F of the 1961 Act on the grounds that the said flats are not even being constructed by the developer "Honest Infra' and they are future properties, thus the assessee is not entitled for deduction u/s 54F. The assessee has also claimed deduction of Rs. 71,50,000/- on account of investments made in NHAI bonds which were otherwise eligible for deduction u/s 54EC of the 1961 Act. The assessee invested Rs. 50,00,000/- on 14.03.2013, Rs. 18,50,000/- on 11.06.2013 and Rs. 3,00,000/- on 26.06.2013 in NHAI bonds which were eligible for deduction u/s 54EC. The evidences are placed in paper book/page 100-105 filed with tribunal to support contentions that in aggregate Rs. 71,50,000/- was invested in NHAI Bonds which were otherwise eligible for deduction u/s 54EC of the 1961 Act. The said investment was made within six month from the date of transfer and was made in two successive financial year, firstly in the previous year relevant to the year when the transfer took place i.e. Rs. 50,00,000/- while the balance Rs. 21,50,000/- was invested in immediately succeeding year. ....
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....onetary compensation and also to get four new residential flats in consideration under the said development agreement from the developer "Honest Infra' as her share of consideration under development agreement dated 31.12.2012. The four new residential flats bearing numbers 701, 702, 1001 and 601 in the building are to be constructed on said property by the developer, thus, what the assessee is to get from developers are yet to be built new residential flats bearing flat no. 701, 702, 1001 and 601 in the building proposed to be constructed by "Honest Infra' under the said registered development agreement dated 31.12.2012, these flats were allotted specifically by the developer in favour of the assessee under development agreement which entitled assessee to sell, dispose of or even create charge on these flats. Thus, effectively it could be said that the share of consideration in lieu of property for development given by the assessee to the developer, to the extent of these four residential flats is retained by the builder which will be invested by the developer by utilising its own funds for constructing these flats on behalf of the assessee. This effectively means that considerati....