2017 (7) TMI 1308

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....x (Appeals)-3, Coimbatore, in ITA No.191/16-17 dated 18.11.2016 for the AY 2012-13 & ITA No.344/Mds/2017 is an appeal filed by the Revenue against the Order of Commissioner of Income Tax (Appeals)-3, Coimbatore, in ITA No.192/16- 17 dated 18.11.2016 for the AY 2013-14 and CO No.44/Mds/2017 is a Cross-Objection filed by the assessee in ITA No.343/Mds/2017 for the AY 2012-13 & CO No.45/Mds/2017 is a Cross-Objection filed by the assessee in ITA No.344/Mds/2017 for the AY 2013-14. 2. Smt. R. Rajeswari, JCIT, represented on behalf of the Revenue and Shri S.Sridhar, Adv., represented on behalf of the assessee. 3. As the issues in both the appeals are identical and relating to the same assessee, for the sake of convenience, the same are heard ....

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....5 Cr. It was a further submission that similarly Rs. 2.74 Cr. each was paid to Mr.K.Rajesh and Smt.Srivalli, the outgoing shareholder so as to get the title clear. It was a submission that subsequently the assessee had incurred nearly Rs. 8.50 Cr for bringing, the said land developed and ready for sale. It was submitted by the Ld.DR that as the lands were always properties of the assessee company and the payment to Smt.P.Thillaikarasi, could not be allowed as cost of improvement as the payment was made by M/s.GCIPL. It was a further submission that similarly in respect of the other expenses incurred in respect of the said 33.64 acres of land. It was a submission that the Ld.CIT(A) had allowed the expenditure claimed to be treated as the cos....

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.... in the hands of the assessee. It was a submission that what had actually happened was that M/s.GCIPL had by taking over the assessee company had acquired 33.64 acres of land. The land continued to be held in the name of the assessee company but the title deed of the said land had been so widely encumbered that the same could be rectified and recovered only by incurring substantial expenses which the new shareholders had to incur. It was a submission that the assessee company under the management of the new shareholders are selling the said land in piecemeal after development and now offering the profit to tax also. It was a submission that without incurring these expenditures, the assessee would never have had a clear title in respect of t....