TaxTMI 
TaxTMI 
TaxTMI 
2020 (7) TMI 332
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.... shall take assessee's appeal in ITA NO. 243/Ran/2016 for A.Y. 2009- 10. 3. The Grounds of appeal raised by the assessee are as follows: 1. Assessing officer does not consider sale of land as business income instead of capital gain, he is also not accepted request of assessee for valuation of land, this action is against the natural justice and against the law, so addition made by assessing officer should be deleted. 2. Addition made on account of opening capital balance amounting to Rs. 34, 38,000/- is against the natural justice because assessee produce previous years copy of returns and other relevant documents as a proof of opening capital. So addition made by assessing officer should be deleted. 3. That assessee has sold land fo....
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....ce of Rs. 34,80,000/-. The Assessing Officer noticed that the assessee had shown opening capital account at Rs. 34,80,000/-. When the assessee was asked by the Assessing Officer to explain the bona fide of opening capital, the assessee submitted before the Assessing Officer that the opening capital balance represents the capital which has been accumulated over years as per the return of income filed with the income tax department. However, the Assessing Officer after examination of IT Returns had given finding that assessment year 2008-09 (just before the assessment year under consideration) the capital balance in the balance sheet was shown at Rs. Nil. Therefore, Assessing Officer held that the entire amount of Rs. 34,80,000/- shown in the....
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....and was to convert into small pieces of plots and sale the same in the market therefore the assessee held the said land as a business stock. During the assessment stage, the assessee submitted that the sale of land is a business income instead of short term capital gain (vide PB-13 to 16). We note that the assessee submitted a letter to the ITO dated 21.03.2014 stating as follows: "Assessee purchased land dated 9thMay, 2006 for the purpose of sale of land after plotting of land or lump sum basis for profit, so assessee hold land as a business stock. But by mistake assessee shown short term capital gain instead of profit earned from business. Total profit earned by the assessee through business of sale and purchase of land Rs. 3,94,145/-....
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....aid to carry on business which develops a market- place, and lease out shops, sales plots. We note that in the assessee's case under consideration, the assessee is fulfilling the condition of section 28 of the Act, being a business, therefore, we direct the Assessing Officer to treat the transaction under the head income from business and compute the tax liability accordingly. The assessee is directed to submit necessary details to compute income from business from such transaction. 10. Regarding second issue of addition, we note that the Assessing Officer has given findings in the assessment order that in the balance sheet in the current assessment year, the assessee has shown opening capital of Rs. 34,80,000/-. When the assessee was aske....
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....th law. The assessee is also directed to furnish the copy of balance sheet, profit and loss account and copy of income tax return as required by Assessing Officer. Therefore, for statistical purposes this ground is treated to be allowed. 11. So far, the assessee's third issue is concerned, the Assessing Officer has given a finding in the assessment order that on a verification of bank account of the assessee in State Bank of India (A/c No. 11071927441), it was found that a sum of Rs. 6,00,000/-, Rs. 5,00,000/- and Rs. 4,00,000/- were deposited on 15.09.2008, 29.09.2008 and 16.10.2008 respectively. We note that before us, the assessee has submitted the bank statement copy (vide PB-18 to 20) wherein we note that the fund has been received by....