2021 (3) TMI 529

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....e above appeal. 2.1 The assessee is a company engaged in the business of builders and promoters of residential flats.. The assessee filed its return of income for the assessment year 2007-08 admitting total income of Rs. 7,70,49,470/-. The Assessing Officer determined the total income of Rs. 19,68,09,740/- in the assessment order passed under section 143(3) of the Act. The taxable income has been determined by the assessing authority at a higher level by making additions on account of short term capital gains. 2.2 The assessee company had promoted a residential project about 45 kms. away from Chennai on Old Mahabalipuram Road. The assessee had identified about 25 acres of land to set up the project. The task of identifying and purchas....

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....l these figures while computing the short term capital gains as explained by the assessee. The Assessing Officer accepted the guideline value of Rs. 1,38,82,000/- as the cost of acquisition the assessee. He disallowed the amount paid by the assessee in addition to the document value amount of Rs. 1,86,61,000/- and also disallowed the compensation of Rs. 1,15,95,500/- paid by the assessee to vacate the unauthorized occupants. The Assessing Officer also declined to give deduction for Rs. 9.79 crores, directly paid by M/s. MPC to the three parties for acquiring 2.96 acres of land and adopted the entire sum of Rs. 21,27,31,250/- as sale consideration. In these circumstances, the Assessing Officer determined the short term capital gain at Rs. 16....

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....the appeal is taken up for hearing, Mr. M.Swaminathan, learned Senior Standing Counsel appearing for the appellant fairly submitted that the 2nd question of law raised in the above appeal is covered by the decisions of the Hon'ble Division Bench of this court reported in 2012(122) Taxmann.com 284(Madras) [Commissioner of Income Tax, Chennai v. Voltech Projects (P) Ltd.] wherein the Division Bench of this Court held as follows:- " ... 5. The short order passed by the co-ordinate Bench is quoted below for ready reference:- " The respondent-assessee is engaged in contract business and in the memo of income, it had claimed deduction of the amounts retained by its clients as per the contracts. According to the asse....

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....9463 of 2006 dated 12.12.2006 (Commissioner of Income Tax v. East Coast Constructions & Order dt 30.7.2020 in TCA 693 of 2019 CIT v . Voltech Projects Pvt. Ltd.Industries Limited), no question of law arises for consideration. Accordingly, the tax case appeal is dismissed." 6. The contraversy involved in the present appeal is covered by the said judgment. Respectfully following the said view of the coordinate Bench, we dismiss the present appeal of the Department and answer the questions in favour of the assessee and against the Revenue. No order to costs." 5. So far as the 1st question of law is concerned, on a careful consideration of the materials available on record, it could be seen that the revenue has not specific....