TaxTMI 
TaxTMI 
2021 (8) TMI 1140
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....d directed the ITAT to consider the substantial question of law afresh. 2. The brief facts of the case are as follow: The A.O. during the course of assessment proceedings, noticed that the Auditor had pointed out understatement of income to the tune of Rs. 5.81 crore by the assessee. It was submitted before the A.O. that the observation of the audit report is basically in respect of lease transaction and the lease transaction has not been accounted as they were not sale transaction. The contention of the assessee that the lease deposits collected was disclosed as receipts over the period of lease, was rejected by the A.O. The A.O. after giving benefit of cost and other development expenditure of land, arrived at a figure of Rs. 1.74 c....
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.... the allottee. Only when a conveyance deed is executed on payment of unearned premium the allottee gets absolute legal title of ownership of the land. The lease transaction does not give an absolute ownership or title as it can be cancelled and reentered. Further the assessee has been consistently following the accounting policy of recognizing the lease rental proportionate to the lease period and therefore the consistent accounting method followed by the assessee for a consideration long time cannot be disturbed when there is nothing on record to suggest that the accounting method followed by the assessee resulted avoidance of tax. Accordingly, we set aside the orders of the authorities below qua this issue and delete the additions made by....
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....l is unregistered. However, the same has not been taken into consideration by the Tribunal. Therefore, the matter needs to be remitted to the Tribunal to consider the substantial question of law involved in this appeal afresh. 3. To the aforesaid extent, the order passed by the Tribunal is hereby quashed. The matter is remitted to the Tribunal to consider the substantial question of law involved in this appeal afresh, in accordance with law. It is made clear that all the contentions are kept open to be raised by both the parties." 4. Subsequent to the restoration of the case by the Hon'ble High Court, the matter was heard by the ITAT on 25.03.2021. The learned AR relied on the judgment of the Hon'ble Kerala High Court i....
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....strument in question was an unregistered one purporting to create a lease for 5 years and, therefore, compulsorily registrable. Although the Supreme Court held that the instrument as such could not be looked into for holding that the execute thereunder was a lessee, it was observed as follows:- "When lease is a transfer of a right to enjoy the property and such transaction can be made expressly or by implication, the mere fact that an unregistered instrument came into existence would not stand in the way of the court to determine whether there was in fact a lease otherwise than through such deed." " 6.1 In the instant case, the assessee is a statutory body constituted u/s 5 of Karnataka Industrial Areas Development (IIADB Act), ....