TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 481
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....ssessee is a company engaged in the business of real estate development. During the financial year 2012-13, assessee received compensation on cancellation of plot at Rajeev Gandhi IT habitat at Goa and while offering the same to tax under the head "Long Term Capital Gain" (LTCG), assessee filed the return of income for the assessment year 2013-14 declaring an income of Rs. 56,41,070/-. By order dated 15/02/2016, under section 143(3) of the Income Tax Act, 1961 (for short "the Act"), learned Assessing Officer accepted the same. 3. Subsequently, by way of notice dated 29/1/2018, the Ld. PCIT, Delhi-7 called upon the assessee as to why an order under section 263 of the Act be not passed to set right the under assessment of the income of the a....
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....TES companies only for a limited period of time, initially 30 years, for which the assessee will pay the rent to the lessor; that in case of lease transaction, the ownership of an asset is determined by the terms of agreement between the lessor and lessee; that in terms of the lease agreement in the instant case the lessor had provided only a right to use the asset to the lessee during the period of lease, thereby retaining the rights of ownership; that under clause 6(o) assessee was never allowed to part with any proportionate land; and therefore, the treatment given by the assessee that the property in question was capital asset of the assessee and the acceptance thereof by the learned Assessing Officer was not correct. 6. On this premis....
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....issue as to whether the income has to be assessed under the head "capital gains" was considered in the original assessment and, therefore, the view taken by the learned Assessing Officer was a plausible view and thus there was no error in the order of the learned Assessing Officer to be revised under section 263 of the Act. 8. Per contra, Ld. DR places reliance on the order passed under section 263 of the Act and submits that inasmuch as the title in the property had not been passed to the assessee, it cannot be said that on the extinguishment of the rights of lease, the assessee receives compensation for transfer of a capital asset. 9. We have gone through the record in the light of the submissions made on either side. It remains an undi....
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.... property thereby making it one of the premises, assessee was granted only use of premises for constructing the floor space to be allotted to IT software/ITES companies only for a period of time, initially 30 years, for which the assessee will pay the rent to the lessor and so long as the ownership has not been transferred the treatment given by the assessee that the property in question was capital asset of the assessee and offering the proceeds therefor under the had capital gains is not acceptable. 11. Such a question is, however, is no longer res integra and has been dealt with by the various benches of this Tribunal in the cases relied upon by the assessee and referred to supra. In the case of Butterfly Marketing Private Limited (supr....
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.... 13. Even in the worst-case, what follows from the discussion in the preceding paragraphs is that it is one of the plausible views possible to be taken in this matter, and by taking a view the learned Assessing Officer cannot be said to have committed any error. It could be seen from the record that in the assessment order the assessing officer had stated that the details filed in respect of various items called for and were examined before accepting the returned income of the assessee. At page No. 3 of the paper book we find the computation of income wherein there is a reference to the long term capital gains claimed by the assessee in respect of the leasehold rights of the plot at Goa. Further to the notice dated 27/7/2015 issued under s....