2024 (10) TMI 22

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....directions given by the Dispute Resolution Panel (hereinafter in short 'DRP') dated 19.12.2023. 2. The main grievance of the assessee is against action of the AO making an addition of Rs. 8,26,79,878/- in the hands of the assessee. 3. The brief facts are that the assessee is a Non-Resident Individual (NRI) and had filed his return of income (RoI) u/s. 139(1) of the Act on 13.10.2018 declaring taxable income of Rs. 5,63,05,650/-. The RoI of the assessee was selected for scrutiny and assessment order passed u/s. 143(3) of the Act on 09.02.2021 making an addition of Rs. 1,40,623/- being interest income earned during the relevant assessment year. Later, the case was re-opened on the allegation that there were six (6) instances of sales of fla....

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....tion from the developer, wherein, the developer has confirmed that sale proceeds from the disputed transactions regarding '3' flats (F1, E3 & J1) was related to the developer's share and were offered to tax in their hands; and the assessee filed detailed reply dated 20.03.2023, which was rejected by the AO and he passed draft assessment order to add a sum of Rs. 8,26,79,878/- as the consideration received from the sale of '3' apartments [which were allotted to the developer's share under JDA and which was offered as income by the developer in their hands]. 4. Aggrieved, the assessee filed objection before the Ld.DRP, which was rejected on 19.12.2023 and pursuant to the directions of the DRP, the AO passed the final assessment order u/s. 14....

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....nicipal Corporation, Coimbatore, it is shown that there are total of '27' apartments, out of which, eleven (11) flats were earmarked to Owner one (1); one flat each to Owners 2, 3 & 4 [i.e, 3 flats]; & thirteen (13) flats to Developer. Therefore, out of 27 apartments, fourteen (14) flats were for Owners and thirteen (13) flats to Developer, in the ratio of 55% and 45% respectively. And it is noted that the assessee has duly offered the income from sale of UDS (undivided shares of land) relating to the sale of three apartments flagged by the Department. However, the allegation of the AO is that assessee has not offered the income from sale of these three (3) flats during the AY 2018- 19. 7. However, the case of the assessee is that ownershi....

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....t this fact has been confirmed by the AO in his Remand Report dated 07.11.2023, wherein, we note that the AO had called for the financials and books of accounts of the developers (M/s. Foundation One India Pvt. Ltd.), and ascertained that the developer has accounted the sale proceeds in respect of the '3' flats/parties during the AY 2018-19 and has shown the same under the head 'advance from purchases' and the same has been offered as income during AY 2019-20. 9. We further note that the assessee has offered to tax on the 'undivided share of land' totaling Rs. 1,12,68,000/- and that the developer offered as its income from the sale of three (3) flats. Therefore, on the same transaction (of the '3' apartments in question), the Revenue can't....