TaxTMI 
TaxTMI 
2025 (11) TMI 1410
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....he house property income amounting to Rs.2,88,06,379/- has been treated as business income thereby, confirming the disallowance of 30% of the standard deduction claimed by the assessee amounting to Rs.83,38,635/-. 2.1. The facts in brief are that the ld. AO observed during the course of assessment proceedings, that the assessee has received lease rental charges from various parties for occupying the area within the warehousing complex situated at 147 Nilgung Road, Belghoria, Kolkata-700057, to the extent of Rs.2,58,44,582/- and further lease rent fees, Road Development and Security charges to the extent of Rs.58,11,050/- aggregating to Rs.3,16,55,642/-. The ld. AR also noted that assessee paid lease rental of Rs.28,49,260/- to Dalmia Jai....
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....ssessing officer noted from the Deed that Forum Riviera Constructions Pvt Ltd was actually entitled to undertake development of the housing project and in the last also when the actual sale of the flat materialised, Forum Riviera Constructions Pvt Ltd received the consideration from the payment of the purchaser in the Deed as Vendor. So, the overall control over the sale of the property remained with the vendor only from start of project till the sale thereofthe individual purchaser. Hence, in between the period of initiation of building of the housing project and ultimate sale to the actual buyer, the involvement of the intermediaries companies by virtue of sale/homination agreement is nothing, but tax planning of the assessee in the form ....
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....d of any business or economic merit. 7.5 Therefore, in view of the above, I did not find any infirmity in the action of the assessing officer of disallowing the amount of long term capital loss of Rs. 3,23,25,547/- claimed as carried forwarded and the amount of Rs. 96,05,579/-which is the normal profit shown in the Profit & Loss A/c as 'Profit on Sale of Right Acquisition/Booked Belur Flats' as income of the assessee is therefore upheld. Thus Ground No 2 to 6 are dismissed." 9.5 Thus in view of above, I do not concur with approach of the assessing officer to tax the advances against sale of flats as speculative transaction by invoking section 43(5) but it is to be taxed as profit on sale of right as income of the a....
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....nd direct the ld. AO to treat the lease rental charges as income from house property and accordingly, allow the deduction u/s 24(1) of the Act. The ground no. 1 to 4 are allowed. 3. The second issue raised in ground no.5 is not pressed and hereby dismissed. 4. The issue raised in Ground nos. 6 to 8 are against the confirmation of addition of Rs.86,24,540/- by the ld. CIT (A) as made by the ld. AO on account of speculation business. 4.1. The facts in brief are that the assessee paid an advance for purchase of flats from Forum Rivera Constructions P. Ltd (developer). The project was in progress during the year and the advance paid to the developer was shown in the asset side of the balance sheet as 'advance against space booking'. Th....
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....a Bojgaria 9,66,900 9,96,900 9. Susmistha Roy 2,60,000 Sub total (C) 1,50,29,178 23,30,900 Total (A+B+C) 2,43,29,178 3,89,30,900 4.2. Accordingly, the assessee was asked to explain why Rs.3,46,00,000/- received from Forum Rivera Constructions P. Ltd. during the year and why should not be treated as concealed income vide order sheet dated 10.02.2016. The assessee also received Rs.2,30,000/- from Ram Chandra Trading on account of sale of flat by way of not surrendering ownership, giving up only the sale right. Thus, it is not disputed that assessee received advance of Rs.3,42,30,000/- during the previous year (Rs.3,40,00,000) by way of adjustment by the developer and Rs.2,30,00....