TaxTMI 
TaxTMI 
2026 (1) TMI 1380
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....the Revenue, ITA No. 4761/Del/2015 and the Cross Objection No.7/Del/2016 are filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals)-XVI, New Delhi ("Ld.CIT(A)",for short], dated09/06/2015 pertaining to Assessment Year 2011-12. 2. Grounds of appeal of the Revenue in ITA No.5168/Del/2015 are as under: "1. "On the facts and the circumstances of the case the Ld. CIT(A) has erred in deleting the addition made by AO of Rs. 21,13,44,015/- by observing that the property comes in category type-1 i.e. for agricultural/residential not for commercial type-3." 2. "The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 89,75,917/-(out of Rs. 95,75,917/-) made by the AO on Packing....
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....ng the disallowance of packing expenses to the extent of Rs. 6,00,000/- on ad-hoc basis. 3. That on the facts and in the circumstances of the case and the legal position, the Ld. CIT(A) has erred in confirming the disallowance of loading and unloading, cartage outward, general expenses, staff welfare, business promotion and printing and stationery to the extent of Rs. 1,00,000/- on adhoc basis. 4. That on the facts and in the circumstances of the case and the legal position, the Ld. CIT(A) has ered in confirming the disallowance of 1/10th of telephone expenses and conveyance expenses amounting to Rs. 81,818/- for alleged personal use." 3. Brief facts of the case are that, the Assessee sold "Lal Dora Property' at Badli, ....
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....y the assessment order dated 27/03/2014, Assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 09/06/2015, deleted the addition of Rs. 21,13,44,015/-, restricted the disallowance of packing expenses to Rs. 6,00,000/- from 95,75,917/-, by granting relief of Rs. 89,75,917/- further restricted the disallowance of various expenses to Rs. 1,00,000/- from Rs. 10,66,284/- and the Ld. CIT(A) sustained the disallowance of telephone and conveyance expenses of Rs. 81,818/-. 5. As against the order of the Ld. CIT(A) dated 09/06/2015, the Revenue preferred an Appeal and the Assessee has also filed Cross objection before the Tribunal. The Tribunal after hearing both the parties, vide order dated 24/02/2020 upheld the find....
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....ble High Court vide order dated 06/08/2024, remanded the matter to the file of the Tribunal for fresh adjudication on the issue as to whether the Ld. CIT(A) is right in holding the multiplicative factor '1' on the property sold by the Assessee. 8. Before us, the Ld. Departmental Representative submitted that during the assessment proceedings inspector has visited the property and found that the entire property has been used as Go-down for storage for electrical items such as cables and fans of Havells Company and the entire property has been used for commercial purpose by the Assessee, even the said Street No. 9 found with Factories and Industries and there was no residential premises baring one or two. Thus, the Ld. Department's Rep....
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.... the sake of Godown for which no sanction has been issued by the competent authority and admittedly the competent authority has not levied any penalty or find for such misuse of land by the Assessee, therefore, in our considered opinion, since, the property in question is identified as residential/ agricultural property in the Revenue records maintained by the State Government, the multiplicative factor '1' has to be taken. 11. As long as the Revenue records maintained by the Authorities remains agriculture in nature there could be no dispute about the character of the land which in the instant case was agriculture/residential. There cannot be any deemed conversion of land based on the usage of the property until and unless it is recogni....