2026 (6) TMI 1119

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....om the appellate order dated 3 April 2025 passed by the National Faceless Appeal Centre, Delhi (the learned CIT(A), by which the Assessee's appeal against the reassessment order dated 19 May 2023 passed u/s. 147 of the act, was allowed. Aggrieved by that decision, the Revenue has filed the present appeal before us. 2. The learned assessing officer has raised the following grounds of appeal. (i) Whether on the facts and in the circumstances of the case, the learned CIT(4) erred in holding that the reassessment notice issued on 29.06.2021 is barred by limitation, without appreciating that by virtue of the Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020 ("TOLA"), the limitation period stood validly extended up ....

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....was reopened under section 147 of the Act after obtaining prior approval from the competent authority. 4. In response, the assessee submitted that an MOU had been executed with M/s Hotel Rama Pvt. Ltd. on 05.08.2004 at Bangalore. Under the MOU, Hotel Rama Pvt. Ltd. intended to acquire land in and around Bangalore for development of hotels, resorts, residential schools, and residential layouts, as required, and the assessee, Shri M. Ramakrishna, agreed to make available such non-agricultural land as and when required. Thereafter, a sale agreement was entered into between Shri M. Ramakrishna, as seller, and M/s Hotel Rama Pvt. Ltd., as purchaser, on 02.12.2004. The agreement was not registered. Under the MOU and sale agreement, the purchas....

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....- should therefore be adopted instead of the SRO value. The investment of Rs. 1,20,00,000/- was stated to have been financed through a loan from Indira Hotel Pvt. Ltd. The property was held as stock-in-trade, and the profit on sale was offered under the head "Income from business and profession." The assessee also stated that conversion charges of Rs. 5,86,920/- on 11.03.2005 and Rs. 5,54,340/- on 18.02.2006, aggregating to Rs. 11,41,260/-, were incurred as cost of improvement. No cash consideration was received. Since the property was stock-in-trade, the assessee contended that no capital gains arose. He further submitted that purchase and sale of property was his business, and that the agreed price of Rs. 9 lakh per acre reflected anticip....

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.... the land on behalf of M/s Hotel Rama Pvt. Ltd., using funds arranged by that group. On this basis and having regard to the documents and material on record, the AO concluded that the assessee had failed to satisfactorily explain the transactions and the income arising therefrom during the relevant year. Accordingly, the entire fair market value of the property, namely Rs. 16,08,30,001/-, was treated as long-term capital gains and added to the Assessee's total income. 7. The learned Assessing Officer passed the assessment order determining the Assessee's total income at Rs. 16,74,79,471/-, including an addition of Rs. 16,08,30,001/-. 8. Aggrieved, the assessee appealed before the learned CIT(A), who allowed the appeal on the technical....