2017 (3) TMI 1981

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....der dated 21st March, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The common impugned order is in respect of Assessment Years 2008-09 and 2009-10. 3. The Revenue urges the following common identical questions of law for our consideration : (i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in holding that 35% share received by assessee company (SPPL) was not in nature of overriding title to the revenue generated by the AOP but only share of profit of SPPL in the AOP? 4. The respondent assessee is a member of Association of Partners (AOP). This AOP being assessed to tax in the name and style of M/s. Fortaleza Developers (AOP). It consists of two members one being M....

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.... respect of Assessment Year 2007-08. 6. In the meantime, pending the aforesaid proceedings, the respondent assessee had offered 35% of its profit received from M/s. Fortaleza Developers (AOP) as its share of profits for the subject Assessment Years. However, claimed no liability to tax in view of Section 86 r/w Section 67A of the Act. However, the Assessing Officer disallowed the same on the ground that the share of 35% received by the respondent assessee from M/s. Fortaleza Developers (AOP) was consideration for surrender / transfer of development rights in the plot of land and not its share of profits.   7. Being aggrieved, the respondent assessee carried the issue in appeal to the Commissioner of Income Tax (Appeals) [CIT(A)].....