TaxTMI 
TaxTMI 
2026 (8) TMI 206
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....for the Assessment Year (AY) 2012-13 on 07.11.2025 emanating from assessment order under section 143(3) of the Act, dated 25.03.2015. 2. The assessee has raised following grounds of appeal: "1. In the facts and circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals), NFAC has erred in confirming the addition of Rs. 2,12,80,946/- made by the Id. Assessing Officer on account of alleged closing stock of land pertaining to roads/gardens without appreciating the facts of the case in their entirety. 2. In the facts and circumstances of the case and in law, the Ld. Commissioner of Income-tax (Appeals), NFAC has erred in confirming addition of Rs. 3,00,000/-made by the ld. Assessing Officer on account....
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.... 47,980/-, being (10%) of depreciation claimed, as made by the Id. Assessing Officer u/s. 38(2) of the Income-tax Act, 1961 without appreciating the facts of the case in their entirety. 8. The impugned order is bad in law and on facts. 9. The appellant reserves the right to add, alter, omit or amend all or any of the grounds of appeal in the interest of justice." 3. Submission of Ld. Authorised Representative of Assessee : The Ld. AR for the assessee submitted that the assessee is into the business of purchasing large tracts of land, developing the same into saleable plots after preparing and obtaining approval of layout plans from the appropriate local authorities and sales thereof. The ultimate purpose of small plo....
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....and, proportionate cost of road/ garden development, land filling expenses, relatable to the area sold during a year received from customers is included. Receipts from the same are separately credited to the Trading and Profit & Loss A/c. He further submitted that the assessee had purchased agricultural lands and prior to commencement of development activities, diversion of lands for change in land use is required therefore observation of Id. Assessing Officer that lands were Rot diverted is correct. However, it is also true that before diversion of such lands, these were let out to farmers for agricultural activity. He submitted that as per clause (a) of section 2(1A) of the Act, "agricultural income" means any rent or revenue derived from....
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....ss of real estate development and trading of plots, flats and shops and accordingly earned the income. During the course of assessment proceedings, it was noted by Ld. AO that the assessee has sold 15,04,467 sq. ft. of land, the assessee also claimed that out of which 3,05,583 sq. ft. land was consumed in development of roads and gardens. The Ld. AO considered the value of 3,05,583 sq. ft. of land in the valuation and made addition of Rs. 2,12,80,946/-. According to the Ld. AO, the assessee has not included 3,05,583 sq. ft. of land in the closing stock. It was submitted before the Ld. AO by the assessee that the assessee had consumed that land in the development of roads and gardens, therefore, the said land was not available for sale, henc....
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....has pleaded that the assessee had given certain agricultural land on lease to the farmers and earned Rs. 3,00,000/- of rent, therefore, the assessee claimed the same as an agricultural income. It has been noted by the Ld. AO that no evidence has been filed by the assessee. Similarly, during the appellate proceedings before Ld. CIT(A) no specific evidence has been filed. In these facts and circumstances of the case, we confirm the addition of Rs. 3,00,000/- made by the Ld. AO. 8. Ground No. 3: Ground No. 3 is regarding the addition made under section 14A of the Act. It is an admitted fact mentioned in the order of the Ld. CIT(A) that during the year, there is no exempt income earned by the assessee. Once the assessee has not earned any ex....