Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 1148 - ITAT DELHIFraming assessment u/s 143(3) without serving notices at the registered e-mail address - changing of the e-mail id - assessee on failure to provide reasonable and adequate opportunity of hearing, thus sought for setting aside the order impugned - HELD THAT:- Assessee had partially complied to notice issued u/s 143(2) and the notice u/s 142 (1) dated 01/02/2020, which proves that the assessee was accessing to his registered e-mail address till 1st February, 2020. It is the claim of the assessee before the AO that the assessee had changed the e-mail id subsequently, therefore, the notice has not been served on the Assessee. It is seen that the said changing of the e-mail id has not been brought to the notice of the Revenue Authorities, in such events, the A.O. cannot be found fault of not serving the notices. Thus, we find no merit in Ground raised by assessee. Disallowance in respect of exceptional items claimed in the profit and loss account - Assessee claimed expenditure in form of exceptional item - Assessee has entered into concession agreement with Ramagundam Fertilizer & Chemical Limited (RFCL) on 23/03/2016 towards grant of right and concessional to RFCL with regard to facility area - HELD THAT:- It is an admitted fact that the assessee has given right of lease of 99 years of the property of the Assessee to RFCL vide concession agreement dated 23/03/2016. In view of the said lease, RFCL has issued 11% of the total capital expenditure of the said property as equity shares to the Assessee valuing at Rs. 144.49 crores. The assessee charged the said amount to P & L account claiming as exceptional item, thus, the Assessee claimed as Revenue expenditure while computing the income of the Assessee. The said claim of the assessee was not based on any prudent accounting principles. The same is an income earned by the Assessee on giving the right to use the land at a concession rate. In any normal circumstances, if any third party would be required to pay Rs. 144.49 crore to acquire those shares. The shares were acquired in lieu of right to use the Assessee’s capital assets by RFCL. Thus, we find no merit in the grounds of Appeal of the Assessee. AR made an oral submission that the Assessee had indeed offer to tax this sum in AY 2020-21. As we have already held herein above that income had indeed accrued to the Assessee during the year under consideration sum of Rs. 144.49 crores, which has been received by the Assessee in the form of shares in the Joint Venture Company to the tune of Rs. 92.51 crores, remaining sum of Rs. 51.98 crores has been shown as receivable in the balance sheet of the Assessee, in case if the said sum has been again offered to tax by the Assessee in subsequent years, the same should be deleted in the Assessment Year, in order to avoid double taxation. In our considered opinion, this direction is given to the Ld. A.O. to avoid double taxation and to meet the ends of justice.
|