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TMI Blog2015 (1) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... ed AOP named Durga Bhavani Enterprises and AOP has taken contract for the work of preservation, maintenance and transport and handling from A.P. State Warehousing Corporation. Members of this AOP has given their godowns on rent and each member of AOP has claimed deduction under section 80IB (11A) of the I.T. Act which was disallowed by A.O. based on the reasons given in earlier year. Apart from that, A.O. also in exparte order under section 144 made an addition of Rs. 4 lakhs as short term capital gain, Rs. 3,10,743 as long term capital gain and Rs. 1 lakh as income from other sources and brought to tax capital gains declared by assessee as business income at Rs. 14,09,959. 4. Assessee contested before the Ld. CIT(A) who on the basis of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as agricultural lands. Considering all these facts and circumstances of the case, we are of the view that the assessing officer could not make out any case to treat the lands as non-agricultural lands so as to tax the profits on their sale under the head short term capital gains. Since the evidence produced by the assessee clearly shows that the property in question is an agricultural property as such the ratio laid down by the judgment relied by the departmental representative is not applicable to the fact of the case. In the case of CIT vs. Gemini Picture Circuit (P) Ltd., 220 ITR 43, land situated within municipal limits registered as urban land, bearing municipal door No. and subject to urban land tax sold on yardage basis surrounded on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iating the disallowance made by the A.O. in the absence of information/evidence towards the head short term capital gains of Rs. 4,00,000. 5. The CIT(A)-VI is erred in not appreciating the disallowance made by the A.O. in the absence of information/evidence towards the head long term capital gains of Rs. 3,10.743. 6. The CIT(A)-VI is erred in not appreciating the disallowance made by the A.O. in the absence of information/evidence towards the head income from other sources of Rs. 1,00,000." 9. We are unable to appreciate the grounds raised by Revenue for the simple reason that most of the issues have been accepted by A.O. in the remand report. In spite of giving a remand report to Ld. CIT(A) A.O. has come in appeal contesting that Ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was again estimated at Rs. 2,50,000. Further, assessee has shown capital gain on sale of land at Rs. 1,47,441 which was estimated by A.O. at Rs. 1,50,000. In the remand report, when these were pointed out by assessee, A.O. has accepted and accordingly, Ld. CIT(A) deleted them vide para 4.3 as under : "4.3. I have considered the submissions of the appellant, order of the A.O. and facts of the case carefully, it is noticed that in the remand report, the A.O. has accepted the interest income at Rs. 83,721/- as shown by the assessee. Thus, the addition made on estimate basis of at Rs. 1,00,000/- is deleted. Regarding the short term capital gains shown at Rs. 2,06,826/- which was estimated by the A.O. at Rs. 2,50,000/- is again accepted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness is proposed to be taken @ 8% of gross receipts shown. Thus, your income from business is proposed to be taken at Rs. 41,17,343/- ." However, while finalizing the assessment, the A.O. instead of treating the same as "income from business" mentioned as 'income from LTCG'. In the remand report the A.O. has mentioned that while typing income from business, it was mentioned as income from long term capital gains. But even the business income of Rs. 3,10,743/- is also not discussed in the assessment order. On the other hand, the AR has submitted that the A.O. has added the amount of Rs. 3,10,743/- by disallowing the claim of the expenditure incurred by the assessee and has calculated the income by taking 8% of gross receipts wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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