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TMI Blog2017 (5) TMI 1398X X X X Extracts X X X X X X X X Extracts X X X X ..... developer and examine him in the presence of assessee. If the assessee has received amount over and above the sale consideration, the same should be assessed as income of the assessee. Accordingly, this issue is restored to the file of Assessing Officer for readjudication afresh in the terms indicated above. Appeals of the assessee stand allowed for statistical purposes. - ITA No.533/Bang/2017 - - - Dated:- 26-5-2017 - SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER For The Appellant : Shri H.N. Khincha, CA For The Respondent : Smt. Swapna Das, Jt.CIT(DR)(ITAT)-2, Bengaluru ORDER This appeal is preferred by the assessee against the order of CIT(Appeals) inter alia on the following grounds:- 1. The learned Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest U/s. 234A and U/s. 234B of I.T. Act, 1961. The interest having been levied erroneously is to be deleted. 6. In view of the above and on other grounds to be adduced at the time of hearing, it is requested that impugned order be quashed or at least the addition as made be deleted and interest levied be also deleted. 2. Though various grounds are raised, but they all relate to addition of ₹ 33,79,546 to the income of the assessee as income from business of real estate. 3. During the course of hearing, the ld. counsel for the assessee has invited our attention to the fact that assessee has entered into a sale agreement with M/s. Royal Prime Developers for sale of converted land measuring 3 acres 20 guntas situated at Mal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is before the Tribunal and has invited my attention to the agreement for sale and MoU executed with the developer with the submission that by virtue of agreement of sale, assessee has handed over possession of the land to the developers against a sum of ₹ 2,62,50,000, though payment was received on subsequent dates when the sale deed was executed. The corresponding capital gain was offered in the year of execution of sale agreement. Therefore, it is not proper to assess the business income in the hands of assessee as he has simply executed the sale deeds in favour of prospective buyers as per the terms of sale agreement as well as the MoU. 6. The ld. DR, on the other hand, has invited my attention that AO has categorically record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to cost basis. It was further stated by the authorized representative of the developer that sale consideration mentioned in the sale deeds are consideration received by the land owners and does not include assignment fees collected by the developer. The relevant observations of the AO in this regard is extracted hereunder for the sake of reference:- 4. During the course of assessment proceedings enquiries were conducted with M/s. Royal Prime Developers with whom the assessee had entered into sale agreement. The M/s. Royal Prime Developers vide letter dated: 18.02.2015 has made the following submission: 1) They have entered into sale agreement with the assessee Mr. Sohanlal in respect 3 acre 20 guntas of land. 2) The developer stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he owner: In this type of transaction, at the time of registration purchaser would pay the entire agreed sale consideration to the owner of the land by way of cash and at the same time we would collect our assignment fees by way of cash. 3. Collection on Behalf of the Owner In this type of transaction, the intended purchaser would either paid the part of the entire agreed sale consideration to us or paid in full amount of the entire agreed sale consideration. When part payment is received by us at the time of registration, the balance amount of agreed amount of sale consideration would be paid directly by the purchaser to the owner and we, after retaining our assignment fees, have settled the balance amount to the owner, periodical ..... X X X X Extracts X X X X X X X X Extracts X X X X
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