9911796707
TMI Blog2019 (11) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Mr.A.S.Sriraman represented on behalf of the Assessee and Mr.Sailendra Mamidi represented on behalf of the Revenue. 3. It was submitted by ld.AR that the assessee had during the relevant assessment year sold undivided interest in land, held by the assessee company as an investment in Old Mahabalipuram Road (OMR). It was submitted that while filing the return of income, the assessee disclosed the same as giving rise to long term capital gains. It was submitted that the assessee had purchased the said land on 02.08.2007. The assessee had proposed to put a Software Technology Park on the said land. However, as the assessee was unable to source the funds for the same, assessee had sold the undivided interest in the land to various prospe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, the income of assessee from the sale of undivided interest in land was liable to be assessed only under the head "income from capital gains". It was submitted that ld. PCIT did not accept the replies filed by the assessee to show cause notice u/s.263 of the Act, while passing impugned order dated 07.03.2019, ld.PCIT held that the Assessing Officer had accepted the assessee"s claim without making due verification and without making necessary enquiries and that there was no application of mind on the part of the Assessing Officer and consequently directed the Assessing Officer to pass fresh order after examining the aspects again. It was submitted that the order passed u/s.263 of the Act is unsustainable in so far as the assessee has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... residential flats, being constructed by a Third Party on the said land. The said land has been acquired by the assessee as early as 2007 and the sale of undivided interest in the land has taken place in 2014 onwards. Thus, it is very clear that this property is held by the assessee for more than seven years. It is an admitted fact that the assessee had proposed to start a Software Technology Park, and on it is failure to do so, the assessee had sold the said undivided interest in its land to various flat owners. The business of the assessee is not of purchase and sale of the land. The assessee has in its return claimed the same as giving rise to long term capital gains, which has also been examined by the Assessing Officer in the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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