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TMI Blog2020 (5) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 (the Act) concerning AY 2009-10. 2. The grounds of appeal filed by the assessee read as under: "1. The order u/s. 263 of IT Act passed by the Commissioner of Income - Tax, Baroda - III is bad in law & deserved to be quashed, as the assessment order passed by assessing officer was not erroneous & pre - judicial to the interest of revenue. 2. The Commissioner has erred in law and on facts in directing the assessing officer to verify the under consideration amounting by Rs. 78,76,580/- towards the sale proceeds relating to sale of non-agriculture land & the same deserves to be uncalled for. 3. The Commissioner has erred in law and on facts in directing the assessing officer to verify the consultancy charges paid to Mangala Property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oted by CIT with reference to first issue, sale receipts, as per agreement/banakhat, the total sale receipts stands at Rs. 5,33,21,000/- whereas the assessee has declared sale transaction to the extent of Rs. 4,54,44,420/- only resulting in under assessment. The CIT did not find the explanation of the assessee that the difference amount represents payment to land owners and other legal expenses towards cost of acquisition of such land to be satisfactory. As regards the second issue, the revisional CIT observed that expenditure incurred on payments to assess concerns under s.40A(2)(b) of the Act has not been examined. It was also not examined that the transactions have been carried out arm length. The CIT further alleged that the counts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade for incurring other expenses associated with cost of acquisition. It was thus submitted on facts that the cost incurred for acquisition of land is required to be deducted for determination of correct profit which is what was done by the assessee albeit through an erroneous presentation of accounts. It was conceded that the assessee ought to have declared the full sale consideration of Rs. 5,33,21,000/- on the receipt and should have simultaneously deducted Rs. 78,86,580/- towards cost of acquisition instead of netting of the two figures. The learned AR however insisted that such erroneous presentation of accounts has no impact whatsoever on the resultant income declared by the assessee and therefore no prejudice can be said to have caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee submitted that the revisional exercise is not justified on this score as well as the AO had made an inquiry in this regard as well. The learned AR referred to the written submissions placed before the Revisional Commissioner and submitted that the agreement was executed between the assessee and Mangla Properties for incurring consultancy charges of Rs. 1,57,00,000/- in question. Similarly, the assessee has incurred Rs. 29,61,000/- towards development incurred paid to Chetan Builders in the course of development business. It was submitted that the expenses were incurred for carrying out cleaning and labeling work of land and also doing fencing work and removing unauthorized encroachments on the land. For this service, a payment of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surement by the Government Authorities. (ii) Appointment of Architecture/Structural Engineer, their responsibilities, & to decide Quantum of fees or mode of payment & all other related conditions. (iii) According to demand of current market trend, to advice the assessee. (iv) The discussion or publicity of plan will be done by way of advertisement in newspaper, publicity agency, appointment of literature, advertisement in press, etc. (v) Appointment of agencies regarding work of land scrapping, water harvesting, storm water, drainage system, supply of electricity, construction for build, etc & to decide their responsibilities, quantum of fees, mode of payment, terms & conditions of the done by them." 9. A bare reading of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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