9911796707
TMI Blog2021 (1) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax, Circle 4(3)(1), ('Learned AO') and Commissioner of Income Tax (Appeals) -4 ('Learned CIT(A)') have erred in passing an order which is bad in law and contrary to facts of the case; 2. The Learned CIT(A) has erred in upholding disallowance of Rs. Rs. 95,00,000/- made to the returned income of the Appellant; 3. The Learned CIT(A) and AO have erred in law and on facts in not appreciating that the revenue in nature as it was done in the ordinary course of its business and therefore, squarely allowable under the provisions of the Income-Tax Act, 1961('the Act'); 4. On the facts and in the circumstances of the case and in law, the Learned AO and CIT(A) have erred in arriving at the conclusion that the property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is a partnership firm engaged in the business of development of real estate, purchase and sale of land and other related activities. The assessee has filed the return of income electronically on 26.09.2013 with total income of Rs. 30,45,190/-.Subsequently, the case was selected for scrutiny and Notices under Section 143(2) and 142(1) of the Act were issued. In compliance, the ld. AR of the assessee appeared from time to time and furnished the details and the case was discussed. The Assessing Officer on perusal of the Profit and Loss Account found, that the assessee has claimed an expenditure of Rs. 95lakhs as advance made for purchase of property forfeited. The Assessing Officer called for the Agreement of Sale and found that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l complexes and the transaction is not in the normal course of business and hence has to be capitalized and made disallowed claim of expenditure of Rs. 95 lakhs and assessed the total income of the assessee at Rs. 1,25,45,190/- and passed the order under Section 143(3) of the Act dt.12.03.2016. Aggrieved by the order, the assessee has filed an appeal with the CIT (Appeals). The CIT (Appeals) considered the grounds of appeal, statement of facts and assessee submissions dt.13.03.2018 referred at para 5.2 of the order and observed in page 10 at para 5.3 that the assessee has not made serious efforts to recover the forfeited amount paid to the seller and the expenditure was claimed in profit and loss account as advance forfeited for purchase o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Authorized Representative referred to page 27 of paper book were copy of the partnership deed dt.2.3.2009 was filed and at clause 3 the nature of business carried by the firm, was also in purchase and sale of land or any other real estate. Whereas in the present case, the assessee has intended to purchase property for a consideration of Rs. 3,95,00,000/- out of the said amount of Rs. 95 lakhs was paid by the assessee which is not disputed by the Assessing Officer and the balance of Rs. 3 Crores has to be paid as per the Agreement of Sale referred at page 32 of the Paper Book on or before 20.02.2013. The learned Authorized Representative referred to the page 33 of the Paper Book, where the profit and loss account discloses the advance fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of events as referred by the assessee at pages 5 to 7 of the Paper Book, do not find a place in the assessment order and there is no clarity with respect to details. The CIT (Appeals) has also observed that no evidence was filed before the lower authorities in respect of serious efforts made by the assessee. We on perusal of the legal notices and facts narrated by the assessee are of the opinion that these facts are not discussed by the Assessing Officer or the CIT (Appeals) and the assessee firm could substantiate serious efforts made for recovery of advance amount. We considering the principle of natural justice, shall provide one more opportunity to the assessee to substantiate with the evidence before the Assessing Officer. According ..... X X X X Extracts X X X X X X X X Extracts X X X X
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