9911796707
TMI Blog2022 (12) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly, we allow this issue of assessee s appeal. - ITA Nos. 1299 & 2399/CHNY/2018 - - - Dated:- 18-11-2022 - SHRI MAHAVIR SINGH , VICE PRESIDENTAND SHRI G. MANJUNATHA , ACCOUNTANT MEMBER Appellant by : Shri S. Sridhar , Advocate Respondent by : Shri AR.V. Sreenivasan , Addl.CIT ORDER PER MAHAVIR SINGH, VICE PRESIDENT: These two appeals by the assessee are arising out of two different orders of the Commissioner of Income Tax (Appeals)-1, Chennai vide ITA Nos.306/CIT(A)-1/2016-17 96/CIT(A)-1/2017- 18 dated 28.03.2018 28.06.2018. The assessments were framed by the ACIT, Corporate Circle 1(2) / ACIT(OSD), Corporate Range 1, Chennai for the assessment years 2014-15 2015-16 u/s.143(3) of the Income Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the AO and not considered the explanation submitted by assessee properly. Aggrieved, assessee came in appeal before the Tribunal. 4. Now before us, the ld.counsel for the assessee stated that the assessee before AO and CIT(A) placed copy of sale agreement which discloses the value of land at Rs.4.50 crores. The original sale agreement for transfer of land was to the extent of 13,130 sq.ft., @ Rs.2437.26 per sq.ft. It was contended before the lower authorities by the assessee that 4139 sq.ft., out of the total area was transferred for a sum of Rs.1,41,85,300/- which works out at Rs.3427.26 per sq.ft. It was contended that they have paid the same price as per the agreement for the acquisition of land of 4139 sq.ft., transferred during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een held that such rent was an admissible deduction in computing the income of the assessee without attracting the provisions of section 40A(2). 5. The ld.Senior DR relied on the assessment order and the order of the CIT(A). 6. After hearing rival contentions and going through the details, it is noted that the payment made for purchase of land is fair market value of land and none of the authorities below have considered this issue whether payment made is excessive or unreasonable in term of section 40A(2)(a)of the Act. Once the payment made is found to be reasonable in term of the perspective of businessman, unless a contrary finding given by the authorities below, the addition cannot be sustained. Accordingly, we allow this issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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