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TMI Blog2023 (11) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition in the Assessment Year 2013-14 as mentioned above by considering the said land of 47.01 bighas as the stock held by the appellant. On the other hand, M/s Parsvnath Developers Ltd. has [confirmed that these sales are reflected in its books of account. In view of all the above facts, I find no material basis for the estimated addition made by the AO. Decided against revenue. - Shri Saktijit Dey, Vice-President And Dr. B.R.R. Kumar, Accountant Member For the Department : Ms. Sapna Bhatia, CIT - DR For the Assessee : Shri Rajat Jain Akshat Jain, CAs ORDER PER SAKTIJIT DEY, VICE PRESIDENT: This is an appeal by the Revenue against order dated 10.04.2019 of learned Commissioner of Income-Tax (Appeals) -23, New Delhi pertaining to assessment years 2013-14. The effective grounds raised by the Revenue are as under: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in restricting the addition of Rs. 58,78,13,030/- to Rs. 78,510/- made by the A.O on account of deemed profit on transfer of WIP (i.e. land measuring 47.01 bigha to Parvnath Developers Ltd. without considering the fact that the assessee company is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the query raised, the assessee furnished its reply. On perusing the reply of the assessee, the Assessing Officer observed that the assessee has stated that all the rights relating to the land such as development, marketing and sales has been given to M/s. Parsvnath Developers Ltd. and the assessee has received the advances of Rs. 1,50,00,000 against sale of land in earlier years. After verifying the details furnished by the assessee including various agreements, the Assessing Officer observed that assessee s claim that all rights relating to development, marketing and sale of land belong to M/s. Parsvnath Developers Ltd. is untenable. He further rejected assessee s claim that it is a landholding company of the subject land and for the sale of property to various customers by the developer company, the assessee has to execute sale deed as per the transaction of the developer company. He observed that assessee s contention that it has not made any sale/purchase of immoveable property in its own capacity is not correct as the assessee is legal and beneficial owner as well as in possession of the land. He further observed, in assessment year 2013-14, there was a complete change in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or part of addition, learned First Appellate Authority sustained the addition of Rs. 78,510. 6. Being aggrieved with the aforesaid decision of learned First Appellate Authority, Revenue is before us. 7. At the outset, learned counsel appearing for the assessee submitted that the issue is squarely covered in favour of the assessee by the decision of the Tribunal in its own case in assessment years 2006-07 and 2012-13. In this context, he furnished before the Bench, order dated 26.11.2021 passed in ITA Nos.3906 3907/Del/2017. 8. Learned Departmental Representative, though, fairly agreed that the issue is squarely covered by the decision of the Tribunal, however, he relied upon the observations of the Assessing Officer. 9. Having considered rival submissions, we find that while deciding identical issue in assessee s own case in assessment year 2012-13 in the order referred to above, the Tribunal has upheld the deletion of similar addition with the following observations: 7. On further appeal, the Ld. CIT(A) has deleted the addition observing as under: 5. The above written submissions have been carefully considered. Grounds of appeal nos. 1 to 3, all pertain to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived in respect of purchase and sale of land made in district Jodhpur, Rajasthan, for assessment year 2012-13 pertains to sale of plots by M/s Parsvnath Developers Ltd. 5.2. The AR has submitted that the appellant had entered into an agreement with M/s Parsvnath Developers Limited on 01.09.2006, as per which, M/s Parsvnath Developers Limited was to make an advance to the appellant company to purchase, or arrange to purchase land in village Bansi, Jodhpur. The appellant had accordingly purchased 47.01 bighas of land on behalf of M/s Parsvnath Developers Limited. The appellant, even though it was the registered owner of the said land which was shown as stock in trade in its books of accounts, it was M/s Parsvnath Developers Ltd. which held all the rights to the said land, such as development, marketing and sale. 5.3. Moreover, it has been pointed out that the AO has made addition on account of alleged sale of 107.15 bighas, including the 47.01 bighas, to M/s Parsvnath Developers Ltd. in the AY 2006-07. The AO has again made addition on account of purchase of part of the land admeasuring 47.01 bighas in the AY 2009- 10, and on account of sale of the developed plots which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 47.01 bigha 08-09 47.01 bigha 09-10 47.01 bigha 31,06,700/- Purchase of 4700 sq. yds. 31,06,700/- 4700 sq. yds. 10-11 47.01 bigha 58,27.311/- 1100 sq. yds 3600 sq, yds. 11-12 47.01 bigha 3600 sq. yds. 12-13 47.01 bigha 1,87,19,545/- 3600 sq. yds. 13-14 Trfr to PDL 1,46,43,770 47.01 bigha 58,78,13,030 Deemed profit on transfer of 47.01 bigha land held as WIP on 01.04.2012 16,10,237/- 370 sq yards (47.01) bigha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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