COMMISSIONER OF INCOME TAX V vs. M/S RELEST BUILDERS & SERVICES

ITA - 708 / 2006HC Delhi09 May 20061 pages

For Petitioner: MR.SANJEEV SABAHRWAL

AI SummaryPartly Allowed

What did the High Court hold?

The High Court admitted the appeal and formulated a substantial question of law regarding the timing of income accrual for the assessee. The court did not provide a decision on the merits of the case in this order. The question posed to the court is whether the ITAT was correct in its finding that income accrues only upon registration of the sale deed, and not upon the execution of a tripartite agreement and receipt of full consideration. The High Court's order is limited to admitting the appeal and framing the question of law for determination. The operative direction is to list the matter for hearing after the parties file paper books. No specific finding on the issue was made, and the ratio decidendi is yet to be established.

What were the facts?

The Commissioner of Income Tax (Appellant) filed an appeal against an order passed by the Income Tax Appellate Tribunal (ITAT). The assessee is M/s Realest Builders and Servic (Respondent). The appeal concerns Assessment Year(s) not specified in the judgment. The ITAT had held that income accrues to the assessee only upon registration of the sale deed, not on the execution of a tripartite agreement and receipt of full consideration. The High Court admitted the appeal and formulated a substantial question of law. The procedural history involves the ITAT's decision being challenged before the High Court.

What were the issues?

1. Whether the ITAT was legally correct in holding that income would accrue to the respondent-assessee only on registration of the sale deed in favour of a purchaser and not on the execution of the tripartite agreement and receipt of full consideration amount pursuant thereto? (Question of law) Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The revenue, through the Commissioner of Income Tax, is challenging the ITAT's decision. The core of the revenue's argument, implied by the question of law, is that income should be recognized upon execution of the tripartite agreement and receipt of full consideration, rather than waiting for the registration of the sale deed. No specific authorities, circulars, or precedents were mentioned in the provided text.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA No.708/2006 . COMMISSIONER OF INCOME TAX V ..... Appellant Through: Mr.Sanjeev Sabharwal, Adv. . versus . M/S REALIEST BUILDERS and SERVIC ..... Respondent . . . Through: None. . CORAM: HON'BLE MR. JUSTICE T.S.THAKUR HON'BLE MR. JUSTICE SHIV NARAYAN DHINGRA . O R D E R 09.05.2006 CM No.6605/2006 Heard. Allowed subject to just exceptions. ITA 708/2006 Admit. The following substantial question of law is formulated for determination: ?Whether the ITAT was legally correct in holding that income would accrue to the respondent-assessee only on registration of the sale deed in favour of a purchaser and not on the execution of the tripartite agreement and receipt of full consideration amount pursuant thereto.? Paper books to be filed within three months in accordance with the High Court Rules. . Post for hearing at its turn. . . T.S.THAKUR, J . . . SHIV NARAYAN DHINGRA, J MAY 09, 2006 ga

Recent GST High Court judgments

Search GST case law →