M/S. GLOBAL ARKITEKTS PVT. LTD.,CHENNAI vs. ITO, CORPORATE CIRCLE - 2 (2), CHENNAI

ITA 708/CHNY/2020Status: DisposedITAT Chennai30 November 2022AY 2009-1021 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reassessment proceedings were invalid as there was no tangible material to suggest escapement of income, and the reopening was done beyond the prescribed time limit without proper justification. The surplus from the sale of land was not to be treated as business income.

What were the facts?

The assessee company sold agricultural land for Rs. 26.68 Crores, having purchased it for Rs. 7 Crores. The surplus was credited to the 'Reserves and Surplus' account. The Assessing Officer reopened the assessment beyond four years, treating the surplus as business income.

What were the issues?

The primary issues were the validity of reassessment proceedings initiated beyond four years and whether the surplus from the sale of agricultural land constituted business income or capital gains.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 148

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: HON’BLE SHRI V. DURGA RAO & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Respondent: Shri S. Chandrasekaran (JCIT) – Ld. Sr. DR

Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2009-10 arises out of the order of learned Commissioner of Income Tax (Appeals)-6, Chennai [CIT(A)] dated 18-03-2020 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) r.w.s. 147 of the Act on 31-12-2016. The grounds taken by the a

The order continues below.

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