NAVEEN KUMAR MUSINIPALLY,USA vs. ADIT (INT-TAXN)-1, HYDERABAD
Income Tax Appellate Tribunal, HYDERABAD “A” BENCH: HYDERABAD
Before: SHRI MANJUNATHA G & SHRI RAVISH SOOD
PER MANJUNATHA, G.
This appeal has been filed by the assessee against the Order dated 09.02.2024 of the learned Commissioner of Income Tax (Appeals)-10, Hyderabad, relating to assessment year 2016-2017. 2. The assessee has raised the following grounds in the instant appeal :
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“Under the facts and circumstances of the case,
The order of the Commissioner of Income Tax Appeals -10, Hyderabad (The Ld.CIT(A)') in confirming the taxation of long term capital gains arising on the development agreement under section 153C r.w.s 144C(3) of the Income Tax Act 1961 ('the Act') in the subject AY is unsustainable both on facts and in law. A. LEGAL GROUNDS 2. The learned CIT(A) failed to appreciate that the Ld.AO under section 153C r.w.s 144C(3) of the Act is without juri iction and invalid as the transfer of the case was made without complying with the provisions of section 127 of the Act. Therefore erred in confirming the assumption of the juri iction by the Assistant Director of Income Tax (International Taxation)-1, Hyderabad ('the Ld.AO") u/s section 153C r.w.s144C(3) of the Act. 3. The assessment framed by the Ld.AO is without complying with the procedures prescribed u/s. 153C of the Act. Therefore, assessment is bad in law deserves to be quashed. B. FACTUAL GROUNDS 4. Without prejudice to the above legal grounds, the Ld.CIT (A) and the Ld.AQ failed to appreciate that there was no "Transfer" within the meaning of section 2(47) (v) of the Act since the possession of the land on the date of development agreement still vests with the Assessee. Therefore erred in taxing the capital gain on development agreement in the subject AY.
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Without prejudice to ground no.4, that there is no transfer within the meaning of section 2(47)(v) of the Act during the subject AY, the Ld.CIT(A) failed to appreciate that the value of the land as per the Sub