×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
01-03-2019, Narangi Land Development, Section 10(1), 28(1), Tribunal Mumbai
The present Appeal filed by the assessee is against the order of Ld. CIT (Appeal) – 46, Mumbai dated 31.01.2017 for AY 2006-07 on the grounds mentioned herein below:-
1. The Ld. CIT(A) has erred in confirming disallowance of compensation paid to retiring member of AOP amounting to Rs.15,00,000/- on consideration of the same as payment towards goodwill.
Your Appellant prays that on the facts and
circumstances of the case, the Ld. Assessing Officer may be directed to grant deduction for compensation paid to retiring member of AOP as claimed by your Appellant in Return of Income.
2. The Ld. CIT(A) has erred in restricting allowance of Land Development Expenses, out of Rs. 48 51,244/-, to the extent of 25% of such expenses in absence of supporting details. Your Appellant prays that the Ld. Assessing Officer may be directed to restrict the disallowance to 10% of said Expenses (Rs. 48,51,244) -i.e. disallowance may be restricted to Rs.485124/- only.
3. Your Appellant craves leave to add, amend, alter, modify and/or change the above Ground of Appeal.
2. The brief facts of the case are that the assessee had procured land in the village Narangi and had entered into a contract with M/s.Lok Holding for getting the conveyance in their favour. However, due to financial problems, the assessee sold its rights in favour of Viva Holding. The assessee followed contract completion to arrive at profits. The return of income for the year under consideration was filed on 30- 0-2006 showing total income of Rs.1,20,65,170/-. The assessment was completed u/s.143(3) of the Act and total income was determined at Rs.3,85,95,450/- after making the additions under different heads.
Aggrieved by the order of AO, assessee preferred appeal before Ld. CIT(A) and Ld. CIT(A) after considering the case of both the parties, partly allowed the appeal of the assessee.
Now before us, the assessee has preferred the present appeal by raising the above ground.