Pune
ITAT accepts assessee’s (land owner) plea that advance received from
developer towards flat booking shall not be taxable in subject AY 2009-10 on
receipt basis, but in subsequent AY when the project was completed and
tenements / flats were handed over to the prospective buyers; Notes that the
assessee had given the land for development and was entitled to receive 18% on
gross sales under the terms of development agreement (‘DA’); With
respect to advance booking amount received in subject AY, ITAT remarks
that “The said amount received by the assessee is an advance receipt
because the right to collect the said amount would crystallize on the day when
the tenants or portion of land is sold by the developer to the prospective
buyers.”; Moreover, observes that the developer recognized the completion
and sale of developed portion in subsequent AY 2011-12, consequently, holds
that the business profits arising to assessee were taxable in such year;
Lastly, ITAT clarifies that since the amount is not assessable to tax as his
business profits in subject AY, the capital gains arising on conversion of
capital asset into stock-in-trade is also not to be taxed in the hands of
assessee in subject AY but in the year in which the business profits are to be
taxed:ITAT
Subscribe to:
Post Comments (Atom)
Requirement to dematerialize shares of private limited companies
The Ministry of Corporate Affairs in October 2023 had mandated private companies and their shareholders to dematerialize their shareholding...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
1. Introduction: Every trust/charitable society/ NGO that wishes to claim the tax exemption benefits has to file Form 10A to seek fresh re...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
NECESSITY : Sometimes, in view of the expansion of the business, multiple increase in turnover and need for getting finances from the ...
-
· Mumbai ITAT in the case of Mukesh Harilal Mehta held that Exemption U/S 54 cannot be denied merely due to mistake by the developer.
-
Filing income tax returns (ITR) within the specified timelines under the Income-tax Act is not just a legal obligation but also crucial fo...
-
Earlier this year, the Mauritius Government approved the amendment to the India – Mauritius tax treaty, aligning it with the proposal of th...
-
This Tax Alert summarizes a recent instruction issued by the SEZ Division, Department of Commerce, clarifying various concerns relating t...
-
This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the issue of denial of input tax credit (ITC) ...
-
Slump sale is transfer of one or more business undertakings for a lump sum consideration, without assigning individual values to the each...
No comments:
Post a Comment