Assessee-developer, sold a land under MOU dated 2-2-2012 for consideration of Rs.120 crore. The\u00a0 assessee offered only a sum of Rs.100 crore for tax for assessment year 2012-13 as MOU provided that a sum of Rs. 20 crore would be paid by purchaser on execution of sale-deed after getting plan sanctioned and on inclusion of name of purchaser in 7\/12 extract and assessee was not able to meet conditions of MOU during subject assessment year. AO\u00a0 taxed entire sum of Rs. 120 crore in the relevant assessment year. Tribunal deleted the addition. On appeal by the revenue the Court held that\u00a0 on facts, it was found that amount of Rs. 20 crore was not payable in relevant assessment year as assessee had not completed its obligation under MOU entirely, and that Rs. 20 crore were offered to tax in subsequent assessment year and also taxed. Accordingly the Tribunal was justified in holding that sum of Rs. 20 crore was not taxable in subject assessment year.\u00a0 Followed\u00a0 Morvi Industriees\u00a0 Ltd v CIT (1971) 82 ITR 835 (SC) CIT v. Shoorji Vallabadas & Co ( 1962) 46 ITR 144 (SC) CIT v. Nagri Mills Co. Ltd. (1958) 33 ITR 681 (Bom.)(HC)\u00a0\u00a0 (AY. 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 5 : Scope of total income\u2013Accrual of income\u2013Time of accrual-Year of taxability-Developer of land-Part of sale consideration was payable by purchaser on completion of assessee’s obligation under MOU-Not liable to tax relevant assessment year. [S. 4, 145] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10740","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Ne","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10740","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10740"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10740\/revisions"}],"predecessor-version":[{"id":10741,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10740\/revisions\/10741"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}