{"id":47882,"date":"2024-11-16T19:20:58","date_gmt":"2024-11-16T13:50:58","guid":{"rendered":"https:\/\/itatonline.org\/digest\/ito-v-rishi-construction-2024-204-itd-159-indore-trib\/"},"modified":"2024-11-16T19:20:58","modified_gmt":"2024-11-16T13:50:58","slug":"ito-v-rishi-construction-2024-204-itd-159-indore-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/ito-v-rishi-construction-2024-204-itd-159-indore-trib\/","title":{"rendered":"ITO v. Rishi Construction. (2024) 204 ITD 159 (Indore) (Trib.)"},"content":{"rendered":"<p><strong>\u00a0<\/strong>Assessee is a partnership firm engaged in business of civil construction, sold a land to Shri Govind Reality Pvt Ltd\u00a0 for a sum of Rs. 1.20 crores through an unregistered agreement and received an advance of Rs. 10 lakhs. Shri Govind Reality Pvt Ltd\u00a0\u00a0\u00a0 further sold said land for consideration of Rs. 4.70 crores to\u00a0 Swami Vivekanand Institute of Neurology Neurosurgery &amp; Spine and M\/s Swami Mediservices\u00a0 Pvt Ltd.\u00a0 Sale consideration amount of Rs. 4.70 crores was received by assessee from Swami Vivekanand Institute of Neurology Neurosurgery &amp; Spine and M\/s Swami Mediservices\u00a0 Pvt Ltd.\u00a0 Assessee retained balance due of Rs. 1.10 crores from Shri Govind Reality Pvt Ltd\u00a0\u00a0\u00a0 and passed excess amount to Shri Govind Reality Pvt Ltd. Assessee offered to tax sale consideration of Rs 1.20 crores received from Shri Govind Reality Pvt Ltd\u00a0 as its business turnover. Assessing Officer held\u00a0 that\u00a0 Shri Govind Reality Pvt Ltd\u00a0\u00a0 was not at all owner of assessee&#8217;s land and assessee was trying to swindle amount of Rs. 3.50 crores as income of Shri Govind Reality Pvt Ltd\u00a0\u00a0\u00a0 and eventually trying to evade tax by presenting an unrealistic picture of financial accounting. Therefore, he made additions on account of entire sale consideration of Rs. 4.70 crores as business income of assessee. On appeal the CIT(A) deleted the addition of Rs. 3.50 crores made by the Assessing Officer. CIT(A) enhanced the income under section 251\u00a0 for failure to charge the interest as per the terms of the agreement. Accordingly addition of\u00a0 an amount of Rs. 6.40 lakhs\u00a0 was made on account of notional interest. On cross appeal the Tribunal held that\u00a0 in view of law laid down in case of CIT v. Balbir Singh Maini (2017)86 taxmann.com 94 (SC)\u00a0 an unregistered agreement\u2019 has no efficacy in eyes of law, therefore, Shri Govind Reality Pvt Ltd\u00a0\u00a0\u00a0\u00a0\u00a0 could not be treated as owner of land on basis of impugned unregistered agreement, and accordingly, there was no transfer or sale of immovable property by Shri Govind Reality Pvt Ltd\u00a0\u00a0 Swami Vivekanand Institute of Neurology Neurosurgery &amp; Spine and M\/s Swami Mediservices\u00a0 Pvt Ltd. Accordingly\u00a0 addition made to income of assessee was justified. Tribunal deleted the enhancement made by the CIT(A). (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 28(i) : Business income-Unregistered agreement-Deemed owner-Capital gains-Sale of land-Assessing Officer is justified in making addition on account of entire sale consideration received from ultimate buyer in hands of assessee. [S. 2(47), 4] <\/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":[21],"tags":[],"class_list":["post-47882","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-csi","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47882","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=47882"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47882\/revisions"}],"predecessor-version":[{"id":47883,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47882\/revisions\/47883"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=47882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=47882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=47882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}