Case Law Details
Brief about the case
Assessee Company was engaged in the business of property dealing and development of land. During the course of assessment year under consideration it procured a land for development of SEZ. Later, since land was insufficient to develop SEZ, it sold the land to one of its sister concern ‘Indo Global Infotech City Pvt Ltd’ (IGICPL) for a consideration of Rs.23.31 Crore as mentioned in the registered sale deed.
With Mutual consent, the assessee company reduced the sale consideration in its books of account by Rs.1.11 Crore vide a journal entry on the basis of debit note raised by IGICPL to provide an approach road for the land and accordingly IGICPL also reduced the purchase consideration with the said amount claimed on the basis of debit note.
During the assessment proceedings, A.O. rejected the debit note as a valid proof and made an addition to total income of the assessee by Rs.1.11 Crore which is confirmed by CIT(A).
Contention of the Revenue
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