Case Law Details
Archean Realty P. Ltd. Vs DCIT (ITAT Chennai)
ITAT Chennai held that as per the provisions of Sec.199(3) of the Act r.w.r.37BA(1) of the Income Tax Rules, 1962, credit for TDS shall be given for assessment year for which such income is assessable.
Facts- During the course of assessment proceedings, it is seen from the P&L A/c that the assessee company had debited a sum of Rs.14.77 Crs. towards loss on sale of land and disallowed the same in the statement of computation of total income. It was further noted that the assessee had claimed long term capital loss of Rs.19,94,46,822/- towards sale of land.
The AO called upon the assessee to furnish necessary details. In response, the assessee company has submitted copy of the agreement dated 12.06.2013 with M/s.Appaswamy Real Estate Ltd., towards sale of property at Porur Village, Ambattur Taluk, Thiruvallur District, comprising of 1.25 acres, for a consideration of Rs.40 Crs. The assessee had also filed ledger extracts of sale of land in the books of accounts and necessary consideration received from the buyer and claimed that although, full consideration has been received in the FY relevant to the AY 2014-15, but possession of the property has been handed over in all respects to the buyer in the FY 2014-15 relevant to the AY 2015-16, and thus, it has computed long term capital loss from sale of property for AY 2015-16.
AO, however, was not convinced with the explanation of the assessee and according to the AO, entire sale consideration of Rs.40 Crs. was received by the assessee in the FY 2014-15 relevant to the AY 2014-15. The last payment was received on 28.03.2014. Therefore, the AO opined that transfer of property took place in terms of provisions of Sec.2(47)(v) of the Act, for AY 2014-15 only, and thus, rejected arguments of the assessee and disallowed long term capital loss claimed amounting to Rs.19,94,46,822/-.
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