Addition in hands of register owner of land unsustainable as sales and profit booked by real owner

ITO Vs Time Bound Contracts Pvt. Ltd. (ITAT Delhi)

ITAT Delhi held that addition in the hands of register owner, on the basis of AIR information without considering the fact that sales and profit thereon is booked by M/s. Parsvanath Developers Ltd. who are having real rights on the land, is unsustainable in law.

Facts-

The assessee is a resident corporate entity stated to be engaged in the business of purchase of land, and immovable property and undertake development and construction of real estate projects.

In course of assessment proceeding, AO noted that the assessee has not offered any revenue from business operations. AO observed that the opening Work in Progress (WIP) amounting to Rs.1,46,43,770 as on 01.04.2012 has been shown as a transfer to developer company and WIP as on 30.01.2013 has been shown as nil.

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