Case Law Details
ACIT Vs AVA landmark LLP (ITAT Delhi)
The capital assets held by erstwhile company transferred to assessee as LLP were considered as transfer and the Assessing officer made addition of Rs.11,37,40,244/- to the return income on allegation of non-compliance of Section 47(xiiib) of the Act. However, the Ld. CIT(A) observed that there is no violation of the provisions of Section 47 (xiiib) (e) of the Act and allowed the appeal.
It can be observed that the grounds no. 1 to 3 are inter-connected and are primarily concerned with controversy that if the profit on sale of plot by assessee is LTCG or business income. In this regard it can be observed that admittedly in the previous years of assessment, the plot was shown by the assessee as investment and the Ld. AO has accepted the same. Thus, the disputed transaction of sale of the plot was rightly held as LTCG by the Ld. CIT(A). Ld. AO had fallen in error in expanding the definition of turnover to extent of including capital gains in the turnover for ascertaining that threshold limit of Rs. 60 lakhs, is maintained by assessee to get benefit of Section 47(xiiib) of the Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
The appeal has been filed by the Revenue against order dated 18.01.2018 in appeal no. 256/2017-18 for the assessment year 2015-16 passed by Commissioner of Income Tax (Appeals)-10, New Delhi (hereinafter referred to as the First Appellate Authority in short ‘Ld. F.A.A.’) in regard to the appeal before it arising out of assessment order dated 31.12.2017 u/s 143(3) of the Income Tax Act, 1961 passed by ITO, Ward 30(4), New Delhi (hereinafter referred to as the Assessing Officer ‘AO’).
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