Law: Income Tax Act, 1961

Section: 28(i)

JUDGMENT 1. The following question has been referred for the opinion of this court by the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh, arising out of its order dated March 14, 1989, in I.T.A. Nos. 237, 238 and 715/ Chandi/85, in respect of the assessment years 1980-81 and 1982-83: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the amount received by the assessee-colonizer by way of advances or earnest money as a result of agreements to sell plots, did not constitute revenue receipts in its hands, as no sale deed had yet been executed ?" 2. The facts noticed by the Tribunal are that the assessee M/s. Dhir and Company Colonisers (P.) Limited is a private limited company. For the assessment years under reference, trading additions of Rs. 28,770, Rs. 98,700 and Rs. 1,93,084 were made by the learned Income-tax Officer on the basis that these amount represented income of the assessee from colonization business. The facts in regard to the same are not in dispute. The assessee had colonisation business. It had developed four colonies in Ludhiana, namely, Asha Puri (and its extension) Krishna Nagar, Ram Park and Sawan Park. The land was purchased from 1973 to 1975 from various persons. The land was registered in the name of the assessee. Thereafter, it was developed into plots and sought to be sold on instalment basis. Some of the sales were registered in December, 1975. In the balance cases, registration could not be effected on account of the restrictions placed by the Urban Land (Ceiling and Regulation) Act, 1976. Though the plots were not registered, the learned Income-tax Officer took the view that the possession having been handed over, the amounts received in respect of such plots represented trading receipts. 3. The matters were thereafter taken in appeals by the assessee and the learned Commissioner of Income-tax (Appeals) vacated the additions made by the learned Income-tax Officer for all the years. 4. The issue was thereafter, for all these years, brought by the Revenue before the Tribunal. The Bench dismissed the appeals with the following observations: "5. We…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492