DCIT, Chandigarh V. Sh. Parminder Singh Dhinda, Chandigarh

ITA 800/CHANDI/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6810 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 06-07-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 11-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAVI SARANGA L
• Assessee Lawyers: VARSHA RANA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, B CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 800/CHD/2017 ASSESSMENT YEAR: 2007-08 THE DCIT, CIRCLE 1(1), VS. SH. PARMINDER SINGH DHI NDSA, CHANDIGARH CHANDIGARH PAN NO. ANQPS6327K (APPELLANT) (RESPONDENT) APPELLANT BY : SH. RAVI SARANGAL RESPONDENT BY : SMT. VARSHA RANA DATE OF HEARING : 21.09.2017 DATE OF PRONOUNCEMENT : 28.09.2017 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE CAPTIONED APPEAL PREFERRED BY THE REVENUE IS AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, [HEREIN AFTER REFERRED TO AS CIT(A)], CHANDIGARH DATED 28.2.2017, WHEREIN THE R EVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE WITHOUT APPRECIATING THE FACTS OF THE CASE. 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS . 1,83,75,000/- MADE ON ACCOUNT OF LONG TERM CAPITAL GAIN. 2. BRIEF FACTS OF THE CASE ON THIS ISSUE ARE THAT A S PER INFORMATION RECEIVED, A HOUSING SOCIETY, NAMED AS THE PUNJABI C O-OPERATIVE HOUSE BUILDING SOCIETY LTD., MOHALI (HEREINAFTER R EFERRED TO AS 'SOCIETY') CONSISTING OF 95 PRESENT AND EX-MLAS OF PUNJAB LEGISLATIVE ASSEMBLY WAS FORMED, WHICH WAS THE OWNER OF 21.2 AC RES OF LAND IN VILLAGE KANSAL, DISTRICT MOHALI. THIS SOCIETY ENTER ED INTO A TRIPARTITE JOINT DEVELOPMENT AGREEMENT (HEREINAFTER REFERRED T O AS 'AGREEMENT') ON 25.02.2007 WITH M/S HASH BUILDERS PVT. LTD., CHA NDIGARH (HEREINAFTER REFERRED TO AS 'HASH) AND M/S TATA HO USING DEVELOPMENT COMPANY LTD., MUMBAI (HEREINAFTER REFERRED TO AS T HDC), BY VIRTUE OF WHICH THE SOCIETY WOULD TRANSFER ITS LAND FOR DE VELOPMENT IN LIEU OF MONETARY CONSIDERATION AND ALSO CONSIDERATION IN KI ND TO THE MEMBERS OF THE SOCIETY. AS PER THE AGREEMENT, EACH MEMBER O F THE PUNJAB CO- OP. HOUSE BUILDING SOCIETY LTD HAVING A PLOT OF 500 SQ. YDS IN THE SOCIETY SHALL RECEIVE RS. 82.50,000/- AS MONETARY C ONSIDERATION. ACCORDINGLY, A TOTAL MONETARY CONSIDERATION OF RS. 1,06,42,50,000/- WAS RECEIVABLE BY ALL THE INDIVIDUAL MEMBERS OF THE SOCIETY TAKEN TOGETHER. IN ADDITION TO THIS, AS CONSIDERATION IN KIND, EACH SUCH MEMBER OWING PLOT OF 500 SQ YD. SHALL RECEIVE ONE F URNISHED FLAT MEASURING 2250 SQ. FT. TO BE CONSTRUCTED BY TDHC. T HE COST OF EACH FURNISHED FLAT @ 4500 SQ FT. HAVING AREA OF 2250 SQ . YD WOULD BE AN AMOUNT OF RS. 1,01,25,000/-. THE MEMBERS OWING PLOT OF 1000 SQ YD. WERE TO GET TWO SUCH FLATS APART FROM THE MONEY AS ENTIRE