Appeal details
Counselvise Citation
[2016] 124 COUNSELVISE.COM (IT) 3834 (ITAT-HYDERABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 month(s) 1 day(s)
Appellant
Respondent
Appeal Type
Miscellaneous Application
Pronouncement Date
29-01-2016
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Assessment Year
2005-2006
Appeal Filed On
28-12-2015
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI P.MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER M.A. NO. 03/HYD/2016 (IN ITA NOS. 11 & 23/HYD/2014 ASSESSMENT YEAR: 2005-06 GULF OIL CORPORATION LTD., HYDERABAD. PAN AABCG8433B VS. ADDL. COMMISSIONER OF INCOME-TAX, RANGE 2, HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI Y. RATNAKAR REVENUE BY : SHRI B. KURMI NAIDU DATE OF HEARING : 22 -01-2016 DATE OF PRONOUNCEMENT : 05-02-2016 O R D E R PER S. RIFAUR RAHAMAN, A.M.: THIS MISCELLANEOUS APPLICATION IS FILED BY ASSESSE E SEEKING RECTIFICATION OF MISTAKE CREPT INTO THE ORDER OF TH E TRIBUNAL IN ITA NOS. 11 & 23/HYD/2014, DATED 30/11/2015. 2. IN THE M.A. IT WAS STATED THAT AT PARA 3.6, THER E ARE FACTUAL ERRORS WHICH NEED RECTIFICATION. THE CASE OF THE AS SESSEE IS THAT IT HAS AGREED TO SELL THE LANDS UNDER AGREEMENTS WHICH ARE UNREGISTERED. SINCE THE AGREEMENTS ARE UNREGISTERED , SECTION 50C IS INAPPLICABLE TO UNREGISTERED DOCUMENTS ON THE BASIS OF THE STATUTORY PROVISIONS THEN IN VOGUE FOR THE RELEVANT AY 2005-0 6. IT WAS ALSO STATED THAT AT PARA 18.1 OF THE ORDER ALSO, THE TRI BUNAL ACCEPTS THAT THERE IS NO DISPUTE THAT THE AGREEMENT TO SELL AND THE SUPPLEMENTAL AGREEMENTS ARE ALL UNREGISTERED. HOWEVER, AT PARA 3 .6 IT IS STATED AS IF THE AGREEMENTS WERE REGISTERED WHICH IS FACTUALL Y NOT TRUE. IT WAS, 2 M.A. NO. 03 /HYD/2016 GULF OIL CORPORATION LTD., HYD. THEREFORE, SUBMITTED THAT THE PARA 3.6, AT PAGE 5 S UB-PARA (III) AND AT PARA 12 AT PAGE 11, THE WORDS REGISTERED AND REGIST RATION MAY BE RECTIFIED ACCORDINGLY. 3. AFTER GOING THROUGH THE ORDER OF THE TRIBUNAL, A S POINTED OUT BY THE ASSESSEE, WE AGREE THAT THERE IS A MISTAKE IN T HE ORDER OF THE TRIBUNAL AT THE PLACES MENTIONED AS ABOVE AND THE S AME ARE RECTIFIED AS UNDER: 3.1 PARA 3.6 OF THE ORDER MAY BE READ AS UNDER: 3.6 ASSESSEE HAD TOTAL LAND OF 29015.77 SQ. METE RS AND OUT OF WHICH IT SOLD 14507.885 SQ.MTS ON 28.06.2003, W HICH WAS IDENTIFIED AS A AND BALANCE OF LAND AS B. THE BALANCE LAND WAS SOLD AGAIN IN TWO PARTS, WHICH WAS IDENTIFIED AS B1 - 10012.483 SQ.MTS AND B2- 4495.372 SQ.MTS. DURING THE CURRENT YEAR UNDER CONSIDERATION, ASSESSEE HAD SOL D ONLY 7551.2 SQ.MTS FOR THE CONSIDERATION OF RS. 18.50 C RORES AND BALANCE OF B1 LAND WAS SOLD FOLLOWING YEAR. ASSESS EE OFFERED AS SALES CONSIDERATION FOR COMPUTING CAPITAL GAIN FOR AY 2005-06 RS. 18.50 CRORES AND IN AY 2006-07 RS. 6.0 3 CRORES. WHEREAS THE AO OBSERVED FROM THE SALE AGREEMENT TH AT ALL THE LAND IDENTIFIED AS B I.E., BOTH B1 AND B2, AGREE D TO SELL BY THE ASSESSEE TO THE DEVELOPER. SINCE THE AGREEMENT TO SELL WAS ENTERED FOR WHOLE LAND, IT AMOUNTS TO TRANSFER. AO ALSO OBSERVED THAT THE POSSESSION WAS HANDED OVER AS PA RT PERFORMANCE OF THE AGREEMENT. ACCORDING TO AO, IT IS IMMATERIAL WHEN THE CONSIDERATION RECEIVED. ACCORDINGLY AO BR OUGHT TO ASSESSMENT THE WHOLE LAND COMPRISING OF B1 AND B2. 3.2 AT PAGE 5 SUB-PARA III) ALSO MAY BE READ AS UND ER: III) CIT(A) AGREED WITH THE ARGUMENT OF THE ASSESS EE AND DIRECTED THE AO TO CONSIDER THE SALE OF LAND ONLY TO THE EXTENT OF THE LAND WHICH WAS TRANSFERRED DURING THE YEAR UNDER 3 M.A. NO. 03 /HYD/2016 GULF OIL CORPORATION LTD., HYD. CONSIDERATION I.E., TO THE EXTENT OF 7551.2 SQ.MTS BUT DIRECTED THE AO TO CONSIDER THE SRO VALUE AS ADOPTED BY HIM UNDER SECTION 50C IN THE ASSESSMENT ORDER. 3.3 PARA 12 AT PAGE 11 OF THE ORDER MAY BE READ AS UNDER: 12. LD DR RELIED ON THE ASSESSMENT ORDER AND SU BMITTED THAT AGREEMENT FOR SALE WAS MADE TOGETHER TO SELL THE W HOLE LAND IDENTIFIED AS B1 AND B2, THE LANDS WERE ALSO HANDE D OVER TO THE DEVELOPER AS WELL AS THE PAYMENTS WERE RECEIVED SUBSEQUENTLY. THE CONSIDERATION FOR WHOLE LAND MUS T BE CONSIDERED FOR CALCULATION OF CAPITAL GAIN. 20. IN THE RESULT, M.A. IS DISPOSED OF, AS ABOVE. PRONOUNCED IN THE OPEN COURT ON 5 TH FEBRUARY, 2016. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAHMA N) JUDICIAL MEMBER ACCOUN TANT MEMBER HYDERABAD, DATED: 5 TH FEBRUARY, 2016 KV COPY TO:- 1) GULF OIL CORPORATION LTD., P.B. NO. 1, SANATH NA GAR (I.E.), KUKATPALLI., HYDERABAD 500 018 2) ADDL. CIT, RANGE 2, HYDERABAD 3) DCIT, CIRCLE 2(3), HYDERABAD 4) CIT(A)-III, HYDERABAD 5) CIT-II, HYDERABAD 6) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.
