CIT & Anr. v. Renu Agarwal - Taxpublishers.in

Case Laws Analysis
REFERRED CIT v. Smt. Renu Agarwal 2020 TaxPub(DT) 0321 (Raj-HC)

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The Tax Publishers2019 TaxPub(DT) 6924 (SC)

INCOME TAX ACT, 1961

Section 261 Section 271AAA

Where the department preferred SLP to appeal against the judgment of Rajasthan High Court in CIT v. Renu Agarwal [ITA No. 169/2017, dt. 8-8-2017] : 2020 TaxPub(DT) 321 (Raj-HC), whereby the High Court held that Tribunal had rightly held that assessee treated sale of land transaction as development agreement/JV, that assessee treated this transaction as a JV on the basis of registered development agreement which was duly accepted by the Stamp Duty Authorities, JDA and other Govt. Deptt., that, however, at the penalty proceeding stage, the assessee submitted point to point explanation over the clauses of the Development Agreement which had not been controverted by the AO in penalty order and therefore, the assessee's treatment as to land transaction as joint venture development agreement was bona fide. The Supreme Court dismissed the SLP on the ground of low tax effect.

Appeal (Supreme Court) - Special leave petition - Penalty under section 271AA - Leviability--Accounting treatment of land transaction, whether Joint venture/development agreement sale of land

Department preferred SLP to appeal against the judgment of Rajasthan High Court in CIT v. Renu Agarwal [ITA No. 169/2017, dt. 8-8-2017] : 2020 TaxPub(DT) 321 (Raj-HC), whereby the High Court held that Tribunal had rightly held that assessee treated sale of land transaction as development agreement/JV, that assessee treated this transaction as a JV on the basis of registered development agreement which was duly accepted by the Stamp Duty Authorities, JDA and other Govt. Deptt., that, however, at the penalty proceeding stage, the assessee submitted point to point explanation over the clauses of the Development Agreement which had not been controverted by the AO in penalty order and therefore, the assessee's treatment as to land transaction as joint venture development agreement was bona fide. Held: The Supreme Court dismissed the SLP on the ground of low tax effect.