INCOME TAX ACT, 1961

Section 143

Assessment - Additions to income - Value of encroached/litigated land, whether can be taken at NIL -

AO passed an order under section 143(3) wherein various disallowances/additions were made and total income was determined therein at Rs. 61,12,82,240 as against Rs. 43,73,82,600 declared by assessee. With regard to valuation of encroached/litigated land, AO held that value of land could not be taken at NIL and further held that assessee had changed its method of valuation during the year under consideration and accordingly an addition of Rs. 10,42,85,000 was made by AO.It was contended that with reference to valuation of encroached/litigated land, CIT (Appeals) concurred with the view of AO. ITAT had remitted back the matter to the AO. Held: Tribunal considering the decisions of Coordinate Benches of the Tribunal itself in assessee's own case for the assessment year 2007-08 in ITA No. 1267/JP/2010 & 1387/JP/2010 vide Order dated 24-6-2011, set aside the issue to the record of AO for fresh adjudication after conducting a proper verification and enquiry. Assessee was also directed to produce all the relevant facts in respect of each and every piece of land under litigation and encroachment so as to reveal the actual status of the land for the purpose of the determination of value. Moreover, in the subsequent assessment year viz. assessment year 2007-08 in the case of assessee, the Tribunal vide Order, dated 24-6-2011, restored back the matter to AO for deciding the issue and even in subsequent years, i.e., 2009-10, 2010-11, 2011-12, 2012-13, vide Order, dated 23-2-2018, the Tribunal set aside this issue to the record of AO for deciding the same afresh in terms of the directions as given by the Tribunal in the assessment year 2007-08 and no appeal had been filed against the aforesaid orders by the assessee before this Court or before the Supreme Court.

REFERRED : CIT v. M/s. Excel Industries Ltd. and Mafatlal Industries (P) Ltd. (2013) 358 ITR 295 (SC) : 2013 TaxPub(DT) 2414 (SC) CIT, West Bengal II v. Hindustan Housing and Land Development Trust Limited (1986) 161 ITR 524 (SC) : 1986 TaxPub(DT) 1706 (SC) CIT, BombayCity I v. Messrs. Shoorji Vallabhdas and Company (1962) 46 ITR 144 (SC) : 1962 TaxPub(DT) 0307 (SC) CIT v. Wolkem India Ltd. (2009) 315 ITR 211 (Raj.) : 2009 TaxPub(DT) 1299 (Raj-HC) M/s. Rajasthan State Industrial Development & Investment Corp. Ltd. v. The ACIT2018 TaxPub(DT) 2928 (Jp-Trib) M/s. Rajasthan State Industrial Development & Investment Corp. Ltd. v. The DCIT and ACIT, Circle-6, Jaipur. and Vice-Versa 2018 TaxPub(DT) 5813 (Jp-Trib) M/s. Rajasthan State Industrial Development & Investment Corporation Ltd. v. The Addl. CIT Range-6 Jaipur and The DCIT Rang-6 Jaipur v. M/s. Rajasthan State Industrial Development & Investment Corporation Ltd. [ITA No.1267/ JP/2010, ITA No.1387/ JP/2010, dt. 24-6-2011].

FAVOUR : Matter remanded

A.Y. : 2006-07

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