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Both are Revenue's appeals for the A.Y 2010-11 and 2009- 10 respectively. Since common issue is involved, these are heard together and disposed-of by this common order.

2. Brief facts of the case are that the assessee, which is engaged in the business of Real Estate, filed its return of income M/s. Kamineni Builders :- 2 -:

for the AY. 2010-11 originally on 21-03-2011 admitting taxable income of Rs. 49,84,618/-. Subsequently, the assessee filed a revised return of income on 18-05-2011 declaring taxable income of Rs.49,50,990/-. The case was selected for scrutiny under CASS to verify the income arising to the assessee on sale of a property. During the assessment proceedings u/s 143(3) of the Act, the AO observed that the assessee firm is carrying on business in real estate by purchase of land and sale thereof after division and development of plots and during the course of such business, has admitted receipts from the development of land at Rs. 3,90,64,918/-, receipts from sale of land at Rs. 1,89,14,882/- apart from closing stock of Rs. 4,15,50,289/-, but that the assessee had admitted a net profit of Rs. 47,96,566/- only, though the net profit derived by it was Rs. 4,08,42,873/- and that the balance profit of Rs. 3,60,46,308/- was not offered for taxation. The assessee was therefore, asked to explain as to why the remaining profit of Rs. 3,60,46,308/- was not offered to tax in the hands of the assessee firm. The assessee filed a letter dated 27- 02-2013 stating that the assessee entered into an MOU on 22-03- 2007 with M/s. Sindya Infrastructure Development Company Private Limited (herein after referred as SIDCPL or Company), Chennai, as per which, the said company has a charge on the gross receipts of the assessee i.e. 87.12% of the gross receipts after deducting cost of land development charges and brokerage for purchase of land and hence, SIDCPL has an overriding title over the said income and cannot be treated as income of the assessee.

6. Ld. CIT (A) granted relief to the assessee by accepting the 'principle of diversion of income by overriding title' and after observing that similar payment in the AYs. 2007-08 to 2010-11 has been allowed by the AO and therefore, the 'rule of consistency and uniformity' has to be followed. The order for AY 2009-10 is extracted for the sake of brevity.

"As per the MOU between the appellant and Sindya Infrastructure Development Co. Pvt. Ltd. dated 22-3-2007, the appellant company received Rs.8 crores from Sindya Infrastructure Development Company Pvt. Ltd., as under:

             29-06-2006             -      2 crore
             31-6-2006              -      6 crore

After receiving the money from Sindya Infrastructure Development Company Pvt. Ltd. the appellant entered MOU with HDFC for development of land on 22-3-2007.

It is pertinent to mention that the amount paid by Firm of Rs 1,57,01,809 paid to the company was shown as income of the company. However the company did not pay any taxes in view of brought forward losses.

It is pertinent to mention that the same issue was decided in favour of the appellant by the CIT(Appeals) for A.Y. 2010-11 in appeal No. 0095/13- 14/ CIT(A)-VI dtd12-11-2014 where in the CIT(A) observed that :

10. We have considered the rival contentions and perused the documents placed on record in the form of paper book. Before adverting to the rival contentions and adjudication of the issue, it is necessary to consider the following facts:

M/s. Kamineni Builders :- 8 -:

a. There is no dispute with reference to the fact that the said M/s. Sindya Infrastructure Development Company (P) Ltd., (SIDCPL) has advanced funds to assessee-firm on 28-06-2006 to an extent of Rs. 2 Crores and on 31-07-2006 to an extent of Rs. 6 Crores. Assessee has entered into MOU on 22-03-2007 wherein it was agreed that the appellant could carry out the development of land into plots and sell the same and distribute the profit (after expenditure) in the ratio of 87.12% to the said SIDCPL, balance 12.88% to be retained by the assessee-firm. As seen from the financials for the period 01-04-2006 to 31-03-2007, assessee's gross receipts on development of land and sale of land were to the tune of Rs. 1,05,36,668/-, having closing balance of Rs.