Ganesh Housing Corpn.Ltd.,, Ahmedabad vs The Acit., Circle-4,, Ahmedabad on 15 May, 2019
The A.O was not justif ied in assessing the income in respect of sal e deeds
executed as it would not give rise to any income assessable to tax during
the year under consideration since the said income was charged with
several obligations which the assessee was to discharge before the
delivery of plots to the buyers in terms of the sale deeds itself. The
assessee was obliged to carry on various developmental works not only
within the sold plots but also to provide the common facilities for the
entire park, and then only deliver the possession of the plots sol d to the
parties". The Hon' ble ITAT Hyd., in the case cited supra has also
followed the principles laid down by the Apex Cu7ourt in the case of
Calcutta Co. Ltd. Vs. C1T 37 1TR 1.