VENKATAPPAIAH NAIDU VADDINENI Vs. DCIT

JUDGEMENT

(1.) THESE two appeals are by Assessees against the separate orders of Ld. CIT(A) -III, Hyderabad dated 25.03.2013 under section 263 of the IT Act. Since common issues are involved they are heard together and decided by this common order. We have heard the Ld. Counsel and Ld. D.R. and perused the paper books placed on record.

(2.) THE assessees herein are father and son. They along with Smt. Devasena w/o. Mr. Mahindra Vaddineni and their company M/s. Victory Alloys Steel Limited purchased land admeasuring ac. 85.25 gts between F.Y. 2000 -01 and 2003 -04 at Medchal for an aggregate consideration of Rs. 2,35,36,015. The assessee's share out of above was ac. 11.26 guntas which was purchased entirely in 2003 -04. It was seen that the assessee along with three other land owners (assessee and his son Sri Mahindra Vaddineni & daughter -in -law Smt. Devasena) promoted a venture by the name of 'Fabel County' with an intention to develop the land into plots and towards this end they made suitable applications before the concerned Urban Development Authority. Land use conversion fee as well as lay -out fee, for conversion of the land from agricultural to residential use and also for getting the layout plan approved, was paid. Out of the total land holding of ac. 85.28 guntas the total land developed was ac. 63.10 guntas and 112. Sq. yards. equivalent to 306242 sq. yds. As per the HUDA approved plan, the net plot area was 167802 sq. yds. and the same was sold/agreed to sale and the details are as under:

(3.) ASSESSEES are aggrieved and raised grounds. For the sake of record grounds raised by Mr. Mahindra are extracted hereunder: