SUMERU SOFT P.LTD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) (1)By consent, both the Tax Case Appeals are taken up together for final hearing and are disposed of by this common judgment. (2)The facts narrated in brief, for the purpose of disposal of these appeals, are as follows:-

(2.) Subsequently, the assessment was completed under Section 143[3] read with Section 147 of the IT Act on 31.03.2005, assessing the total income at Rs.40,28,24,591/-. The appellant/assessee Company, aggrieved by the said Order of Assessment dated 31.03.2005, filed an Appeal before the Commissioner of Income Tax [Appeals]-15, [in short CIT [Appeals]], by invoking Section 246A[1] of the IT Act.

(3.) The appellant/assessee Company before the Appellate Authority, contended among other things that the action on the part of the Assessing Officer in bringing to tax, the Long Term Capital Gains, aggregating to a sum of Rs.39,77,60,547/- by applying Section 2[47][v] read with Section 45 of the Act, is per se unsustainable for the reason that the appellant/assessee Company had entered into an unregistered Joint Venture Agreement with M/s.Parsvanath Developers Limited, for developing multi-facility complex consisting of IT/ITES parks, commercial, service and residential apartments and pursuant to the said Agreement dated 10.09.2006, a Refundable Security Deposit of Rs.7,02,54,000/- was received during the Previous Year relating to the Assessment Year 2007-08. It was further contended that the status of the said property till date, remains vacant with no developments took place and the Developer has not carried out any activity relating to construction for the reason that the project may not be successful and therefore, the appellant/assessee Company may be called upon to return the Refundable Security Deposit.