Where assessee in support of loan transactions, submitted confirmation letters from creditors, impugned addition made under section 68 was to be set aside

IT : When developer has not performed or there is unwillingness to perform his part of contract, it cannot be concluded that there is transfer of capital asset in terms with section 2(47)(v) read with section 53A of Transfer of Property Act 1882, merely because assessee has entered into a development agreement or even handed over possession of land to developer during assessment year in question
IT : Where assessee in support of loan transactions, submitted confirmation letters from creditors, impugned addition made under section 68 was to be set aside and, matter was to be remanded back for disposal afresh
■■■
[2014] 50 taxmann.com 178 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'B'
Assistant Commissioner of Income-tax, Central Circle-5, Hyderabad
v.
R. Srinivasa Rao*
B. RAMAKOTAIAH, ACCOUNTANT MEMBER
AND SAKTIJIT DEY, JUDICIAL MEMBER
IT APPEAL NOS. 1703,1786 TO 1789 & 1806 TO 1809 (HYD.) OF 2012
[ASSESSMENT YEAR 2008-09]
AUGUST  28, 2014
I. Section 2(47) of the Income-tax Act, 1961 - Capital gains - Transfer (Land dealings) - Assessment year 2008-09 - Whether when developer has not performed or there is unwillingness to perform his part of contract, it cannot be concluded that there is transfer of capital asset in terms with section 2(47)(v) read with section 53A of Transfer of Property Act, 1882, merely because assessee has
entered into a development agreement or even handed over possession of land to developer during assessment year in question - Held, yes [Para 11] [In favour of assessee]
II. Section 68 of the Income-tax Act, 1961 - Cash credit (Loans) - Assessment year 2008-09 - Whether where assessee in support of loan transactions, submitted confirmation letters from creditors, impugned addition made under section 68 was to be set aside and, matter was to be remanded back for disposal afresh - Held, yes [Para 23] [Matter remanded]