Itta/338/2011 Of Ahura Holdings v. Deputy Commissioner Of Income Tax

THE HONOURABLE SRI JUSTICEGODA RAGHURAMANDTHE HONOURABLE SRI JUSTICEN. RAVI SHANKAR ITTA No. 338 of 2011 Dated: 11-10-2011 Between Ahura Holdings, Hyderabad And The Deputy Commissioner of Income Tax,Central Circle-2, Hyderabad. …Appellant …Respondent JUDGMENT:(Per Hon’ble Sri Justice Goda Raghuram) This appeal under Section 260A of the Income Tax Act, 1961 (forshort ‘the Act’) is directed against the order of the ITAT, HyderabadBench ’A’ dated 26-11-2010 in ITA No. 362/Hyd/2010 pertaining to theAssessment Year 2003-04. The appellant firm is engaged in the business of real estate. Asearch and seizure was conducted at the residential-cum-businesspremises of Sri Gopal Lal Badruka, partner of the assessee firm underSection 132 of the Act on 27-6-2006 and it was revealed that theassessee was actively engaged in developing a property at No. 205,Tarbund, Secunderabad Cantonment. The assessee eventually filedreturn for the Assessment Year 2003-04 admitting a loss ofRs.1,73,191/-. By the order of assessment dated 29-12-2008 the lossclaimed was disallowed for the reason that the registration of GPA inrespect of the development of property in question was entered into inApril, 2003 relating to the Assessment Year 2004-05 and not duringthe Assessment Year 2002-03 which was under consideration; and forthe further reason that the layout sanction was also obtained by SriGopal Lal Badruka as the GPA, for part of the land from theSecunderabad Cantonment only in April, 2003, beyond theAssessment Year in question. After an unsuccessful appellatecampaign, the appellant preferred a further appeal to the Tribunalwhich concurred with the findings of the Assessing and Appellateauthorities that the appellant commenced business only during theAssessment Year 2004-05 and therefore could not claim loss for theprevious assessment year. No question of law let alone a substantial question of law arises for consideration in this appeal. It is accordingly dismissed at thestage of admission. ______________________ GODA RAGHURAM, J 11[th] October, 2011 GRR ______________________N. RAVI SHANKAR, J