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2011 (4) TMI 855 - ITAT MUMBAIComputation of Capital gain - Held that:- As Assessee has transferred the land and building to the developer through a document, which has been registered through State Registration Authorities therefore, there is transfer of a capital asset, the capital gain on which is chargeable to income tax - Therefore, appeal is dismissed accordingly. Valuation of development right - Provisions of sec. 50C - Held that:- As already held there is transfer of land and building to the developer and therefore, provisions of sec. 50C are clearly applicable - Thus, stamp duty valuation is applied to development rights. Tax liability - Held that:- As find that the assessee has not produced any documentary evidence to substantiate that in the case of spouse, who is a co-owner, no tax liability has been fastened - Therefore, find no merit in the submission of the assessee that he being other co-owner, cannot be burden to tax liability - Since the assessee has failed to substantiate with evidence that no tax liability had been attached in the case of the spouse of the assessee, therefore, this ground by the assessee is dismissed. Valuation - Actual cost of land - Held that:- As the assessee has valued the cost of land as on 1.4.81 at Rs. 1,40,233/-, the same is on the basis of valuer's report in the year 1985. The assessee has not produced any documentary evidence before the AO to establish the actual cost of land that needs deduction from the consideration received - Thus, the value adopted by the AO at Rs. 1,12,186/-, hence justified. Valuation - Indexation of building - Held that:- As the balance sheet of the assessee shows the value of the building at Rs. 7,43,534/- However, no justification/reason has been given by the Assessing Officer as to how and why he has not considered the indexation of the building, which is as per the balance sheet, while calculating the capital gain - The CIT(A) has also not dealt with this issue - Thus, it deem proper to restore this issue back to the file of the Assessing Officer to pass a speaking order on this issue in accordance with law - Thus, appeal is accordingly allowed for statistical purpose. Land and the bungalow - Held that:- Regarding the working of capital gain filed by the assessee at Rs.39,32,160/-this ground needs to go back to the file of the Assessing Officer for fresh computation of capital gain - Accordingly, appeal is allowed for statistical purpose. Capital gain or not - Held that:- Money paid by a builder to a housing society or private individual for redevelopment of the property received by me from the developer for redevelopment of my property - There is a transfer of existing land and building - It was demolished by the builder for fresh construction - The documents were registered by the State Registration Authorities - Therefore, the appeal of assessee, is dismissed.
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