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2019 (6) TMI 531 - AT - Income TaxDeduction u/s.54F - multiple flats acquired under a JDA - HELD THAT:- We are of the view that the facts of the Assessee’s case are identical to the case decided by the Tribunal in the case of Smt.Netravati [2018 (4) TMI 1617 - ITAT BANGALORE] . Respectfully following the same, we hold that the Assessee is entitled to benefit of deduction u/s.54F of the Act, on the 13 flats which he got as his share of built up area from the developer under the JDA. The LTCG brought to tax by the revenue authorities is accordingly directed to be deleted. STCG or LTCG - sale of 14 flats out of 27 flats which were earmarked as share of the assessee under the JDA - HELD THAT:- The share of 27 flats which were to be allotted to assessee was identified and it is shown as Item No. 2 in Schedule-B of the supplementary agreement. The admitted factual position is that the sum of ₹ 1,46,15,100/- was received as consideration of 14 flats by the assessee for giving up his rights in favour of the developer. The said sum was received within a period of three years from the date of JDA. In such circumstances, the 14 flats on which rights were given up in favour of the developer by the assessee were held by assessee for a period of less than 36 months and therefore, those flats assume the character of ‘Short Term Capital Asset’. The act of giving of rights over those 14 flats would amount to a transfer and since such transfer is of a Short Term Capital Asset, the gain on such transfer was rightly assessed by the Revenue authorities as STCG. Fair Market Value (FMV) as on 01-04-1981 of the 14 flats that were given up in favour of the developer - HELD THAT:- It is no doubt true that the Revenue authorities claim for adopting FMV as on 01-04-1981 at ₹ 1/- per Sq. Ft., has the backing of the sale instance. We are however, of the view that in such matters, it is not possible to identify identical property as that of assessee for determination of FMV as on 01-04-1981, giving the benefit of doubt to assessee, We are of the view that it would be just appropriate in the given facts and circumstances of the case to adopt the FMV as on 0104-1981 at ₹ 50/- per Sq. Ft. AO is accordingly directed to compute STCG on sale of 14 flats by the assessee to the developer. Ground partly allowed Capital gain computation - Cost of improvement of land, the cost of improvement to the land which should be taken into consideration while determining the capital gain - HELD THAT:- The admitted position is that no evidence in support of such claim was filed before the Revenue authorities or before the Tribunal. In the given facts and circumstances of the case, we are of the view that there is no merit in Ground raised by the assessee. Accrual of income - refundable deposit under the JDA - HELD THAT:- The admitted factual position stated by the AO in para 7 of the assessment order is that this sum was never returned by the assessee to the developer. In these circumstances, we uphold the orders of Revenue authorities and find no merit in Ground raised by the assessee
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