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2013 (8) TMI 932 - AT - Income TaxCapital gain - assessment year - Held that:- No capital gain can be charged in the impugned assessment year and since such decision of the CIT(A) has not been challenged by the Department, the other issue with regard to adoption of rate of construction has actually become inconsequential as it is purely academic in nature. Even otherwise also, the finding of the CIT(A) with regard to cost of construction adopted at ₹ 450/- per sq.ft. for car parking is reasonable as in our view the rate adopted by the Assessing Officer is high and excessive and without any basis. The Assessing Officer without bringing on record any comparable case has simply adopted the rate, out of his own imagination. In the aforesaid circumstances, we do not find any reason to interfere with the order of the CIT(A) in this regard. Accordingly, we uphold the order of the CIT(A) and dismiss the grounds raised by the revenue Transfer within the meaning of section 53A of Transfer of Property Act read with section 2(47(v) of the IT Act - Held that:- it is a fact on record that the developer was handed over the possession of the property after obtaining permission from GHMC on 05/08/2008 and further the second development agreement executed on 11/02/2011 with RBD Legend, though, is an unregistered document, however, clearly reveals that the earlier developer i.e. Legend Estates Pt. Ltd. had not only taken possession of the property but has also started construction of the project. Furthermore, the registered development agreement with the developer M/s Legend Estates P. Ltd. has not been cancelled. Therefore, it cannot be said that the developer M/s Legend Estates P. Ltd. has backed out or expressed its unwillingness in carrying out the development activity. The development agreement executed on 11.02/2011 being an unregistered document it cannot have much relevance. In the aforesaid circumstances, therefore, the conclusion arrived at by the CIT(A) to the effect that there is a transfer within the meaning of section 53A read with section 2(47)(v) of the Act, cannot be held to be without any substance.
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