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2014 (7) TMI 558 - BOMBAY HIGH COURTReference u/s 55A of the Act not directed - Valuation for computing capital gain - Cost of construction of flats – Flats given to tenant without sale consideration – Assessee granted additional FSI to compensate – Held that:- The Tribunal has held that the AO did not refer the matter to the valuation officer - the tenanted property fetches low price - The tenanted property was purchased by the assessee but the same remained tenanted - None of the tenants had left the property as on 1st April, 1981- The AO added 15% to the purchase cost and tried to determine the fair value – thus, no substantial question of law arises for consideration – Decided against Revenue. The entire expenditure was incurred by him on construction of such tenaments and for handing over to the tenants - he was to be compensated by F.S.I. so as to enable him to reimburse himself the cost of construction for rehabilitating to the tenant, does not mean that the expenditure needs to be deleted straightway - revenue has failed to bring any material which would indicate as to how much F.S.I. was made available and placed at the disposal of the assessee, how much was utilized in the form of making for construction of buildings for sale in open market and how much was actually sold and the income derived - in the absence of the vital material, the CIT and the Tribunal concurrently held that the deduction was totally unjustified – Decided against Revenue.
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