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2015 (11) TMI 1272 - AT - Income TaxIncome from long term capital Gains - sale of agricultural land - chargeability to tax - Held that:- The said agricultural land was although registered in the name of the assessee but the same was owned by the partnership firm MCS , the assessee being partner of MCS. The sale proceed of the said land was duly deposited in the bank account of the firm,MCS and the due taxes on capital gain arising from the sale of the said agricultural land being Gut no 405 in Village Bhukum , Taluka Mulshi , District Pune, Maharashtra have been duly paid to Revenue albeit by the partnership firm M/s Marine Container Services although it was technically registered in the name of the assessee. Thus, in nut shell, the assessee has brought on record cogent material to substantiate his contentions that the capital gain arising thereof from sale of the said agricultural land is chargeable to tax in the hands of the partnership firm MCS and the said firm has duly included the said capital gain in the income chargeable to tax and paid due taxes to the revenue. We have observed that no prejudice has been caused to the Revenue as the Revenue has got the due taxes although the same has been paid by the partnership firm MCS and the case of MCS was also processed by the Revenue under scrutiny u/s 143(2) read with Section 143(3) of the Act where by the assessing officer of the MCS has duly mentioned about the inclusion of afore-stated income from capital gain of ₹ 80 lacs earned by MCS in the total assessed income of MCS for assessment year 2009-10. Accordingly, we delete the addition of ₹ 76,57,948/- as made by the assessing officer and as confirmed by CIT(A). We order accordingly. Estimation of annual rental value of house property on notional basis by treating a single combined unit as two distinct properties - Held that:- We have observed that the assessee is the owner of two adjoining flats which are used for residential purposes, the assessee is entitled for exemption u/s 23 of the Act with respect to one flat while the second flat shall be chargeable to tax as per provisions of section 23 of the Act. We have also observed that the assessing officer has brought to tax income from house property on ad- hoc basis without bringing on record any cogent evidence as to the prevailing market rent in the area for which the property is reasonably expected to be let out as per mandate of Section 23 of the Act. Hence, we restore this issue to the file of the assessing officer to determine the annual lettable value being income from house property with respect to one flat based upon the cogent evidence. Needless to mention, the assessing officer shall allow the assessee a reasonable opportunity of being heard in accordance with the principles of natural justice as enshrined in the doctrine of audi alteram partem.before computing annual lettable value of one flat as per Section 23 of the Act We order accordingly.
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