Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 1549 - AT - Income TaxDetermination of long term capital gain on sale of a plot - addition in respective hands of co-owner of property - reference to the DVO for determining the fair market value of the assets as on 01.04.1981 - Held that:- Hon’ble Gujarat High Court has considered this aspect in the case of Gaurangiben S. Shodhan [2014 (2) TMI 78 - GUJARAT HIGH COURT] held that the Assessing Officer has no power to make a reference if the value shown by assessee is not less than fair market value. As value shown by the appellants of the property as on 01.04.1981 is considered then it was not less than fair market value and reference cannot be made. As far as the amendment carried out in section 55A is concerned, it is with effect from 01.07.2012 i.e. by finance Act 2012 the transaction taken place in F.Y. 2010-11 relevant to assessment year 2011-12 and the amended provision would not be applicable on this transaction. Addition u/s 40A - assessee has borrowed loan @ 12% and he has given loans @ 6% to the persons covered under section 40A(2)(b) - Held that:- Section 40A(2)(b) contemplates that if an assessee incurred expenditure for availing the services or purchase of a goods from the persons mentioned in sub-clause-(b) and make them payments over and above the market price then the expenditure incurred over and above the market price would be disallowed. The assessee has given interest bearing loan funds to the HUF where he is the Karta. Therefore section 40A(2)(b) has rightly been applied by the Assessing Officer and he has rightly made the disallowance. This ground of appeal is rejected.
|