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2017 (9) TMI 1696 - HC - Income TaxCapital gain computation - Value of sale consideration - Held that:- The assessee has sold the land to 32 persons as stated whereas the Ao has mainly relied upon the statement of Smt. Mithlesh Gupta which has no evidentiary value. The assessee Shri LK. Gupta, Chartered Accountant had submitted the affidavits of 7 persons which were admitted by the ld. CIT(A) as an additional evidence and the AO was required to verify the veracity of the same as per direction of the CIT(A). The remand report was submitted by the AO and counter comments by the assessee at PB 52. The AO in the remand proceedings has taken the statement of 5 persons except Shri Gauri Shankar and Shri Balwant Kumar whose statements were recorded later on and are on record. All the 7 persons have confirmed to have purchased the land ₹ 200/- per sq. yard and no defect in the same has been pointed out by any of the authorities below. We appreciate the submissions of the assessee Shri L.K. Gupta, that other purchasers of the land have not been examined by the AO and no step has been taken in this regard by any of the authorities below. Therefore, in such circumstances and facts of the case, the AO is not justified in taking the value of the land at ₹ 900/-per sq. yard. CIT(A) who has gone a step ahead to invoke the Provisions of Section 145(3) of the Act which was not even invoked by the AO and valuing the rate of sale of land at ₹ 600/- per sq. yard is without any material on record and purely on surmises and conjectures. Rate of sale of land adopted by the assessee is directed to be accepted. Therefore, capital gain as declared by the assessee is directed to be accepted. - Decided in favour of assessee
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