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2016 (4) TMI 1326 - AT - Income TaxCapital gain computation - Joint Development Agreement - AO adopting the cost of construction as sale consideration - CIT (Appeals) has directed AO to compute the capital gains by considering the sale consideration as the fair market value based on the government record - Held that:- Identical issue has been considered and decided by the co-ordinate bench of this Tribunal in the case of Shankar Vittal Motor Co. Ltd. [2016 (4) TMI 1129 - ITAT BANGALORE] wherein held because at the time of signing JDA the capital gain has to be computed only on the guidance value of the land. Even otherwise, if any capital gains to be accrued in future in favour of assessee after receiving the possession of the property. Certainly that would also be subject to capital gains. Therefore, in our final conclusion valuation of the capital gain should be appropriate to adopt the FMV/asset as deemed consideration, but not cost of the construction. - Decided against revenue
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