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2017 (4) TMI 1550 - AT - Income TaxExemption u/s 54F - flats received in pursuance of development agreement - HELD THAT:- Respectfully following the decision of coordinate bench, in the case of ITO Vs. Ravuri Kishore & Others in [2017 (4) TMI 120 - ITAT VISAKHAPATNAM] we are of the view that the assessee is eligible for exemption u/s 54F of the Act, in respect of 3 flats received in pursuance of development agreement. CIT(A) after considering relevant facts has rightly held that the assessee is eligible for exemption u/s 54F of the Act for 3 flats - CIT(A) further observed that, since, the legal heirs has sold two flats within 3 years from the date of acquisition, the amount of capital gain exempted in respect of two flats u/s 54F of the Act shall be brought to tax in the A.Y. 2009-10. We do not find any error in the order of the CIT(A). Hence, we inclined to upheld the CIT(A) order and dismiss ground raised by the revenue. Computation of long term capital gain in pursuance of development agreement and adoption of consideration for transfer of property - A.O. has adopted guidance value of the land to determine the consideration received towards transfer of property in pursuance of development agreement - assessee contended that cost of constructed apartments has to be considered for determination of consideration by transfer of property but not the guidance value of the land - HELD THAT:- We find that once the issue has been decided that the assessee is eligible for exemption u/s 54F of the Act and in respect of all the flats, the other issues raised by the assessee with regard to the computation of capital gain and determination of consideration for the purpose of computation of capital gain becomes academic, as the assessee is eligible for exemption towards all the flats received in pursuance of a joint development agreement and this does not matter whatever is the value of flat or land to determine the consideration received for transfer of land. Therefore, we are of the view that determination of sale consideration and computation of capital gain has no impact on the total income, once exemption is allowed towards all flats received in pursuance of development agreement.
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