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2017 (1) TMI 259 - AT - Income TaxLevy of capital gains - eligible transfer - co-owners - assessment year - Held that:- We find that the assessee had placed the registered valuer’s report , the contents of which were not controverted by the ld AO that the market value of the property as on the date of receipt of the possession thereof and indexed cost thereof was more than the consideration received on sale of the property during the assessment year in question. We find that the assessee had placed the computation of capital gains based on this valuation report wherein the net result only resulted in a capital loss of ₹ 84,622/- as elaborated in the ld CITA order. The ld CITA observed that this was not disputed by the ld AO in the remand report. The registered valuer had determined the market value of the property sold at ₹ 80,80,000/- at the time of construction. The ld AO was not able to bring on record any evidence to suggest that the market value was not correct. Therefore, the ld CITA held that the market value based on registered valuer’s report cannot be brushed aside. We find that the ld CITA had rightly observed that the transfer within the meaning of section 2(47) of the Act had already happened in the year 1997 itself and the execution of the sale deeds in the financial year 2006-07 is only the culmination of the transfer that took place pursuant to development agreement dated 16.7.97. We also find lot of force in the alternative argument of the assessee, without prejudice, that as per the computation placed on record by the assssee, there is no resultant capital gains that could be taxed in the year under appeal. Hence we hold that the ld CITA had rightly deleted the levy of capital gains and had rightly held that the transfer had not taken place in the year under appeal both on law as well as on facts. - Decided in favour of assessee
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