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2018 (2) TMI 180 - AT - Income TaxCapital gains on the transfer of land - Exemption u/s. 54F - Held that:- Capital gains on the transfer of land for development did not arise in the year under consideration and accordingly direct the AO to exclude the capital gains on the transfer of land given for development. Coming to the capital gain on transfer of constructed area, which was considered as a second transaction, as can be seen from the details placed on record, most of the semi-constructed structures in Block-A were sold in August, 2001, which pertains to AY. 2002-03. Therefore, as far as the capital gains on Block-A (entirely) does not pertain to the year under consideration. For sale in Block-B is concerned, as per the details the capital gains arise in AYs. 2002-03, 2003-04 and 2004-05. As stated by the Ld. Counsel for assessee, only five flats in Block-B are sold in financial year relevant to the impugned assessment year. Therefore, any long term capital gains in those five flats on sale of proportionate un-divided share of land and short term capital gain on the sale of super structure/flat can only be brought to tax in the year under consideration. Accordingly, AO is directed to re-work out the capital gains only that extent and the share of assessee, Dr. Sudhir Naik in that can only be brought to tax in his case. Claim of 54F/54 - contention that assessee has sold all the flats allotted to him and therefore, at the time of investing in the new house, he has no other house except this house - Held that:- As seen from the agreements all the apartments received in the development agreement would become one house technically, even though they are of independent units. But, when the claim is made, it was the contention of assessee that all those flats were sold. Therefore, assessee does not own any other house, except the house in which he has invested. This aspect has not been considered by the AO or by the CIT(A) in the correct perspective. Therefore, this matter has to be re-examined by the AO keeping in mind the date of sale of various apartments and the claim u/s. 54F/54. Accordingly, the ground is considered allowed for statistical purposes.
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