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2018 (5) TMI 1023 - AT - Income TaxComputation of long term capital gain - CIT-A directed taking the sale consideration of non agricultural land at ₹ 65 lakh by holding that payments to M/s. Kwality Frozen Foods Pvt. Ltd. and M/s. Magnum Holdings Pvt. Ltd. is covered under section 48(i)- Held that:- The assessee has sold the property for a consideration of ₹ 1,50,00,000/- ,which was purchased along with two other co-owners, entered into an agreement under which the beneficial ownership of M/s. Kwality Frozen Foods Pvt. Ltd. and M/s. Magnum Holdings Pvt. Ltd. was created in 1991. CIT(A) upheld that both these parties were having beneficial interest in the property and allowed the deduction of ₹ 85 lakhs paid to these companies under section 48(i) of the Act. These companies have paid consideration for acquiring beneficial interest in the said property which was also verified by the AO in the remand proceedings. We find that the Ld. CIT(A) has taken a very balanced and correct view of the whole matter and thus allowed the payments made to the said two companies aggregating to ₹ 85 lakhs under section 48(i) of the Act while computing the capital gain and there is no reason to interfere in the said order as the same does not suffer from any illegality. Accordingly, we affirm the order of Ld. CIT(A) by dismissing the appeal of the Revenue.
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