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2018 (7) TMI 930 - AT - Income TaxComputation of capital gain in terms of section 50(1) - assessment year - Held that:- AO himself has held that the capital gain should have been taxed in A.Y. 2006-07, since, the transfer of the capital asset in terms of Section 2(47)(v) has taken place in that assessment year - thus the gain derived from transfer of capital asset was to be assessed in A.Y. 2006-07 and not in the impugned assessment year. Also considering the fact that this without prejudice argument was made by the assessee under Rule 27 of the Income Tax Appellate Tribunal Rules, 1963, under which the assessee is entitled to support the order of the CIT(A) on any ground decided against him,the relief is to be restricted to the extent given by the learned CIT(A). Accordingly, we uphold the order of the CIT(A) on this issue. Deduction of claim towards payment made by the builder to the employees for vacating the staff quarters - Held that:- the assessee has failed in its attempt to vacate the employees. Therefore, the buyer stepped in and after paying compensation of ₹ 1.04 crores to the employees he got the staff quarters vacated. Thus, the said amount was adjusted from the agreed sale consideration to be paid to the assessee. The aforesaid facts make it clear that the amount of ₹ 1.04 crores was never received by the assessee from the buyer as the buyer adjusted it from the sale consideration. In any case of the matter, even if it is treated as part of sale consideration the amount of ₹ 1.04 crores have to be treated as expenditure incurred by the assessee for transferring the property, hence allowable under Section 48 of the Act. Thus, looked at from any angle the amount of ₹ 1.04 crores has to be allowed as deduction. Sale of property - bifurcation in to land and building - Long term / Short term capital gain - Held that:- As could be seen from the facts on record, assessee itself has bifurcated the sale of property to land and building portions and offered long term capital gain and short term capital gain on the sale consideration received. However, when the Bench put a query to the learned counsel for the assessee regarding the exact extent of land and building sold and how the valuation of the land portion and building portion was made, the learned counsel for the assessee fairly submitted that the relevant documents have not been filed. Even, the copy of the sale agreement has not been filed before us. Thus, in the absence of these primary and basic facts and documents such as sale agreement as well as the basis for valuation of property, it is difficult for us to render any conclusive finding on the claim made by the assessee - restore the disputed issue to the AO for de novo adjudication
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