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2019 (2) TMI 162 - ITAT CHENNAICalculation of the short term capital gains / short term capital loss - Consolidated computation - invoking the provisions of the section 55A of the Act for the purpose of valuing the cost of acquisition of the property - Held that:- The assessee having sold a single land and building it is not open to the Revenue to break up the transaction and to determine the short term capital gains in respect of the transactions separately. If that is to be done, AO having determined the short term capital gains in respect of land at ₹ 21,75,080/-, would also have to determine the short term capital gains /short term capital loss in respect of the building being [ ₹ 50 lakhs minus ₹ 26,00,180/- = ₹ 23,99,820/- being the value of the building sold; Therefore ₹ 45,60,000 minus ₹ 23,99,820/- = ₹ 21,60,180/- being the capital loss in respect of the building.] The net result would short term capital gains in respect of land at ₹ 21,75,080/- and the short term capital loss in respect of the building at ₹ 21,60,180/-, thereby giving rise to short term capital gains of ₹ 14,900/-. However the original assessment order passed u/s.143(3) of the Act has already determined the short term capital gains of ₹ 3,20,000/-, which would have to be set off, thereby total short term capital loss of ₹ 3,05,100/- would result. This being so, the ld. Assessing Officer is directed to re-compute the short term capital gains / short term capital loss in respect of both the land and building in a consolidated manner and not independently in so far as the property sold is a land and building and both are short term capital assets. - Appeal of the assessee is partly allowed for statistical purposes.
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