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2020 (12) TMI 780 - AT - Income TaxDeemed capital gains by invoking the provisions of section 50D - capital gain arising from the said transfer of flats - Whether only document evidencing the transfer in the form of self-made affidavit did not indicate any consideration for transfer, the consideration received or accruing as a result of transfer of the rights of the two flats was not ascertainable and could not be determined? - HELD THAT:- As observed that even though the consideration for transfer of two flats received or accruing to the assessee was not mentioned in the affidavit filed by the assessee evidencing the said transfer, copies of accounts of the concerned transferees were produced by the assessee to show the consideration for transfer of the two flats as agreed between the parties. We, therefore, do not agree with the contention of the revenue that there was no evidence produced by the assessee-company to show the consideration received or accruing as a result of the transfer of the two flats. As matter of fact, the said consideration so agreed was taken into consideration by the assessee-company for computing the capital gain arising from the transfer which was duly declared in its return of income and as rightly contended by assessee, there was no justification on the part of the authorities below to doubt or dispute the said consideration as claimed to be mutually agreed by the assessee-company to arrive at the conclusion that the consideration received or accruing as a result of the transfer of the two flats was not ascertainable or could not be determined without even making any inquiry whatsoever with the concerned transferees. Provisions of section 50D are not applicable in this case and the impugned addition made by the Assessing Officer and confirmed by the ld. CIT(Appeals) by invoking the said provision is not sustainable. We accordingly delete the same and allow Ground No. 1 of the appeal. Disallowance u/s 14A - disallowance so made cannot be added while computing the book profit of the assessee-company under section 115JB - HELD THAT:- Since this issue is squarely covered by the various judicial pronouncements including the decision of Special Bench of this Tribunal in the case of ACIT –vs.- Vireet Investment (P) Limited [2017 (6) TMI 1124 - ITAT DELHI] we direct the Assessing Officer to delete the addition made on account of disallowance under section 14A while computing the book profit of the assessee-company under section 115JB - Ground No. 2 of the assessee is accordingly allowed.
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