Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (2) TMI 839 - AT - Income TaxLong term capital gains - transfer u/s 2(47) - exchange of land - determination of full value of consideration and cost of acquisition - application of section 50C - applicability of provisions of section 2(47) of the Act for exchange of lands - Assessee argued there is no consideration involved in exchange of land and further, the appellant had also explained the reasons for executing sale deed in exchange of other lands - HELD THAT:- Once, the impugned transfer or sale of land in exchange comes within the definition of transfer as defined u/s. 2(14) then capital gains arising out of transfer of said land needs to be computed in accordance with law by taking into account full value of consideration. In this case, the assessee had computed capital loss by taking into account market value of land transferred by him in exchange of market value of land received from other persons, and computed capital loss. AO has computed long term capital gains by taking into account full value of consideration accruing as a result of transfer by applying provisions of section 50C and has adopted guideline value of the property as on the date of transfer. AO has allowed cost of acquisition in accordance with law and has arrived net capital gains in respect of both the properties. In our considered view, the method adopted by the AO is in accordance with law and does not called for any interference from our end. Hence, we uphold the computation of long term capital gains with regard to transfer of both the properties and reject argument taken by the assessee. Admission of additional grounds - We find that petition filed by the assessee for admission of additional grounds is not maintainable because, the assessee failed to make out a case that grounds taken by the assessee in the petition is legal issues, which can be taken at any time of proceedings including proceedings before the Tribunal. Secondly, the assessee has also failed to make out the case that facts with regard to the issues are also on record before the AO and the AO has examined the same. Since, the additional grounds taken by the appellant is purely on question of fact, in our considered view, petition filed by the assessee is not maintainable There is no proof, that the assessee has transferred those lands in the impugned assessment year or in subsequent assessment years. Therefore, if at all the assessee claims fair market value of exchanged lands as cost of acquisition for computation of capital gains, the AO is directed to deal with the claim of the assessee in accordance with law, wherever the issue arises. But, for this year, we reject petition filed by the assessee for admission of additional grounds. Appeal filed by the assessee is dismissed
|