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2023 (4) TMI 22 - AT - Income TaxCorrect head of income - profit arising on sale of land should not be assessed - “Income from capital gains” or“Income from profits and gains of business” - whether asset sold was capital asset.? - HELD THAT:- From the findings of the CIT(A), we find that the asset sold in question was bought in the year 1997 and the industrial shed was constructed for the purpose of giving the said property on rent and the rental income earned on the said property/shed was assessed under the head “Income from house property”. This fact clearly establishes that the intention of the respondent-assessee is to hold the asset as “capital asset”. Therefore, no fallacy in the findings of the ld. CIT(A) in holding that the asset sold was a capital asset. Accordingly, this ground of appeal nos.1, 2 stands dismissed. Allowing the cost of construction of the shed as cost of acquisition - Whether CIT(A) had fell in serious error in allowing the cost of industrial shed on said land and also relying upon a new material which was not furnished before the AO during the course of assessment proceeding and without complying with Rule 46A of the Rules? - HELD THAT:- On perusal of the assessment order, it would be evident that this valuer’s report was not furnished before the AO during the course of assessment proceedings and, therefore, the ld. CIT(A) ought not to have allowed the cost of construction at 900 per sq. ft. without complying with the provisions of Rule 46A of the Rules. In these circumstances, we remit this ground to the file of the ld. CIT(A) to decide the cost of acquisition based on the valuer’s report after giving an opportunity of hearing to the Assessing Officer. Ground of appeal stands partly allowed.
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