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2023 (6) TMI 925 - AT - Income TaxComputation of LTCG - CIT(A) determining FMV of the land in question @ 150 per sq. yard in place of Rs. 60 as adopted by the AO, for working out the capital gain - HELD THAT:- Commissioner before coming to conclusion not only thoroughly considered the peculiar facts and circumstances of the case but also taken into account the rival claims of the Assessee and the AO qua Valuation Reports of Joint Sub-Registrar, Hyderabad (South) and therefore, determined the FMV @ Rs. 150 per sq. yard, which in our consideration opinion is justifiable and thus cannot be faulted with. Resultantly, we do not find any perversity, impropriety and/or illegality in determining the FMV @ Rs. 150/- by the Ld. Commissioner and consequently deleting the addition and therefore Ground no.1 of the appeal stands dismissed. Disallowance of “service tax” - Assessee offered the aforesaid amount of service tax on the developers qua consultancy/ advisory services rendered as the revenue receipt - entitled to get deduction of such amount while computing capital gains on the transfer of subject land under section 45 r.w.s 2(47) (v) or not? - HELD THAT:- The nomenclature of the service tax paid in this case may not be correct but its germane of sale consideration which was later on offered as part of total capital gain, therefore, if will not allow the deduction of said amount which is otherwise deposited in Govt. Account, then the same shall not only amounts to double jeopardy but shall also cause injustice. Consequently Assessee’s claim qua expenditure is allowable, not being “service tax” paid for rendering the “consultancy services” as claimed but not substantiated, but infact being originated from the sale consideration which was ultimately offered to tax as LTCG by the Assessee and therefore can be construed part of total sale consideration and is allowable as deduction under section 48(i) - Ground raised by the Revenue Department is also dismissed.
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