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2015 (2) TMI 197 - AT - Income TaxConversion of capital asset to stock in trade - date of conversion - admission of additional evidence - market value adopted by AO for the purpose of calculation of capital gains by invoking the provisions of section 50C - Held that:- Ld. CIT(A) had forwarded the documents/evidences sought to be produced by the assessee during appellate proceedings to the Ld. AO and called for his comments and has given a categorical finding that the AO neither had put a specific query regarding the date of conversion and even had not given proper opportunity to the assessee to produce the necessary evidences on the file. Even the AO had been given opportunity to rebut the evidences but the AO could not point out any defects in the evidences/accounts of the assessee. Hence, we do not find any infirmity in the order of the Ld. CIT(A) so far the question as to admission of additional evidence is concerned. The Ld. CIT(A), after detailed discussion and appreciation of evidence on file, has held that the date of conversion of capital asset into stock in trade was 01.04.2001. The land in question was not actually transferred and hence no value was adopted by the Stamp Duty Authorities as the matter never went to Stamp Duty Authorities. Thus provisions of section 50C were not applicable. The Ld. CIT(A) has given a well reasoned finding regarding the non application of section 50C of the Act to the assessee’s case. The Ld. CIT(A) has also discussed that the Hon’ble High Court has decreed the plaint holding the assessee to be owner on the basis of agreement of the year 1973. Thus no infirmity in the order of the Ld. CIT(A) on the above issues. - Decided against revenue. Wrong offer to tax on capital gains on the conversion of capital asset to stock in trade by wrongly applying the provisions of section 45(2) - cross objection by assessee - Held that:- The Ld. CIT(A), after going through the evidences, has held that the assessee had entered into a development agreement on 28.06.04 with Shree Balaji Developers and thereby had conveyed the land for the purpose of development to the developer. He has held that such conveyance of land very much falls within the meaning of transfer under section 2(47) of the Act and the capital gains arising as per the provisions of section 45(2) were taxable in the instant year. Without further going into this controversy, we find that the assessee itself had offered the tax on capital gains under section 45(2) treating the conveyance of the land to the developer vide development agreement dated 28.06.04. Now, the assessee, in our view, is estoped from his own act and conduct to dispute the date of transfer. Thus find no merit in the cross objections and the same are accordingly dismissed. - Decided against assessee.
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