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2016 (10) TMI 994 - ITAT AHMEDABADDetermination of capital gain on transfer of land - long term capital gain v/s capital loss - Held that:- If we exclude the DVO’s report, there is no other evidence available with the AO, except the calculation submitted by the assessee based on an exercise of reverse indexation from the order of the Deputy Secretary, Revenue determining fair market value of the land in this area. Other evidence collected by the AO from Sub-Registrar was not considered by the AO himself, because, the DVO has reported value of this property at ₹ 192/- per sq.yard. Value considered by the AO at ₹ 2/- per sq.yard was not supported by any corroborative evidence. The assessee has pointed out that the rates considered by the AO were not of similar land. These were for agriculture land having different geographical locations, whereas the land sold by the assessee was of an industrial land. Therefore, the calculations made by the assessee deserve to be accepted. We set aside the orders of the Revenue authorities on this issue and direct the AO to take figure of long term capital loss of ₹ 52,50,759/-.- Decided in favour of assessee Addition on on-money received over and above, the amounts stated in the sale deed - Held that:- AO failed to bring conclusive evidence on record to say that the assessee has received on-money. It is also pertinent to mention that AO has made an addition of ₹ 1,92,06,000/- in the total income of the assessee. To our mind, the AO has erred in making a separate addition. At the most, it could be part of total sale consideration, and the capital gain ought to be computed on the basis of taking this amount. A thought struck to our mind that let it be inquired again at the level of AO, but when we appraised ourselves about the ultimate tax effect on this exercise, then it revealed that even if for argument sake this amount is added, then, long term capital gain on it will be roughly ₹ 38 lacs. It will be set off against the LTC loss accepted at ₹ 52,50,759/-. The assessee is a salaried person. No carry forward of loss would affect him. Thus, in view of the above discussion, we are of the view that addition of ₹ 1,92,06,000/- is not sustainable in the case of the assessee, because AO failed to bring conclusive evidence on record. We allow this ground of appeal, and delete this addition. - Decided in favour of assessee
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