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2020 (11) TMI 68 - AT - Income TaxCapital gain on sale of land - year of assessment - deemed buy back by the assessee on the date of arbitration award - as per assessee all four sale deeds executed in F. Y. 2009-10 were cancelled as per the Arbitration Award dated 02.09.2015, it should be held that there was no sale of land in F. Y. 2009 -10 relevant to the present Assessment Year 2010 -11 - HELD THAT:- This cannot be said that as per the effect of Arbitration Award dated 02.09.2015 and consequent cancellation of Sale Deeds, there was no sale in A. Y. 2010 – 11 and the ends of justice will be met and full effect will also be given to Arbitration Award dated 02.09.2015 and consequent cancellation of four sale deeds executed in F. Y. 2009 – 10 and execution of three new sale deeds in F. Y. 2015 – 16. If we hold that sale of 50 Acres of land for ₹ 100 Crores was complete in F. Y. 2009 – 10 relevant to A. Y. 2010 – 11 and therefore, resultant capital gain on this entire sale is liable to tax in A. Y. 2010 – 11 and on account of cancellation of those four sale deeds as per the Arbitration Award dated 02.09.2015, it should be held that out of the said 50 Acres of Land, land equal to 26 Acres 10 Guntas is deemed to be Bought Back by the Assessee on 02.09.2015 for same consideration ₹ 2 Crores per Acre because same lands to the extent of 23 Acres 30 Guntas are sold by various sale deeds executed in F. Y. 2015 – 16 also and in fact, sale of only 26 Acres 10 Guntas of land is not ultimately made as per various sale deeds executed in F. Y. 2015 – 16 and for such deemed buy back of 26 Acres 10 Guntas of land, Cost of acquisition should be considered at ₹ 2 Crores per Acre (Total Cost ₹ 52.50 Crores) with date of acquisition as 02.09.2015 for computing capital gain, when any land out of this 26 Acres 10 Guntas Land is sold by the assessee in future. This will give full effect to cancellation of four sale deeds executed in F. Y. 2009 – 10 and execution of three new sale deeds executed in F. Y. 2015 – 16 as per which, 23 Acres 30 Guntas of the same lands were transferred by the assessee vendor to the buyer M/s Manipal University and 55 Acres 31.89 Guntas of new lands (Out of Total 79 Acres 21.89 Guntas of Contiguous land for ₹ 150 Crores as per three Sale Deeds executed in F. Y. 2015 – 16) were transferred at the balance consideration of ₹ 102.50 Crores being Total sale consideration of ₹ 150 Crores minus sale consideration of 23 Acres 30 Gunta Land @ ₹ 2 Crores per Acre ₹ 47.50 Crores because this much land is not deemed to be bought back by the assessee as these are part of sale deeds executed in F. Y. 2015 – 16 also. We have ensured that full effect is given to the arbitration award dated 02.09.2015. Effect to cancellation of Executed Sale Deed as per Arbitration award is fully given once we hold that the land which is not ultimately sold as per new sale deeds executed in F. Y. 2015 – 16 is deemed buy back by the assessee on the date of arbitration award. Regarding double taxation of capital gain in respect of 23 Acres 30 Guntas land which is common in the sale deeds executed in F. Y. 2009 – 10 & 2015 – 16, this is up to the assessee (if so advised) to make claim before the department and since, that year is not before us, we do not feel it proper to give any direction in respect of that year. - Decided against assessee.
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