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2021 (7) TMI 937 - ITAT HYDERABADComputation of capital gains - transfer of the subject property by the assessee and other co-owners - FMV determination - HELD THAT:- Section 50C nowhere confers any jurisdiction to the assessing authority to change the nature of the capital asset other than that declared in the corresponding transfer instrument u/s. 2(47)(v) of the Act. Hon'ble apex court's recent larger bench's decision in Commissioner of Customs Vs. Dilip Kumar [2018 (7) TMI 1826 - SUPREME COURT] settles the law that only strict interpretation is to be adopted whilst construing a taxing or an exemption provision; as the case may be. Coupled with this, the crucial statutory expression 'assessable' in Section 50C came to be inserted by way of Finance (No. 2) Act, 2009 w.e.f. 01-10-2009 whereas we are in A.Y. 2008-09 only. We thus hold in the foregoing factual backdrop that the CIT(A) has rightly reversed the impugned long term capital gain made in the assessees' hands. The same stands affirmed accordingly. Disallowance of claim towards cost of acquisition - HELD THAT:- We find no reason to express our agreement with the learned CIT(A)'s foregoing remand directions going against the amendment in Section 251(1)(a) of the Act vide Finance Act, 2001 w.e.f. 01-06-2001 omitting the clinching statutory expression 'or he may set aside'. The fact also remains that the assessees have not been able to prove as to under what circumstances they had to pay the impugned sum over and above ₹ 8 crores as per the terms of settlement. We therefore deem it appropriate that these assessees need to be afforded one more effective innings before the AO to explain the justification of ₹ 3 crores made to the twin recipients (supra) as falling u/s. 48(i) and (ii) of the Act; as the case may be. These assessees are directed to appear themselves or through their authorised representative; as the case may be on or before 31-10-2021 with all the supportive evidence; at their own risk and responsibility to be followed by three effective opportunities of hearing for the consequential verification.
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