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2022 (4) TMI 836 - ITAT CHENNAIComputation of capital gains - application of Sec.50C - land was sold through power of attorney holder - land was sold through power of attorney holder - assessee submitted by the assessee that entire land to the extent of 1 Kani 70 Kuzhees was sold through power of attorney for sale consideration of ₹ 210 Lacs and no extra consideration flowed to the assessee - Claim of exemption u/s 54F - Deduction on two properties on the ground that the properties were within one boundary / compound - HELD THAT:- Assessee, along with another co-owner, has executed General Power of Attorney on 05.08.2010 in favor of Shri P.Vaidyanathan. As per the Schedule, POA encompasses a total extent of land of 1 Kani 70 Kuzhi which has been sub-divided into plots. It further states that total extent of 13747 square feet has been sold by the co-owners earlier and the balance 1 Kani 46 Kuzhi 2 -1/4Veesam is left. Thus, the POA has been executed to that extent. However, as per the receipt dated 22.12.2010, POA is stated to have paid a sum of ₹ 210 Lacs against land admeasuring 1 Kani 7 Kuzhi. Therefore, there is clear contradiction between these two documents and the correct factual matrix is required to be brought on record. To resolve the same, we remit the issue back to the file of Ld. AO to ascertain the correct factual matrix. It could be noted that the property under consideration is immoveable property and the sale value of the same could be ascertained on the basis of sale deeds. AO is directed to ascertain the aggregate sale consideration arising out of sale of pots of land sold by the assessee during the year. The assessee is directed to file the relevant details / explanation. Application of Sec.50C AO shall consider the submissions / objection of the assessee to the adoption of stamp duty value and readjudicate the same. The assessee’s plea that Sec.50C would have no application in case of sale executed through POA would not hold much water since no such distinction has been created under the statute. Similarly, the cost of improvement could not be allowed in the absence of any documentary evidences forthcoming from the assessee. Deduction u/s 54F would also stand restored back to the file of Ld. AO in the light of inspector’s report as placed by the revenue before us. The same would be confronted to the assessee and the issue may be re-adjudicated in the light of submissions made and findings arrived at thereafter. Appeal stands partly allowed for statistical purposes
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