9911796707
TMI Blog2012 (12) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... come for the assessment year 2005-06. In response to the notice, the assessee filed return on 7.11.2006 admitting loss of Rs. 4,47,000/- under the head "Long Term Capital Gains" and admitting "Income from Other Sources" Rs. 1,00,000/-. Therefore, net loss returned in the income was Rs. 3,47,000/-. The Assessing Officer vide assessment order dated 31.12.2007 made addition of Rs. 47,59,500/- on account of long term capital gains arising from sale of land. Aggrieved against the assessment order, the assessee filed an appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee vide order dated 14.3.2011 holding that there is no transfer of capital asset during the year under consideration and cancelled the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case. 4. To-day, none has appeared on behalf of the assessee. The notice was duly served to the assessee. One Mr. S.Balamurugan has been representing the assessee on the previous dates. The case was adjourned at the request of the A.R. on the last two dates i.e. 19/3/2012 & 20/3/2012. To-day, none has appeared on behalf of the assessee. So, we proceed to decide the appeal of the assessee on merits, after hearing the D.R. 5. The assessee had purchased a landed property in the year 1971. In the year relevant to the assessment year 1984- 85, the firm M/s. Kanniah Photo Studio in which assessee is one of the partner constructed building on the aforementioned land belonging to the assessee. The firm had been claiming depreciation on the bui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved that the provisions of Income Tax Act were amended with effect from 1.4.1988 bringing deemed provision to include "transfer". According to which property got vested with the firm and the transfer took place in the year relevant to the assessment year 1988-89. Since, the transfer had already taken place way back in the period relevant to the assessment year 1988-89, the question of taxing the same as per the provisions of the Income Tax Act during the financial year 2004-05 relating to the assessment year 2005-06 was held by the CIT(A) to be bad in law. 6. We do not coincide with the finding of the CIT(A). The assessee had given collateral security to the bank in order to construct super structure of the property. This clearly shows tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment between the assessee and M/s. Kanniah Photo Studio can be termed as transfer to include transfer of ownership of land under the provisions of section 2(47)(vi). 7. The provision of section 48 of the Income Tax Act prescribes the mode of computation of capital gains and the deductions to be made therefrom. The income under the head "capital gains" is computed by deducting the cost of acquisition of the asset and the cost of any improvement thereto from the full value of the consideration received or accruing as a result of the transfer of the capital asset . The property subjected to mortgage has never been understood as the balance remaining after deduction of the mortgage amount whether it be with reference to the Stamp Act or law re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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