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TMI Blog2014 (5) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to as 'the Tribunal') in ITA No.550/Chd/2010, pertaining to the Assessment Year 2005-06, raising the following substantial questions of law:- "(i) Whether on the facts and circumstances of the case, the Hon'ble ITAT has erred in law in deleting the addition of Rs. 1,33,54,388/- made by the Assessing Officer after including the consideration received in kind i.e. the value of ground floor/flat in the total consideration received on account of sale of only 60% share in land. The Hon'ble ITAT has failed to appreciate the provisions of section 48 of the Income Tax Act which clearly states that 'full' value of consideration has to be taken into account while computing capital gains. (ii) Whether on the facts and circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30.11.2009 (Annexure A-4). By the said order, the Assessing Officer assessed the value of consideration received by the assessee in kind from the collaborator as Rs.1,63,33,333/- and allowed exemption under Section 54 of the Act to the tune of Rs.29,78.965/- and thereafter determined the capital gains earned by the assessee as Rs.1,33,54,368/- on account of his share of 40% over and above what he has declared for 60% share of the property. Aggrieved against the said order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) which was partly allowed by the Commissioner of Income Tax vide order dated 22.02.2010 (Annexure A-5) while holding that under the collaboration agreement the assessee had transferred 60% of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sides construction of the basement, ground floor and servant quarter etc. The assessee received Rs.1,90,00,000/- as consideration for sale of 60% of the plot along with right of the builder to raise the construction and to sell the same to any one. In addition to that, he had received the consideration in kind, i.e., cost of construction of the basement, ground floor, servant quarter etc., which was to be given to him as per the agreement. Undisputedly, the value of construction on basement and ground floor, which was to be given to the assessee, was Rs.29,78,965/-. That was the cost of construction which the assessee received in kind and qua that cost of construction, the assessee is entitled to get exemption under Section 54 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansferred 40% share in the property to the builder. The said share was kept by him on which the builder constructed the ground floor and has given the same to the assessee after construction. The value of that construction which the assessee had received was Rs.29,78,965/- which the assessee was entitled to for exemption under Section 54 of the Act. Thus, there was no justification for adding an amount of Rs.1,33,54,388/- and the said addition has been rightly deleted by the Commissioner of Income Tax (Appeals), and the said order has been rightly upheld by the learned Tribunal. In view of the above, we do not find any illegality in the impugned order and in our opinion, no substantial question of law is arising from the impugned order of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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