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Shri Rajendra H. Seth, Prop. Shraddha Automobiles Versus Asstt. Commissioner of Income Tax, Cir-3, Ahmedabad.

2011 (11) TMI 641 - ITAT AHMEDABAD

Computation of capital gain - deed of transfer of the flat - application of section 50C - Held that:- CIT (A) observed that payment of ₹ 59,16,000/- was not only related to the flats sold but it related to other properties and relinquishment of other rights also. The ld. CIT (A) was of the view that 1/3rd portion of payment in lieu of vacation of the flat will be justified. - The assessee did not furnish any other basis. In absence of material a different estimation of allocation of th .....

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are of the view that assessee’s valuation as on 1.4.1981 is supported by valuation by a technical person i.e. report of a registered valuer and contrary to that no such material or departmental valuation report is available on record. Merely on the basis of other general enquiries the valuation declared by the registered valuer cannot be substituted. We, therefore, set aside the orders of Revenue authorities on this issue and direct the AO to adopt the valuation of the flat as on 1.4.1981 as de .....

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ppellant by:- Shri S. N. Soparkar, Sr. Advocate Respondent by:- Shri B. L. Yadav, DR O R D E R Per A. L. Gehlot, Accountant Member. This is an appeal filed by the assessee against the order of ld. CIT(A) dated 12.12.2006. 2. The ld. AR submitted that ground no.1 is general in nature and hence no adjudication is needed. Hence this ground is dismissed. 3. He further submitted that there are three effective grounds in this appeal- (i) that action of AO by holding that only 1/3rd of the consideratio .....

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t 17,750,000 Less: (a) Paid to Mrs. Uma Kamalkishore Seth for vacating the portion occupied by her 5916000 (b) Prem Kutir Old dues 315214 6231214 Less: (a) Transfer fees of society 50% borne by us 443750 (b) Legal fees (Old & new) 200000 (c) Brokerage 177500 821250 Net Sale Consideration 10,697,536 Less: Indexed cost of acquisition Fair market value as on 1.4.81 is ₹ 45,60,000 (as per valuation report) = 45,60,000 x 447 (2002-03) 100(1991-82) 20383200 Long term capital loss (-) 9685664 .....

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sq.ft., cost of garage is deemed to be included in this price) = 240,000 x 447 (2002-03 100 10,72,800 Long term capital gain Rs.1,16,35,950/- Assessee s share at 1/7th part Rs.23,05,136/- The ld. CIT(A) confirmed the recomputation made by the AO and dismissed the assessee s appeal. 5. The ld. AR submitted that there was some dispute relating to various properties in the family including the properties sold and for which the assessee has declared capital gain. The dispute was resolved through mut .....

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ed that the entire amount of ₹ 59,16,000/- of the sale consideration reduced from the cost of the flat. The ld. AR further submitted that the valuation of flat as on 1.4.1981 declared by the assessee considered in the computation of capital gain was ₹ 45,60,000/- supported by valuation report. The ld. AR submitted that the Revenue authorities without considering the facts and valuation report have taken the valuation as on 1.4.1981 to ₹ 2,40,000/-. The ld. AR submitted that the .....

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de by AO out of total interest expenses debited of ₹ 2,79,758/- holding that the interest bearing funds were diverted in granting non-interest bearing loan. Both the lower authorities have failed to appreciate the fact that the appellant had sufficient interest free funds available to advance the loan, and the interest bearing funds were utilized for the purpose of business only. Ld. CIT(A) ought to have deleted the disallowance made by AO. 8. The ld. AR submitted that ld. CIT(A) while con .....

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ation of flat by ₹ 59,16,000/- we find that there s no dispute about the fact that as per the consent terms before the Hon. Bombay High Court this amount of ₹ 59,60,000/- was for various purposes. Relevant portion of the consent terms is reproduced below :- 4. Agreed, Declared and Confirmed that the parties herein have agreed to sell the Suit premises which the defendants have agreed to confirm, to one Mr. Madhusudan Ishwarlal Dalal (the Purchaser, for short) and in that regard have .....

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te the declaration cum indemnity as per the draft approved and annexed to the Memorandum of Intention dated September 17, 2002. 4.4 Execute a deed of relinquishment as per the draft approved and annexed to the Memorandum of intention dated September 17, 2002. 4.5 Hand over vacant quiet and peaceful possession of the tenanted premises being room nos.37 in Bharat Bhavan 462-472, Kailadevi Road, Princess Street, Mumbai 400 002, which stand in the name of Mr. Shyam Seth but are in the possession of .....

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ation and possession of the Shop No.89 situated at Swadeshi Market, 89, Krishna Gulli, Kalbadevi Road, Mumbai 400 002. The ld. CIT (A) observed that payment of ₹ 59,16,000/- was not only related to the flats sold but it related to other properties and relinquishment of other rights also. The ld. CIT (A) was of the view that 1/3rd portion of payment in lieu of vacation of the flat will be justified. The assessee did not furnish any other basis. In absence of material a different estimation .....

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