9911796707
TMI Blog2015 (2) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... ents completed under section 143(3) read with section 153A vide orders dated 30.12.2011, the total income declared by the assessee was accepted by the A.O. The records of the said assessments were subsequently examined by the Ld. CIT and on such examination, the Ld. CIT was of the opinion that the assessments made by the A.O. for both the years under consideration suffered from the following errors : "A.Y.2005-06 The assessee with 5 others executed a Development Agreement cum GPA 0001-06-2004 for development of 2915 Sq. Yds (3085 Sq. Yds. Minus 175 Sq. Yds surrendered to Municipality) of land at Begumpet, Hyderabad.Out of this land the assessee's share is 693 Sq Yds. As per the agreement cum GPA for foregoing his land, the assessee received Flat No. 105 (50% share), flat No. 405 and Flat No. 505 (Total super built area of 5350 Sq feet of 3 Oats 104.84 Sq.Yds respectively. There was no endorsement of registration authorities on the reverse of the Development Agreement cum GPA which indicate that the agreement on the registered in the absence of which the compliance to Section 50 C of IT Act is not assessable. However, as the date of Development agreement cum GPA was on 01-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A. Y.2006-07 Assessee's reply dated 21. 03.2014 is as under: Registration of Development Agreement: You may note that the endorsement of registration behind the development agreement (as per the seized material on page 1 of Annexure AjEBPLlaFFj01) is very much there. This information was very much available and considered by A.O already. Explanation w.r.t rate adopted for transfer of Land: With regard to your calculation in the notice, on the basis of cost assigned to un-divided share of land of 104.18 sq. yds (Rs. 6,09,000) worked out to be Rs. 5,845/- per sqyd, we would like you to note that the cost assigned is only a balancing figure arrived after reducing cost of built-up area from the Total sale consideration of the flat (Rs. 20,00,000) and NOT actual cost of the land. Total consideration Rs.20,00,000 Less: Cost of building the flat 405 (2140 sq. ft. * Rs. 650/- per sq. ft. Rs.13,91,000 Cost of undivided share in land admeasuring 104.18 (Balancing Figure). Rs.6,09,000 You may note that, after construction the land is only an undivided portion and the sale is always made not on what land comes as undivided share, but on the basis of built-up ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able with him, the assessee has entered into development agreement and has got flats (5350 sft) constructed in exchange of 432.55 SQ yds of land. For the purpose of calculation of capital gain on notional sale of land, the cost of construction of flats (5350 stt) as per builder certificate is taken as notional sale consideration for the sale of 432.55 yds land. Further as the assessee is getting flat in exchange of land the sale consideration is automatically invested in a residential house. Hence the assessee is entitled to claim deduction u/s. 54F for the investment in residential property while calculating capital gain on sale of land as : 1. Assessee is an individual transferring long term assets i.e. land (other than residential house). 2. The sale consideration is invested in the residential house. 3. The assessee does not own any other residential house on the date of transfer. Further the assessee has also not claimed deduction for investment in part of the building Flat No.405) which is sold during the year. Explanation w.r.t revision u/s.263 of I.T. Act, 1961: In this regard we would like to affirm that all the above facts were considered by the A.O in Scrut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For the reasons given above, the assessment orders passed by the A.O. for both the years under consideration were set aside by the Ld. CIT with a direction to him to make the assessments afresh after examining the issues in proper perspective and after considering the explanation offered by the assessee during the course of revised proceedings. Aggrieved by the orders of Ld. CIT passed under section 263, assessee has preferred these appeals before the Tribunal. 6. At the time of hearing before us, none has appeared on behalf of the assessee. These appeals of the assessee therefore are being disposed of exparte after considering the arguments of the learned D.R. and perusing the relevant material on record. It is observed that the solitary ground raised by the assessee, which is identical in both the present appeals, reads as under : "For that in the facts and circumstances of the case, the Ld. CIT erred in not passing a speaking order against the submissions of the appellant. As such, the order passed u/s. 263 as void abinitio. The action of the Ld. CIT was wholly unreasonable, uncalled for and bad in law." 7. As is clearly evident from the common ground raised by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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