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Income-Tax Officer -2 (2) -4, Mumbai Versus Prem Rattan Gupta

2012 (3) TMI 474 - ITAT MUMBAI

Sale of the plot of the land attract the provision of sec.50C for the purpose of computing the capital gain u/s.48 - Held that:- Set aside the order of the CIT (A) and restore the issue of valuation to the file of the A.O. with the direction to refer the same to the DVO in the light of our above observations. The DVO should only consider net of land transfer to Developer by the assessee after considering acquisition made by the Govt as well as Thane Municipal Corporation as discussed hereinabove .....

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order of the Ld. CIT (A)-2, Mumbai dated 27.08.2009 for the A.Y. 2006-07. The revenue has taken the following grounds: 1 On the facts and in the circumstances of the case and in law, the learned CIT (A) erred in ignoring the Fair Market Value of the area of the plot sold by the assessee (as a cosharer), as adopted by Stamp Valuation Authority which is contrary to the provision of section 50 C of the I.T. Act. 2. On the facts and in the circumstances of the case and in law, the learned CIT (A) e .....

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ring the assessment proceedings, which has not been preferred before the A.O. in the instant case. 4. For these and other grounds that may be urged at the time of hearing, the decision of the CIT (A) may be set aside and that of the Assessing Officer be restored. 2. The issue in controversy is whether the sale of the plot of the land attract the provision of sec.50C of the Act for the purpose of computing the capital gain u/s.48. 3. The facts which revealed from the record are as under. The asse .....

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hat as per the agreement the fair market value of the land for the purpose of payment of the stamp duty was adopted at ₹ 1,19,72,064/- as against the sale consideration of ₹ 20 lakhs declared by the assessee. The A.O. sought the explanation of the assessee why the valuation as per sec.50C should not be adopted as a sale consideration. The assessee filed the reply. The assessee claimed that the total area of the plot was 2242 sq. meter out of that 2110 Sq. meters was acquired by PWD a .....

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A.O. examined the agreement to sale and part of which is reproduced in assessment order. As per the agreement to sale, the assessee has given Development Rights to the Developer excluding the area acquired for Eastern Express Highway. As per agreement it was agreed that the developer would be entitled to the benefit in the nature of DRC arising out of land acquired for 15 meter widening of service road by the Thane Municipal Corporation road out of the said plot which was to extent of 950 sq. me .....

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(A) following the decision of the Tribunal in the case of Shakti Insulated Wires (P) Ltd. vs. ITO in ITA 3710/Mum/2007 dated 27.04.2009, allowed assessee s contention. He further observed that the assessee has transferred land admeasuring 134 meters only and he held that pro-rata consideration should be ₹ 7,14,910/- as against total consideration of ₹ 20 lakhs. In sum and substance, he held that, in fact, consideration declared by the assessee is more and he directed the A.O. to del .....

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cquired for 15 meter wide Service road and 300 sq. meters were acquired for old Agra Road, hence, total acquisition of the land worked out to 2110 sq. meters. As per the revenue record i.e. 7 x 12 abstract, the land is shown at 2244.18 sq. meters (Page no.28 of the paper book). As per Mutation Entry document, page no.31 of the paper book, it appears that land is acquired for the Easter Express High Way but the effect is not given in the 7 x 12 Abstract. As per the document at Sr. No.32 & 33 .....

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