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A.C.I.T., Circle-4 Versus M/s. Sree Kamakhya Tea Co. Pvt. Ltd.

2016 (3) TMI 675 - ITAT KOLKATA

Income from other source v/s long term capital loss - transfer of land - Held that:- From the grounds of appeal raised by the revenue it is clear that the revenue has not dispute any of the findings of the CIT(A) except harping on the point that the purchaser of the property did not confirm the details of the transactions as given by the Assessee. The sale deed of the property dated 14.06.2005 is a registered documents. The authenticity of the same cannot be doubted. The fact that the purchase o .....

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revenue is dismissed. - Decided in favour of assessee - ITA No.555/Kol/2012 - Dated:- 20-1-2016 - SHRI N.V.VASUDEVAN, JM & SHRI M.BALAGANESH, AM For the Petitioner : Shri S.S.Alam, JCIT, Sr.DR For the Respondent : None ORDER PER SHRI N.V.VASUDEVAN, JM : This is an appeal by the Revenue against the order dated 21.12.2011 of CIT(A) IV, Kolkata, relating to AY 2006-07. 2. Grounds of appeal raised by the revenue reads as follows :- 1. That on the facts and circumstances of the case, Ld. CIT(A) .....

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ot submit any such information. 3. The assessee is a company. It carries on business of growing and manufacturing of tea. The ground of Appeal raised by the revenue relates to treatment of profit on sale of land by the AO as Income from Other Sources. The facts relevant to the aforesaid ground are that the Assessee during the previous year i.e., in June, 2005, sold a piece of land with a temporary structure, which was adjacent to its registered office and under the same premises at 4, Hastings P .....

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of stock in trade of the Assessee. Since the property in question was a capital asset in the hands of the Assessee, any gain arising out of transfer of a capital asset had to be assessed under the head Capital Gain u/s.45 of the Act. The Assessee gave a calculation of Long term capital loss on sale of the property in question as follows: Sale consideration of Land in June 2005 Rs.2,62,00,000 Less: Cost of Acquisition (Purchased for ₹ 16 lacs) Market value as on 28-03-05 as per Registered .....

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eport of the AO on the above aspect filed before CIT(A) was of the view that there was no denial of the fact that the property in question was land which had been sold and the consideration as well as the cost of acquisition were not in dispute. What was in dispute was only the chargeability under a particular head. The CIT(A) found that the AO had accepted the claim of long term capital gain for the only reason that because the confirmatory letter from the buyer was not received. The CIT(A) fou .....

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any doubt a capital asset within the meaning of Section 2(14) of the Income Tax Act. The CIT(A) therefore held that any transfer of a capital asset is to be charged under the head Capital Gains u/s.45(1) and the mode of computation as per section 48 of the Income Tax Act, had to be applied. The CIT(A) also verified the Valuation Report dated 27/07/2006 of a registered valuer wherefrom it was clear that the valuation has been done in conformity with valuation of similar properties in that area, a .....

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