TMI Blog2017 (7) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... basis. Thus to assess the cost of acquisition of land, the Assessing Officer should refer the matter to the Valuation Cell to assess the market value of the property and after giving an opportunity of hearing to the assessee, the issue may be decided in accordance with law. - Decided in favour of assessee for statistical purposes. - I.T.A.No.2962, And 2963/Mds/2014 - - - Dated:- 7-2-2017 - Shri Chandra Poojari, Accountant Member, And Shri Duvvuru RL Reddy, Judicial Member For The Appellant : Shri G. Baskar, Advocate For The Respondent : Shri Shiva Srinivas, JCIT ORDER PER DUVVURU RL REDDY, JUDICIAL MEMBER: Both the appeals filed by the assessee are directed against different orders of the ld. Commissioner of Income Tax (Appeals), Salem both dated 31.10.2014 relevant to the assessment years 2009-10 and 2010-11. The concise common ground raised in both the appeals of the assessee is that the ld. CIT(A) has erred in confirming the addition made towards long term capital gains. I.T.A. No. 2962/Mds/2014 2. Brief facts of the case are that no return of income was filed by the assessee, an individual for the assessment year 2009-10 under section 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d value of which was taken as ₹.52,80,695/- being market value of the property as on that date and the actual amount paid by the assessee. The assessee was asked to produce evidence, if any. The assessee has not filed any returns of income for that period and hence this claim was nowhere substantiated. The assessee also admitted that she does not have any evidences. Therefore, the Assessing Officer was of the opinion that the claim of the assessee has been highly exaggerated and totally without any basis. Therefore, he proceeded to work the cost of acquisition of land as per the details available on record. 5.3 As per purchase documents, the Assessing Officer noticed that the assessee had acquired the two properties vide document Nos. 1093/1993 1098/1993 SRO, Attur) on 14th and 15th July, 1993 for a total consideration of ₹.3,80,000/- [₹.1,85,000 + ₹.1,95,000/-]. Taking into account the stamp duty and registration charges paid, other additional cost such as brokerage and document writing charges, the Assessing Officer presumed the final cost at ₹.4,50,000/-. 5.4 With regard to the claim of land development expenses of ₹.1,60,000/- in 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xed a cost of ₹ 4,50,000/- as cost of purchase. 5.3. From the above the following facts are arrived. i) The appellant has shown the consideration of sale at ₹ 90,09,000/- in his return. The value as per document was only ₹ 26,30,000/-. The buyer of the property has also accounted the cost of acquisition at ₹ 90,09,000/-. ii) The appellant has estimated the cost of acquisition of the property at ₹ 52,80,695/- after indexation of the purchase cost of ₹ 23,50,000/-. The assessing officer has adopted the cost as per the document at ₹ 3,80,000/- and has fixed the total cost at ₹ 4,50,000/- after giving an allowance for the transfer expenses. 5.4. The assessing officer has called for the details of the cost as valued by the appellant at ₹ 52,80,695/-. The appellant had no evidence to offer, except saying that this was the actual cost paid by him. Apart from stating this, the appellant had no evidence to buyer, etc. The appellant in his submission relies on the decision of the Hon'ble Gujarat High court in 253 ITR 454, that a document should be read as a whole and it is not possible to ignore a part of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessment year 2009-10 under section 139 of the Act. The assessee filed return of income in response to notice under section 148 of the Act admitting income of ₹.9,13,050/- by working out the long term capital gains at ₹.6,39,366/- adopting the actual sale consideration received at ₹.90,09,000/- as was admitted in the case of M/s. Sri Amman Jewellers, Thammampatty, when there was a survey in latter s case. However, the value as per the document was only ₹.26,30,000/-. For indexation of value was taken by the assessee at ₹.52,80,695/- by adopting the purchase cost at ₹.23,50,000/-. The assessee has not produced any material for adopting the above purchase cost. However, as per purchase documents, the assessee has acquired the properties for a consideration of ₹.3,80,000/- only + registration charges ₹.50,860/- and fixed the cost of acquisition of land at ₹.4,50,000/-. When the Assessing Officer has accepted the sale consideration at ₹.90,09,000/- ignoring the consideration mentioned in the document at ₹.26,30,000/-, we are of the considered opinion that the Assessing Officer was not justified in basically taki ..... X X X X Extracts X X X X X X X X Extracts X X X X
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