TMI Blog2012 (4) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- made by Assessing Officer as income from other sources. 2. The appellant craves to amend, modify, alter, add or forego any ground of appeal at any time before or during the hearing of this appeal. 2. During the year under consideration the assessee sold land measuring 16 Kanal 1 Marla land at Bhondsi village, Haryana to Smt. Usha Rao and Smt. Sushma Rao for ₹ 15,00,000/-. Besides the said amount, another receipt of ₹ 40,00,000/- was shown on account of sale of building constructed on the said land. The Assessing Officer referring to section 3 of The Transfer of Property Act, 1882 which suggests that immovable property shall include land, benefits arising out of land and things attached to land, inferred that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has concluded that against the sale of aforementioned property the entire consideration received by the assessee is ₹ 65 lakhs, therefore, there was nothing on record to support the separate addition of ₹ 40 lakhs. He directed the Assessing Officer to take the sale consideration as per the value determined by DVO and deleted the addition of ₹ 40 lakhs and directed the Assessing Officer to allow the set off of brought forward long term loss of ₹ 7,38,093/- (subject to verification), from the Long Term Capital Gain assessable in the hands of the assessee. 5. The Department is aggrieved with these findings of the learned CIT(A). 6. The learned D.R. after narrating the facts vehemently pleaded that the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STRACT OF FAIR MARKET VALUE S. No. Particulars Amount (Rs.) 1. Cost of land 15,00,000/- 2. Cost of construction 41,74,600/- GRAND TOTAL (1+2) 56,74,600/- 10 From the above calculation it is seen that cost of land has been taken at Rs..15 lakhs which is which is not objected to by the DVO and cost of construction has been taken at ₹ 41,74,600/-. For holding the sale consideration of land at ₹ 15 lakhs the observations of DVO are as under: Property:16 Kanal 1 Marla land in Mauza Bhon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the Fair Market Value of the said plot in March 2006 = (rounded off to ₹ 100) Rs.15.00.000/- Sd/- Valuation Officer Income Tax Department Rohtak 11. The approved valuer also had estimated the cost of construction at ₹ 36,85,000/- and value of land at ₹ 14,45,300/- and thus it arrived cumulative value of ₹ 51,30,300/-. What assessee has done in its books of account is that sale consideration of land has been shown at ₹ 15 lakhs and sale consideration of structure has been shown at ₹ 40 lakhs. Both these figures are very near to the estimates made by approved valuer as well as by DVO. The matter of fact remains that both the valuers have a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the consideration of sale of building as shown by the assessee in its books of account and apply the provisions of section 50 as discussed above after giving the assessee reasonable opportunity of hearing. It is made clear that ₹ 40 lakhs separately assessed by the Assessing Officer as income from other sources cannot be assessed as it is a consideration received by the assessee in respect of building comprising the part of block of assets on which only Short Term Capital Gain can be assessed as admittedly the depreciation has been claimed thereon. The set aside of the order is also necessary for the reason that learned CIT(A) has combined all these issues and has directed the Assessing Officer to allow set off of brought forward lo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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