9911796707
TMI Blog2018 (11) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... epresented on behalf of the Revenue, and Mr.K.M.Mohandass represented on behalf of the Assessee. 3. As all these three appeals involved identical issue, the same is disposed off by this common order. 4. It was submitted by ld.D.R that the assessee is a domestic company, which had sold certain lands. It was a submission that the assessee-company was originally incorporated on account of conversion of partnership firm, and the date of conversion into the present assessee company was 18.11.2009. It was a submission that the assessee firm was created and the partners of the assessee firm have brought in the land as their capital. The said firm had re-valued its said lands being the 'fixed asset' on 11.05.2009 and was converted into the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, and the difference between cost as per the books of the firm being the previous owners, and the sale price received by the assessee, was treated by the ld. Assessing Officer as short term capital gains. It was a submission that on appeal, the Ld.CIT(A) had deleted the addition made by the ld. Assessing Officer by following the decision of the Co-ordinate Bench of this Tribunal in the case of ACIT Vs. B.V.Reddy Enterprises Private Limited in ITA Nos.250 & 251/Mds./2011 dated 03.03.2014. It was a prayer that the order of the CIT(Appeals) is liable to be reversed. 5. In reply, the ld.A.R vehemently supported the order of Ld.CIT(A). 6. We have considered the rival submissions. At the outset, the determination of the short term capital gai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e computing capital gains on conversion of the said land into stock-in-trade as on 19.11.2009 relevant to assessment year 2010-11, the assessee had adopted the Fair Market Value as the value of conversion into stock-in-trade, and the value on which the assessee company took over the assets from the erstwhile firm as the cost of acquisition. Thus, computation for assessment year 2010-11 wherein the capital gains has been determined at Nil, has not been dislodged by the Revenue and that position continues to remain. As long as this position continues, the cost of acquisition in the hands of the assessee company for the purpose of computing the profits or gains on the sale of the said converted stock-in-trade being land during the years only s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en computing the capital gains for the assessment year 2010-11 when the asset was converted from investment to stock-in-trade. The A.O having missed the bus for assessment year 2010-11 cannot make the said adjustment during the impugned assessment years. Perusal of the order of the CIT(Appeals) in paras 4.1.2 to 4.1.4 clearly shows that the Ld.CIT(A) has taken this issue into consideration when deciding the appeal. Further, perusal of the decision of the Co-ordinate Bench of this Tribunal in the case of ACIT Vs. B.V.Reddy Enterprises Private Limited referred to supra, which has been relied upon by the Ld.CIT(A) for the purpose of giving relief to the assessee, also clearly shows that this is the view that has been expressed by the Co-ordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
