9911796707
TMI Blog2022 (3) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) erred in deleting the capital gain in the hands of assessee being a society for an amount of Rs. 4,17,39,950/- stating that the real members were the real owners of the flats which were transferred to the developer for exchange of new flats with more space, hence the land and building thereto belongs to the members of the society and not to the society. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that the provisions of section 50C is applicable in the individual hands of the members of the society without appreciating the fact that the stamp duty of Rs. 21,08,550/- is paid to enter the transaction by the society. 3. The appellant prays that the order of the CIT(A) on the above gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer looked at the balance sheet of the assessee where the land and buildings were shown at Rs. 4,31,050/-. The Assessing Officer noted that the fair market value of the property for stamp duty purposes is Rs. 4,21,71,000/- and therefore, he computed a short term capital gain of Rs. 4,17,39,950/-. The assessment order under section 143(3) of the Act was passed on 29.12.2017. 3. The assessee preferred the appeal before the learned Commissioner of income-tax (Appeals). He noted that appellant society is formed only for the benefit of maintenance of the apartment consisting of 18 flats belonging to 13 members. The society along with its members has decided to redevelop the property by demolishing old building and constructing new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in the new building. The builder will utilize additional floor space index available on the above plot. The members of the assessee society have granted the redevelopment right to the developer as on the development agreement a stamp duty was paid determining the value of the plot of land and building at Rs. 4,21,71,000/-. The assessee did not show any capital gain in its hand as it did not transfer any property. The assessee taxed the capital gain in the hands of the assessee society, who is not the owner of capital asset. The learned CIT(A) therefore, deleted the addition made by the Assessing Officer in the hands of the assessee and gave a direction to the learned Assessing Officer that 13 members of this society are the owners of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
