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TMI Blog2018 (12) TMI 1973X X X X Extracts X X X X X X X X Extracts X X X X ..... and do to require appreciation of new facts and hence, taken on record. Finally, the effective grounds read as under:- 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in upholding the application of Section 50C of the Act by the Assessing Officer for the purpose of the valuation of the land at Rs. 70,14,776/- as made by the DVO instead of Rs. 53,31,200/- as offered by the Appellant. 2. The provisions of Section 50C of the Act are not attracted to the deed of conveyance dated 31st Dec., 2009 as no capital asset being land or building or both is transferred. Hence, the Appellant prays that the addition made invoking section 50C of the Act by adopting fair market value of the property on the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 50C were applicable to the facts of the case. Finally, adopting the deemed sale consideration as Rs. 842.11 as valued by DVO, the differential amount of LTCG was worked out as Rs. 23.30 Lacs which was added to the income of the assessee. 3. Aggrieved, the assessee agitated the same without any success before Ld. CIT(A) vide impugned order dated 29/02/2016 wherein Ld. first appellate authority adjudicated the issue by observing as under:- 4.3 Decision: I have considered the issue as brought out by the assessing officer and the contentions of the appellate. The 2 main issues that emerge out of the discussion above are: 1) whether the date of the transfer of the said property is to be taken as 1971 when an agreement was signed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id deed which mentions as under "save as mentioned herein above, the vendors are the absolute owners and/or well and sufficiently entitled to the property and the title of the vendor's to the property is clear, marketable and free from encumbrances, claims, demands of any nature whatsoever. Para M of the said deed reads "the property register cards relating to the property continued to stand in the name of Ratansi and it is the responsibility of the purchaser to update and mutate the same ...... ". Further it is seen that the entire consideration for the purchase is given as per schedule to the different vendors on pages 6 and 7 of the said deed. On para 8 the deed again reads as under "the vendors hereby grant, sell, convey, transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is when the appellant inherits her share. Keeping in view the provisions of section 49 (1) which defines where the capital asset became the property of the assessee either through a will or by a succession or inheritance, then the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of property acquired it, then in the present case it would be the cost to the grandmother which would be relevant. Reference is also made to the 5th proviso of section 48 which gives the mode of computation for the indexed cost of acquisition. In the present case the date to be adopted as per sub para (iii) of the 5th proviso would be the 1st day of April 1981. The AO is accordingly directed to compute the long-term capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Company Limited [THPCL] for sale of land under question for a sale consideration of Rs. 34,937/- computed at approx. area of 4991 Square Yards @ Rs. 7/- per square yard. The 10% of the consideration was payable as earnest money, 50% was payable upon handing over the formal possession whereas the balance 40% was payable upon completion of sale. As per the terms, the said sale was to be completed within a period of four months, time being the essence of the contract. Pursuant to the same, the possession of the land was handed over to the buyer on the same date which is evidenced by possession receipt as placed on record. 5.2 The Deed of Conveyance with respect to this property has been executed in favor of THCPL on 31/12/2009 which is exec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PCL was inextricably linked with Sale Agreement dated 10/03/1971. The purchaser had acquired certain rights in the said property in the year 1971 when the possession was also handed over by the seller acting for himself as well for other owners. In other words, the seller had already transferred certain rights out of bundle of rights in the said property in favor of the purchaser in the year 1971 by entering into sale agreement as well as by handing over the possession of the property. Therefore, the assessee had inherited only the remaining rights in the aforesaid property and not an absolute owner of the property. The conveyance deed was one of the right attached to the property which has been transferred by the assessee in favor of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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