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TMI Blog2023 (6) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... ny/2019: 1. The Ld.CIT (A) has erred in sustaining the order of the AO for making additions under Section 50C, even though he has accepted as true the fact that the property sold consisted of two parts - one measuring 3000 square feet of plot adjacent to 50 feet road, and another un plotted land measuring 2.50 acre which is land locked area and that the two parts of the aforesaid land property which comes under two different survey numbers cannot be valued with the same guideline value as the Fair Market Value of both the parts of land cannot be the same. 2. The LD CIT (A) has erred in law in sustaining the additions made the AO, even though it is accepted by the Ld.AIT(A) that the adoption of the uniform guideline value in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oof to substantiate their claim both during assessment proceedings and remand report proceedings that the conditions mandated under the provisions of Sec. 54F of the Act have been complied with. 3.3. The Ld. CIT(A) failed to appreciate the detailed analysis made in the remand report with regard to the claim of development charges of Rs. 1 .37 crores paid to 13 persons by the assessee for claiming Section 54F of the Act. 3.4. The Ld. CIT(A) failed to note that the land purchased by the assessee was originally taken on lease by M/s. La Farge Aggregates & Concrete India Pvt Ltd from M/s.Trimurthy Associates and it was confirmed by the M/s. La Farge Aggregates & Concrete India Pvt Ltd that the cement / RMS block plant were removed / demolis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchase of another residential house property, determined net capital gains of Rs. 59,95,214/-. During the course of assessment proceedings, the AO referred violation of property to the District Valuation Officer (in short "DVO") as per request of the assessee on 19.12.2018. Since, the assessment was timebarring on 31.12.2018, the AO without help of Valuation Report, completed assessment, and adopted sale consideration of the property as per the provisions of Sec. 50C of the Act, and worked out the assessee's share of consideration of Rs. 8,57,79,770/-. The AO had also re-worked cost of acquisition and allowed deduction for Rs. 8,84,593/-. However, the deduction claimed u/s. 54F of the Act, has been denied towards purchase of another house p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputation of full value of consideration in terms of provisions of Sec. 50C of the Act. The Ld.Counsel for the assessee submitted that when the matter is referred to the DVO for determining FMV of the property, the AO is erred in completing assessment by adopting s.50C value and computed long term capital gains. The Ld.Counsel for the assessee submitted that in case of another co-owner, under identical set off facts, the ITAT, Chennai Benches, has set aside the issue to the file of the Ld.CIT(A) for re-adjudication after receipt of the Valuation Report from the DVO in terms of provisions of Sec. 50C of the Act. Therefore, similar directions may be given and appeal filed by the assessee may be set aside to the file of the CIT(A). 7. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of provisions of Sec. 50C of the Act, at Rs. 8,57,79,770/-. The Assessing Officer, while computing long term capital gains has allowed indexed cost of acquisition at Rs. 8,84,593/- and deduction u/s. 54F of the Act for Rs. 1 Crs. towards amount deposited in Capital Gain Account Scheme. However, denied deduction claimed u/s. 54F of the Act, towards amount re-invested for purchase of another residential house property. 9. The sole arguments of the assessee in light of reference to the DVO for determining FMV of the property in terms of provisions of Sec. 50C of the Act, is that although, the AO has referred valuation of the property to the DVO, but completed the assessment before the DVO submitted their report. Therefore, the matter may be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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