TMI Blog2009 (12) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... - As the assessee was engaged in the business of property development, the activities of the assessee were treated as business. Therefore, while computing the income, the question of indexation cost was not considered and the cost of the land was taken as Rs.3,19,49,496/-. In the balance sheet, the value of the property has been shown as Rs.2,55,87,815/- under current assets. The Assessing Officer held that though the apparent sale consideration was for Rs.5 Crores, the sale price should be taken at the amount as fixed by the Registering Authority on the basis of the guideline value of Rs.6,94,45,920/-. – held that - The invocation of Section 50C of the Act as can be seen from the provisions of the Act can be made in order to find out the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 1.11.2004 admitting an income of Rs.78,23,894/- and claimed set off of the entire income against the earlier years' losses and claimed capital loss of Rs.83,64,350/-. While completing the assessment, the Assessing Officer noticed that the assessee claimed a capital loss on the sale of the property at Greams Road. The consideration shown was for Rs.5 Crores. However, while registering the sale deed, the Sub.Registrar took the guideline value of Rs.6,94,45,920/- and levied the stamp duty and registration charges on the said value. The assessee was given power of attorney by the vender and the assessee is engaged in the business of investment in shares and property development. As the assessee was engaged in the business of property develo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration of Rs.5 Crores. 4. Aggrieved by the order of the Commissioner of Income Tax (Appeals), the Revenue filed an appeal before the Income Tax Appellate Tribunal. By reason of the order impugned in this appeal, the Tribunal hel that the provisions of Section 50C were not applicable when the income was treated as business income and on that ground dismissed the appeal. As stated earlier, the correctness of the said order is now canvassed in this appeal by the Revenue. 5. We have heard learned counsel for the Revenue and perused the materials on record. 6. It is not in dispute that the activity of the assessee is property promoter. It can be gathered from the facts available on record that the assessee has obtained power of attorney ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct can be made in order to find out the true value of the capital asset. In the very facts and circumstances of the case, the property in the hands of the assessee was treated as business asset and not as capital asset, there is no question of invoking the provisions of Section 50C of the Act, which is, as already stated, pertaining to determining the full value of the capital asset. The Tribunal has taken in aid the observation of the Mumbai Bench in the case of Interlok Hotels (P) Ltd Vs. ITO (reported in 2009 122 TTJ (Mumbai) 145), which, in our considered view, is in consonance with the statutory provisions and is well in accordance with law. K.RAVIRAJA PANDIAN, J AND M.M.SUNDRESH, J 7. In the above stated facts and circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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