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TMI Blog2015 (12) TMI 1897X X X X Extracts X X X X X X X X Extracts X X X X ..... brief. The assessee is an architect by profession and is also director in various companies of Raheja Group. During the year under consideration, he has sold a Guest House for a sum of Rs. 16.11 crores and declared long term capital gain thereon at Rs. 8.41 crores. The AO noticed that the assessee has treated the Guest house as his business asset and accordingly, he was claiming depreciation thereon. The Written down Value of the Property stood at Rs. 4.93 crores. Hence the assessee should have computed "Short term capital gain" on sale of Guest house as per the provisions of sec. 50 of the Act. Accordingly the computation of Long term Capital gain made by the assessee was not found to be in accordance with the provisions of the Act. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ACE Builders Pvt Ltd (281 ITR 210) to hold that the provisions of sec. 50 shall not convert a long term capital asset into a short term capital asset. Aggrieved, the revenue has filed this appeal before us. 4. The ld D.R placed heavy reliance on the order of the AO and submitted that the assessee is belonging to a Raheja Group, which is being assisted by the professionals. He further submitted that the explanation given by the assessee during the penalty proceedings that the mistake occurred due to wrong understanding of the accountant is very bald and vague. Accordingly he submitted that the assessee has failed to offer proper explanation before the AO either during the course of assessment proceedings or in the penalty proceedings. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the same was a mistake committed by the accountant. 7. However, as submitted by the Ld D.R, the assessee belongs to a well known business group and hence the explanation given by the assessee is not plausible. The fact the assessee has been claiming depreciation on the value of guest house is very much available on the record. Hence the explanation that the "accountant" has committed a mistake does not appear to be reliable one. Further, the assessee has made a bald statement without substantiating the same with the name of the accountant and his explanation. 8. The total income of an assessee for a particular assessment year is computed in accordance with the provisions of the Act by having regard to the accounts of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court in the case of Reliance Petroproducts P Ltd (322 ITR 158), wherein it has been observed that making a certain claim which is not acceptable in the eyes of law does not amount to furnishing inaccurate particulars of income. In our view, the above said decision is not applicable in the facts of the present case, since it is not a case where the assessee has made a claim on some plausible basis, but the same became unacceptable in the eyes of law. It is also not simple case of changing the heads of income due to difference of opinion. On the contrary, the assessee himself has accepted that the gains arising on sale of guest house is assessable as Short term Capital gain. Hence, in our view, the facts of the case show that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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