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TMI Blog2025 (3) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that the assessee is an individual. During the financial year 2011-12 he derived income comprised of salary, as Director of M/s Rithwik projects Pvt. Ltd to the tune of Rs. 1.10 crore, Income from House Property at Rs. 52,01,609/-, interest income to the tune of Rs. 34, 866/-and income from capital gains amounting to Rs. 9,56,412/-. He filed his return of income for the assessment year 2012-13 on 28/3/2014, declaring an income of Rs. 1,70,92,890/-. Order under section 143(3) of the Income Tax Act, 1961 (for short "the Act") was passed on 26/3/2015 determining the income at Rs. 1,72,22,931/-. 3. Subsequently the learned PCIT on examination of the assessment record found that while computing the Long Term Capital Gains in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions before the learned CIT(A) by way of appeal and pleaded, insofar as the Long Term Capital Gains in respect of the property at Nellore, that the actual sale consideration was only Rs. 9 lakhs whereas the indexed cost of acquisition was Rs. 15,72,774/- and thereby resulting in the capital loss of Rs. 6,72,774/-, but the learned Assessing Officer wrongly considered the sale consideration at Rs. 33.88 lakhs by adopting the SRO value for computing the capital gains under section 50C of the Act. Assessee pleaded that no proper opportunity was granted to him to submit that there were certain locational disadvantages in respect of such land and the land does not fetch more than Rs. 9 lakhs. Further it was pleaded before the learned CIT(A) tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under section 50C(2) of the Act and referred to the determination of the fair market value. He further submitted that it is incorrect on the part of the learned CIT(A) to state that the assessee accepted the value fixed by the stamp valuation authority and did not raise any objection before the learned Assessing Officer inasmuchas there is no column in the ITR to insist on to mention stamp duty value of asset and that the learned Assessing Officer did not give sufficient opportunity before applying section 50C of the Act market value adoption as per SRO value. 8. On a perusal of the impugned order, we find that in respect of the indexed cost of acquisition in respect of this property, assessee computed the same at Rs. 15,62,774/-, wherea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aspect and restore the same to the file of the learned Assessing Officer to refer the determination of the fair market value of the asset at Nellore to the DVO to be decided after affording an opportunity to the assessee. Grounds are answered accordingly. 10. Now coming to the addition in respect of the capital gains relatable to the property in Jubilee Hills, Hyderabad, plea of the assessee before the learned CIT(A) was that the assessee obtained the loan from EDCO India Pvt Ltd., during the financial year 2007-08 for the purpose of this property, there was an outstanding amount of Rs. 8,28,59,000/- as on 1/4/2008, the assessee obtained the parties loan of about Rs.9.7 crores from India Bulls financial services Ltd to clear of this loan t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m part of the cost of acquisition and eligible for indexation. For this purpose he placed reliance on the view taken by a coordinate Bench of this Tribunal in ITA No. 41 /Hyd/ 2022 in the case of the co-owner of the very same property, namely, Mr CM Rajeesh, wherein it was held in unequivocal terms that the interest paid to the India Bulls finances Pvt. Ltd has nexus with the acquisition of the property and therefore, such interest on the loan obtained for substituting the housing loan that was initially obtained from EDCO India Pvt Ltd., is qualified for deduction in terms of section 48 of the Act. 13. Learned DR vehemently relied upon the findings of the authorities below and justified that the subsequent loan obtained from the India Bul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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