2008 (12) TMI 255

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....earned CIT(A) has erred in deleting the addition of Rs. 2,62,263 made by the AO under the head "Capital gain" on sale of plot by adopting index cost of purchase of plot during the year 1990-91, particularly when the title of the plot was issued by the society on 27th June, 1990. 3. Both the parties were heard regarding the issue raised by the Department and its legal implications. 4. During the course of hearing learned representative of the Department has vehemently argued supporting the order passed by the AO and assailing the order passed by the learned CIT(A) contending inter alia that the learned CIT(A) has not properly appreciated the fact that the title of plot having been issued by the society to the assessee on 27th June, 199....

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....e society, namely, Adhunik Grah Nirman Sahkari Samiti Ltd. was facing some legal problems and necessary sale deed was not executed in favour of the assessee but the possession thereof was given soon after payment of consideration in 1971 itself. Later on after clearing the legal hurdles, the society has issued Patta to the assessee on 27th June, 1990. The condition of cl. 6 on the reverse side of Patta clearly states in unequivocal terms that the Samiti has sold the plot to the assessee in 1971 and the Patta is issued to the assessee in lieu of the sale made in 1971 when itself the possession of the said land was handed over to the assessee. The AO has totally ignored this aspect. Moreover the assessee has established before the AO by produ....

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....n from 1971 to 1977 the assessee has paid Rs. 2,500 towards conversion and development charges to the said plot. These facts are supported by the entries made in the cash book of the firm in which assessee is a partner and members register of the society which were produced before the AO by the assessee. Due to some hurdles the society could not register the plot in the name of assessee though the possession of the same was given in 1971 itself. But this fact is supported by the cl. 6 contained on the reverse side of the Patta issued to the assessee on 27th June, 1990 which categorically mentions that the plot is sold to the assessee and possession thereof was given to the assessee by issuing necessary documents and this Patta issued in lie....