TaxTMI 
TaxTMI 
2014 (5) TMI 957
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...., issued on 25/08/2011 was served upon the assessee. During the course of assessment proceedings, on examine of AIR information, it is seen that the assessee and among three others each have 25% share had sold non agriculture land worth of Rs.1,85,00,000/- on 13.05.2008 situated at Survey No. 603, T.P Scheme No.22, Final Plot No. 128, Mauje:- Chandkheda, Dist- Gandhinagar admeasuring of 2194 Sq, Mt. On verification of return of income filed by the assessee, it is seen that the assessee has not shown the capital gain arise of the said land from which the assessee has received sales consideration of Rs. 46,25,000/- (25% of assessee's share of Rs.1,85,00,000/-). In this regard, the assessee was asked vide this office notice U/s. 142 (1) of the I T Act dated 02.12.2011 to furnish details of purchase/sales of immovable property during the year under consideration. In response to the above, the assessee has furnished copy of sales deed dated 13.05.2008 made between Devnandan Realty Pvt. Ltd. (Purchaser) V/s. (1) Shri Amrutbhai Somabhai (2) Hemantkumar Amrutlal (3) Pravinkumar Amrutlal (Assessee) and (4) Prafulchandra Amrutlal (Seller). Further, on verification of ....
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....Jantry value of F.Y. 1981-82 the purchased value taken of Rs. 80/- in this agriculture land which is available and applicable in 01.04.1999 in this land by the State Govt. of Gujarat. Accordingly, as per the state government rules the land per Sq. rneter of the said agriculture land is also taken in this case of Rs. 80/- in the absence of rate of F.Y. 1981-82. The capital gain working after taking the value of Rs.80/- for purchase price is worked out as under:- Rs.80X3136 Sq. Mt. = Rs.2,50,880/- (Total value of the land) Rs.2,50,880 = Rs.62,720/- (1/4th assessee's share) 4 (Share) Sr No. Particulars Date of sale Date of purchase Sales Value Purchase value Purchase indexed Capital Gain 1. Land S. No.603 15.05.2008 01.04.1981 46,25,000 62,720 3,65,030 42,59,970 Index of 2008-09 :582 Index of 1981 :100" (e) The A O. further at para 3.6 of asstt. order held that: "since the assessee has artificially inflated the cost of acquisition by taking the inflated rate of land by submitting the valuation report which was originally not shown while filing the in the return of income, in....
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....t income has to be taxed in the hands of right person and A O. is not preceded to tax the right person even if the wrong person is already taxed for that income is not applicable in the case of appellant. The fact about total consideration of the land at Rs.1.85 cr. with co ownership of four parties with 25% share for each is not disputed. It is also not disputed that except this receipt all other expenditure are met out by buyer including the expenditure of non Agri. Conversion. It is therefore the only dispute is in respect of computation of long term capital gain on this transaction and share of appellant out of it. I am inclined to accept the ratio of Hon'ble supreme court in the case of Shreelekha Banerjee v/s CIT (49 ITR 112) as relied on by appellant where in Hon'ble Apex court held that: "Before the department rejects such evidence it must either show an inherent weakness in explanation or rebut it by putting to the assessee some information or evidence which it has in its possession. The department cannot by merely rejecting unreasonably a good explanation convert good proof into no proof. The A.O. not o....
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....or cost of acquisition as on 01/04/81, the long term capital gain of Rs.2,44,635 so worked out as submitted by appellant and also discussed by A.O. in asstt. Order is treated as proper and justifiable. The addition to this intent is therefore upheld. The balance of Rs.40,15,335/- (4259970- 244635) is directed to be deleted. The appellant gets relief accordingly." 5. Heard both the parties and perused the record. The only issue for consideration before us is whether while valuing the land as on 01-04-1981 for calculating the long term capital gain, the same should be treated as agricultural land or non agricultural land. There is no dispute about the fact that as on 01-04-1981 this land was agricultural land which was converted subsequently into non-agricultural land and sold as non-agricultural land during the year under appeal. The assessee has taken the valuation of the land at Rs. 960 per square meter on the basis of valuation determined by a government registered valuer by treating this land as non-agricultural land as on 01-04-1981 while AO has taken the valuation of land @ Rs.80 per square meter on the basis of the information received from the office of deputy collector (st....