TaxTMI 
TaxTMI 
TaxTMI 
2014 (6) TMI 732
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.... taxable income of Rs.1,99,36,802 from long term capital gains. As it appears from facts on record, the assessee challenged the said assessment order before the CIT (A). Being unsuccessful before the CIT (A), the assessee carried an appeal before the Income-tax Appellate Tribunal. The Income-tax Appellate Tribunal, Hyderabad Bench vide its order 7-5-2013 passed in ITA No.1687/Hyd/10 remitted the matter back to the file of the Assessing Officer with a specific direction to compute capital gains only in respect of sale of built up area received by the assessee. Of course, the Income-tax Appellate Tribunal without deciding the other issues such as addition of Rs.18,55,000/- as under valuation in property and applicability of section 50C remitted the matter back to the file of the Assessing Officer. In pursuance to the direction of the Income-tax Appellate Tribunal as above the Assessing Officer initiated assessment proceedings afresh by issuing a notice to the assessee. During the assessment proceedings, on verification of breakup of sales, the Assessing Officer noticed that the assessee has shown an amount of Rs.4,15,33,255/- as receipts from sale of floor space. The Assessing Office....
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....ived by the assessee and handed over to the purchasers of the floor space income was admitted by the assessee. The Assessing Officer after considering the explanation of the assessee came to a conclusion that the amount received by the assessee towards sale of built up area of 9443 sq.ft in 'Mayank Towers' and 9650 sft., in Mayank Plaza is liable for short term capital gains and accordingly treated the receipts of Rs.4,15,33,255/- as short term capital gains. Further, the Assessing Officer treated an amount of Rs.18,55,000/- as sale consideration under stated by the assessee upon considering the fact as per the sale deed No.2266/04 dated 27-8-2004 in respect of flat in Mayank Towers, the sale consideration received by the assessee is Rs.50 lakh whereas the assessee has admitted Rs.31,45,000/-. He therefore added he amount of Rs.18,55,000/- being the shortfall in the amounts shown by the assessee. Further, the Assessing Officer noticed that as per the valuation of the registering authority of the State Government, there is a difference in valuation in stamp duty purpose and the sale consideration shown in the sale deed which amounted to Rs.9,28,951/-. The Assessing Officer invoking ....
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....elf has shown the amount of Rs.4,15,33,255/- towards amount received on sale of floor space the CIT (A) was not justified in accepting the assessee's revised claim of sale consideration received on sale of floor space amounting to Rs.1,23,02,000/-. It was submitted by the learned DR that the Assessing Officer has fully complied with the directions of Income-tax Appellate Tribunal by not assessing capital gains arising out of development agreement but has confined himself in computing capital gains arising from sale of built up area. 8. The learned DR further submitted that the CIT (A) while granting relief to the assessee has failed to discuss anything with regard to the additions made of Rs.18,55,000/- on account of understatement in sale consideration and amount of Rs.9,28,951/- u/s50C of the Act. 9. The leaned AR, on the other hand, strongly supporting the order of the CIT (A) submitted that the assessee has not offered anything towards capital gains in the return of income filed for the impugned assessment year. The assessee has shown receipts of Rs.4,15,33,255/- towards sale of floor space which is without any basis. The leaned AR submitted that when the Income-tax Appellate....
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....order of co-ordinate bench, the Tribunal has issued a clear direction to the Assessing Officer to compute the profit/capital gains arising from sale of built-up area together with an undivided interest in land, if any made during the year under consideration. On a perusal of the consequential order passed by the Assessing Officer, it is seen that the Assessing Officer in para 1.2 of the assessment order in fact has observed that the issue of taxing of capital gains at the time of entering into development is not to be considered. It is further evident from the discussions made in para -13 of the assessment order, the Assessing Officer is only considering the sale of built-up area in Mayank Towers and Mayank Plaza which is taken at Rs.4,15,33,255/- alleged to have been admitted by the assessee in the return of income. However, as it appears from the submissions made by the assessee before the CIT (A) as well as before us during the year built-up area comprising of seven flats in Mayank Towers were sold by the assessee against total sale consideration of Rs.1,23,02,000/- only and not Rs.4,15,33,255/- as considered by the Assessing Officer. On a perusal of the original asst. Order dat....