TaxTMI 
TaxTMI 
2015 (10) TMI 731
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....ot require any adjudication. 3. The ground No.3 pertains to the amount of Rs. 2,20,000/- relating to the amount received by the Assessee from the developer as rent compensation. According to the assessee, the AO has assessed the same as part of capital gains. However, we notice that the first appellate authority has rejected the identical ground urged before him on the reasoning that there is no discussion in the assessment order about the assessability of the amount of Rs. 2,20,000/-, referred above. At the time of hearing, the ld A.R admitted that the AO did not discuss about the taxability of Rs. 2.20,000/- referred above. Hence, we are of the view that the ld. CIT(A) was justified in rejecting this claim, as the same is not an issue ar....
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....inent to note that the AO took the cost of acquisition of asset as NIL since the cost to the father of the Assessee was NIL, as the father had inherited the property from his wife. The Assessee claimed deduction u/s 54 of the Act in respect of the cost of new flat. The AO also rejected the said claim saying that the new flat is neither purchased by the Assessee nor constructed by him. 6. The Assessee carried the matter in appeal before the ld. CIT(A). The first appellate authority held that the impugned transaction would give rise to capital gain, since under the provisions of Section 2(47) of the Income Tax Act, 1961 (the Act) "transfer" includes exchange. The ld. CIT(A) held that the AO has rightly taken the cost as on 1.4.1981 as NIL si....
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....n towards hardship and other inconveniences as part of consideration. We have already noticed that the assessee was entitled to receive a flat of 441 Sq. ft. and Rs. 2,50,000/- in cash towards hardship compensation. Since the above said amount has been given as consideration for handing over the old flat, in our view, the tax authorities are justified in taking as part of consideration. 9. Ground No.4 relates to the decision of tax authorities in taking cost of the of flat as NIL. The assessee had inherited the property from his father. The father of the assessee had inherited the property from his wife (mother of the assessee). Since the cost was NIL in the hands of the father of the assessee, from whom the assessee had inherited, the tax....
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....orders. Hence, the AO may also verify the manner of acquisition of flat and if it is found that the manner of acquisition is not in the methods listed out in sec.49 of the Act, the AO may then decide the issue in accordance with the law. 10. The fifth ground relates to the rejection of deduction claimed by the assessee u/s 54 of the Act. We notice that the Ld CIT(A) did not adjudicate this issue. We notice that the AO rejected the above said claim on the reasoning that the allotment of new flat cannot be considered as either purchase or consideration. We are unable to agree with the same, since we have already held that the handing over of the possession of the old flat is a "transfer" within the meaning of Sec. 2(47) of the Act. In consid....