2015 (12) TMI 133

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.... learned CIT(A) erred in confirming the addition made by the AO towards the exemption claimed u/s. 54B of the Act without appreciating the submissions of the Appellant. 3) The learned CIT(A) ought to have appreciated that the Appellant is not an karta of HUF family, he is one of the coparcener of the family and the Appellant got a share from ancestral property. Accordingly it should be treated as long term capital gain and allowed the claim of the Appellant. 4) The learned CIT(A) erred in confirming the addition made by AO towards the exemption claimed u/s. 54F of the Act without appreciating the submissions of the Appellant. 5) The learned CIT(A) grossly erred in confirming the action of the AO towards issuing two demand notices d....

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....rs for a consideration of Rs. 1.30 crore vide agreement of sale. Apart from this, assessee has also sold property bearing survey No.112, being power of attorney on behalf of Smt.Kaveramma for a consideration of Rs. 1.36 crores. Both these properties were claimed to be agricultural lands and the assessee has claimed deduction u/s 54B on the ground that the assessee and coowners purchased further agricultural land during the specified period. A part of the consideration was also invested in construction of the residential unit and therefore, the assessee claimed deduction u/s 54F. The AO, while completing assessment u/s 143(3) denied both the deductions claimed u/s 54B as well as54F by treating capital gain as short-term capital gain(STCG). T....

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....iled during the course of the assessment proceedings, the assessment is completed as under: A.Property bearing no. 77, Panathur village, Varthur hobli.Bangalore East. The argument as generated during the course of proceedings is discussed below; 1. The compensation received of Rs:1,30,00,000/- in respect of property bearing Survey No. 77 of Panathur village,Varthur hobli, Bangalore East, having 2 acres and 30 guntas of land. 2. Sale consideration received as per agreement in respect of property bearing Survey No. 112 of area 2 acres and 07 guntas for Rs: 1,36,00,000/-. While computing the taxable income, the assessee has claimed deduction u/s 54B by treating the transaction as Long Term Capital Gain and also the indexed cost ....

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....hare in the ancestral property. Therefore, the issue is required to be examined by considering the assessability of the capital gain in the hands of the other joint owner/co-share/co-partitioner of the property of the larger HUF. 6. As far as the property at survey No.112 is concerned, there is no dispute that the said property was acquired by the ancestors of the assessee and therefore, for the purpose of computation of capital gain u/s 48 of the Act, the provisions of sec.49(1) and 47 are relevant to determine the date of acquisition. It is well settled proposition of law that if the property is acquired by inheritance or partition or settlement of ancestral property then the date of acquisition would be the date when the property was ....

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....roperty situated at survey No.112, Panathur village, Varthur Hobli, Bangalore East to the extent of 2 acres and 7 guntas for a consideration of Rs. 1,36,00,000/- and claimed indexed cost of acquisition, investment in agricultural land etc. In this regard, it is observed from the Agreement for Sale dated 13/10/206 executed and registered in the Sub-Registrar office, Bangalore South Taluk vide Book No.18393/67 dated 13/10/2006, the assessee and others have transferred this property in favour of Sri B.N.Adarsh for a consideration of Rs. 1,36,00,000/- during the financial year 2006-07 relevant to assessment year 2007-08. Whereas the assessee has not disclosed this long term capital gains for the assessment year 2007-08. The claim made by the as....