2018 (5) TMI 629

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....,000/- and acceptance of sale consideration at Rs. 3,20,00,000/- by the CIT-A. 3. On examination of documents submitted/gathered in respect of long term capital gain, the AO found that the assessee initially entered into an agreement for sale of land situated at Kashidih, Sakchi for Rs. 3,20,00,000/- with Shri Jai Prakash Singh on 26-03- 2012. From which the AO found that the purchaser, Shri Jai Prakash Singh had paid Rs. 11,00,000/- in cash and balance amount of Rs. 3,09,00,000/- is to paid before negotiation. From the sale deed, which was executed on 27-07-2012 the AO found the sale consideration at Rs. 1,75,00,000/- and the details of payments made to Shri Viswanath Prasad Vishwakarma, the assessee herein. The AO found that while comp....

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....ed that the agreement for sale of land was made for a consideration of Rs. 3,20,00,000/- and on the legal advice it was reduced to Rs. 1,75,00, 000/- on mutual agreement as the property in question fallen under the purview of CNT Act. 6. In light of the above facts & circumstances of the case, AO computed the sale consideration of land & long term capital gain towards sale of land as under:- Sale consideration of land Rs.1,86,00,000/- Commutation of Long Term Capital gain Sale Consideration Rs.1,86,00,000/- Deduction u/s. 48   (i) Cost of acquisition after indexation Rs.42,60,000/- (ii) Expenditure on transfer Rs. 10,00,000/- Rs.52,60,000/- Balance Rs. 1,33,40,000/- Deduction u/s. 54 (being amo....

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..... 02/05/2012 45.00 04. 02/06/2012 25.00 - 16/06/2012 25.00 TOTAL   145.00   9. It was submitted as per terms & conditions of the agreement, the purchaser has paid an amount of Rs. 11 lakhs on the said date of execution and as the purchaser agreed to pay the balance amount of Rs. 3,09,00,000/- one week before the registration of the sale deed and the assessee raised the same as detailed above. 10. The CIT-A considering the detailed submissions of assessee and following the case laws as relied on by the assessee directed the AO to accept the sale consideration at Rs. 3,20,00,000/- and calculate the capital gain accordingly and to delete the addition of Rs. 1,34,00,000....

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....he ld.DR. Hence, we uphold this finding. In our view the ld. CIT(A) rightly deleted the addition u/s. 69 of the Act. Hence, these grounds of the revenue are dismissed. 14 Regarding ground no. 3, we find from records, that the assessee filed two fair market value reports before the AO i.e one on his own and another by registered valuer. The CIT-A observed that the assessee filed no substantive documents or basis for such indexed cost acquisition before the AO, thereby the CIT-A confirmed the fair market value as determined by the AO. The issue is in before us in respect of ground no. 3 whether the CIT-A justified in directing the AO to consider the assessee's claim of exemption u/s. 54 of the Act. We find that the assessee sold land & bui....