2016 (4) TMI 1326

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....CIT (Appeals) has erred in considering the non-est return filed by the assessee as a valid return on the premise that the return was filed at the assessment stage. This is contrary to the facts of the case. 3. The learned CIT (Appeals) has erred in not appreciating the fact that the assessee is liable to receive 30% of the super built area as per the terms of the JDA dt.21.10.2010 & that simply because construction is still going on, the sale consideration cannot be deemed to be the market value of the property alone. 4. For these and such other grounds it is urged that the order of the learned CIT (Appeals), on the above points may be set aside and the order of the Assessing Officer be restored. 5. The appellant craves leave to add, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ruction @ Rs. 1,600 per sq. ft. and consequently brought to tax the capital gains of Rs. 5,68,19,443. The assessee challenged the action of the Assessing Officer before the CIT (Appeals). The CIT (Appeals) held that on the right of JDA, the consideration would be the guidance value of the property and it would take the character of cost of acquisition for built up area to be handed over by the developer to the assessee. Accordingly, the CIT (Appeals) has directed the Assessing Officer to compute the capital gains by considering the sale consideration as the fair market value based on the government record. Aggrieved by the order of the CIT (Appeals), the Revenue is in appeal before us. 4. We have heard the rival submissions as well as cons....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assets. On the other hand, learned AR relied on the orders of CIT(A) and submitted that the learned CIT(A) was agreed on the submissions of the assessee that for the deemed transfer of JDA the logical deemed consideration has to be guidance value of property and even otherwise it was observed by the CIT(A). Even on the date of transfer, the capital gains can only be worked out on the deemed market value of the property as per municipal records which has some basis. We have given our thoughtful consideration and rival submissions and facts and circumstances of the case and also gone through the order of the authorities below. As the case referred as Smt Prathima Reddy Vs ITO, Ward- 6(4) (2012) 25 Taxmann.com 264(Hyd.) by the learn....