2018 (12) TMI 1080

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....n the facts and in the circumstances of the case the manner and method of computation of capital gains by the Tribunal is correct and in accordance with law and fact? (ii) Whether, on the facts and in the circumstances of the case, the assessee is entitled to exemption under section 54 & 54F of the Income Tax Act? 2. We are, in fact, of the opinion that the second question arises only if we do not agree with the computation arrived at by the Tribunal. In fact, earlier the assessment was completed under Section 143 of the Income Tax Act, 1961 [for brevity "the Act"]. Subsequently there was an assessment completed under Section 147 read with Section 143(3). Again there was a rectification application filed by the assessee on the b....

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....ded share of the land. 38% of the undivided share was agreed to be sold to the builder or his assignees. 4. There was a dispute with respect to the valuation of the property as on 01.04.1981, being the date prescribed under the IT Act for the purpose of determining capital gains. The assessee, in fact, had filed an application under Section 230A for sale of the property, wherein the value shown was Rs. 8,69,250/-. The AO sought to cause interference to the same on the ground that in a wealth tax assessment in a subsequent assessment year the valuation was shown at a far lower value. We find that the Tribunal had accepted the cost indexation as carried out by the assessee on the basis of the value of the property determined and proffered ....

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....ticed from the extract of the terms of the agreement in Annexure-A, the consideration was in the form of transfer of constructed area in the super built up area of 21,000 sq.ft. The assessee, being one of the land owners, was to be granted 31% of the total built up area, i.e., 6,700 sq.ft. The dispute is insofar as what is the value to be assigned to such built up area. The assessee made the valuation at the cost of construction, being Rs. 374/- per sq.ft. The AO determined it at Rs. 929/- per sq.ft., being the market value of the constructed area in the locality. 6. The learned Senior Counsel, Government of India (Taxes) would canvass the position that the consideration has to be determined on the basis of the benefit accrued to the ass....