2018 (12) TMI 1395

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.... in dismissing the appeal filed by the Revenue by accepting the sale consideration at Rs. 2,51,00,000/, accepted by the Revenue in order u/s 269 UL(3) in place of Rs. 4,63,73,500/considered by the Assessing Officer on the basis of valuation made by the Stamp Duty Authority?" 3. Brief facts are that the respondent assessee for Assessment Year 200506 had filed the return of income declaring total income of Rs. 1,63,86,880/. The return was taken in scrutiny. It was noticed that the assessee had entered into a Memorandum of Understanding ("MOU" for short) with Mahavir Builders, agreeing to assign them development rights in respect of the immovable property for a consideration of Rs. 2.51 crores (rounded off). This was done after obtaining ne....

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....2.1 We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the estate was the owner of the property known as Vijay Mahal located at Malad. The assessee entered into a MOU with Mahavir Builders providing them with development rights in respect of property for a consideration of Rs. 2,51,00,000/. The appropriate authority (Income Tax Department) gave no objection to grant of development rights at the agreed consideration of Rs. 2,51,00,000/u/ s 269UL(3) dated 12.06.2001. The said MOU was converted into a formal development agreement in September, 2004 on the same terms and conditions. The stamp duty authorities stamped / assessed the value at Rs. 4,63,73,500/. The Assessing Officer....

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....he area and the assessee is not the owner of the TDR, thus, cannot be saddled with the value adopted by the stamp duty purposes as the assessee is only the owner of 3872 sq.mts. for which he received the consideration of Rs. 2,51,00,000/, thus, the capital gain has to be computed on the amount which the assessee actually received, consequently, we are in agreement with the finding of the ld. Commissioner of Income Tax (Appeals) that on the basis of deeming provision of section 50C, no addition can be made. We affirm the stand of the ld. Commissioner of Income Tax (Appeals), thus, appeal of the Revenue is dismissed." 5. From the record, it can thus be seen that there were two significant factors why the CIT(A) and the Tribunal did not ado....