TaxTMI 
TaxTMI 
2019 (8) TMI 844
X X X X Extracts X X X X
X X X X Extracts X X X X
....operty for professional activity of script-writing and therefore, the said properly was out of the purview of section 23 of the Income-tax Act, 1961, without appreciating that the assessee had never claimed the said property as business asset and had not claimed any depreciation in his books of accounts. 2. On the facts and circumstances of the case and in law, whether the Ld. CIT(A) was justified in restricting the addition of deemed rental income in respect of house properties at SVP Nagar and at Millat Nagar to 4% of book value from 8% of book value as adopted by the AO without appreciating the judicial precedence to that effect such as the decision of Hon'ble Gujarat High Court in the case of BipinbhaviVadilal family Trust vs C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....illat Nagar @ 8% of value of the property, disallowance of 15% of various expenses debited into the profit and loss account, disallowances of expenditure incurred in relation to exempt income and additions towards re-computation of capital gain from sale of office premises. The assessee carried the matter in appeal before the CIT(A). The Ld. CIT(A), for the detailed reasons recorded in his appellate order dated 15/03/2017 deleted additions made by the AO towards disallowances of expenditure incurred in relation to exempt income u/s 14A r.w.Rule 8D(2)(ii) of the Rules, 1962, and also deleted additions made by the AO towards recomputation of capital gain from sale of property. However, allowed partial relief, in respect of deemed ALV of house....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Therefore, it is incorrect on the part of AO to estimate ALV @8% of the book value of the property. 4. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. We noted that the Ld. CIT(A) had recorded categorical findings in its appellate order at Para no. 5.2 to the effect that the assesee is using residential bungalow at Lonawala for the purpose of his professional work as a film director including scripting writer, editor and story writer. We further noted that the Ld. CIT(A) has also recorded categorical findings that the AO has estimated deemed ALV on suspicious and ceremonious manner without there being any contrary evidences with him to prove that the claim of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ue fails to bring on record any contrary evidences to counter the findings of facts recorded by the CIT(A). Hence, we are inclined to uphold finings of Ld.CIT(A) and reject ground taken by the revenue. 6. The next issue that came up for our consideration from ground No. 3 and 4 is computation of capital gain from sale of office premises. The facts borne out from records indicates that the assessee has told office premises for a consideration of Rs. 1,60,00,000/-, whereas the market value of the property for the purpose of stamp duty was fixed at Rs. 2,57,46,500/-. Therefore, the AO called upon the assesee to furnish necessary details including documents to prove date of purchase and sale. In response, the assessee has filed necessary det....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mp duty valuation and thus, overlooked the provision of section 50C of the Act, 8. The Ld. AR for the assesee, strongly supporting order of the CIT(A), submitted that the Ld. CIT(A) has rightly appraised facts in light of evidences filed by the assessee, including letter of allotment of the flat to come to the conclusion that the assets sold was a long term capital assets, consequently surplus generated from sale of asset is assessable under the head long term capital gains. The Ld. AR, further submitted that in so far as full value of consideration, the assessee has filed a valuation report from the registered valuer, where the value of the property has been determined at Rs. 1,76,48,000/- The Ld. CIT(A) after considering relevant facts....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... acquisition of property, the date of allotment of property needs to be considered. The Ld. CIT(A) after considering relevant facts has rightly held that property in question was a long term capital asset and surplus from sale of such property is assessable under the head long term capital gain. 10. As regards, adoption of full value of consideration as per ready reckoner value, we find that the Ld. CIT(A) has recorded categorical finding in light of valuation report filed by the assessee and also contention of the assesee that the property in question was not having proper electrical installation and water supply and also the municipal authorities have not issued valuation certificate and accordingly, ready reckoner value cannot be cons....