TaxTMI 
TaxTMI 
2019 (10) TMI 601
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....tion of land as on 01.04.1981 as per approved valuer's report because the assessee has also acquired some land after 01.04.81. Therefore by taking valuation of land as per approved valuer's report means that the land purchased in 1993 has not been distinguished for indexation purpose. When this value showed very huge appreciation of property within 3 to 6 years, the AO was fully justified in rejecting the report prepared at the behest of the assessee and. calculating the capital gain after providing for indexation at the cost price. 2. Deleting the addition of Rs. 2,33,77,352/- made as short term capital gain when (A) the assets on which capital gain arose is on depreciable assets for which the issue involved was computation of c....
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....land and building of INR 541,500,000 should not be taxed against the long-term capital gain shown by the assessee company. 5. The assessee objected to the same and stated that it is not correct to include land and building in the same block of assets and consider the transfer as short-term capital gain. Assessee also submitted that it has never claimed appreciation on the land however; the answer of the assessee on the issue of depreciation of building was silent. 6. Learned assessing officer noted that assessee company had sold its land and building shed to M/s Bhushan steels Ltd as per sale deed dated 12/03/2008 for INR 101050000/- admeasuring 424490 m² along with building and on the same date of INR 183700000/- admeasuring 44535....
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....000000/- and net taxable long-term capital gain was computed at INR 1 52520244/-. Against this the assessee has shown the long-term capital gain of Rs. 117791426/- and therefore the addition on account of the long-term capital gain on sale of land was made of INR 34728818/-. With respect to the short-term capital gain on sale of building he considered the sale value at INR 3 0075600/- and computed the short-term capital gain thereon of INR 2 3377352/- accordingly the assessment order was passed on 30/3/2013 under section 148 read with section 143 (3) of the act. 7. Assessee aggrieved with the order of the learned assessing officer has challenged the same before the learned CIT - A. The learned CIT - A upheld the taxation of INR 2 3377352/....
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....sset to the assessee or the fair market value of that asset as on 1st Day of April 1981, at the option of the assessee. He further held that the option is with the assessee to opt for the fair market value as on 1/4/1981 by submitting the valuation report from an approved valuer. The act does not provide option to the assessing Officer to not to accept the valuation report regarding the fair market value unless he is able to prove by bringing evidence on record that the valuation report is not correct. He further held that there is no dispute that the land in question was acquired by the appellant prior to 1/4/1981. In view of this, he held that the AO was not justified in rejecting the valuation report of approved valuer showing the value ....
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....has been confirmed and therefore there is no grievance of the revenue. He further submitted that issue is not squarely covered by the decision of the honourable Supreme Court in case of CIT vs. V.S Dempo Co Ltd 74 taxmann.com 15 (SC). 15. We have carefully considered the rival contention and perused the orders of the lower authorities. Brief facts of the case are that the business of the appellant Company was to manufacture of steel and P.V.C. pipes at its works at Ghaziabad (UP). The appellant company filed its return of income for the assessment year 2008-2009 declaring the total income at Rs. 12,09,46,810. The appellant company sold part of the immovable property consisting of land and building on 12th March, 2008 for Rs. 18,37,00,000 ....
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....ation of the land as on 01/04/1981 at INR 9 102600/- wherein the valuer has taken the land at the rate of INR 1 30/- per square metre. The learned assessing officer has rejected the valuation report stating that it is without any basis. The learned CIT - A has held that assessee has been given an option according to the provisions of section 55 (2) (b) of the income tax act to adopt the fair market value as on 1/4/1981 by submitting the valuation report from an approved valuer to substitute in option to the cost of acquisition of the asset. Therefore, this is a beneficial provision. The learned assessing officer has not put on record any evidence to show that the valuation report obtained by the assessee is devoid of any merit or the prevai....