2020 (2) TMI 826

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....ey are descriptive and argumentative in nature. However, prayer clause at the end of appeal exhibiting grievance of the assessee, reads as under: 1. The addition on account of reducing the cost of acquisition FMV as on 01.04.1981 and subsequently reducing the Index cost by Rs. 21,48,394/- confirmed by the ld.CIT(A) may kindly be deleted." 3. Brief facts of the case are that the assessee has filed its return of income on 11.09.2011 declaring total income at Rs. 7,76,47,010/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts revealed to the AO that the assessee has declared long term capital gain on sale of land at Rs.....

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....out value at Rs. 37,10,246/- as against Rs. 58,58,640/-. In other words, FMV prior to indexation was worked out by the assessee at Rs. 8,24,000/- (Rs. 5423 sq.mt x Rs. 150/- ). The AO has worked out at Rs. 5,21,835/- (Rs. 5493 sq.mt. x 95). This exercise has given a difference in the computation of capital gain, and the AO has enhanced capital gain by a sum of Rs. 21,48,394/-. Similarly, he did not allow alleged improvement cost of Rs. 20 lakhs and made addition of Rs. 20 lakhs also. Dissatisfied with the assessment order, the assessee carried the matter in appeal before the ld.CIT(A), but appeal did not bring any relief to the assessee. 4. With the assistance of the ld.representatives, we have gone through the record carefully. A perusa....

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....ss. • Also plot can be sub divided if required and most of sub divisions can have direct entry from road. • LAYOUT PLAN SHOWING PROPERTY AND PROPERTY OF COMPARATIVE SALE INSTANCES IS ENCLOSED • Considering all the above points land rate of Rs. ISO/ sq.mts adopted for valuation is fair and reasonable in my opinion". 5. The ld.CIT(A) while rejecting contentions of the assessee observed that the assessee failed to give any specific evidence in support of adoption of rate of Rs. 150/- per sq.meter. It has only produced three sale instances, and there is no reason as to why nearest sale instance from the appointed date i.e. 1.4.1981 should not be adopted. To our mind, moot point is to ascertain what is t....

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....ively in connection with such transfer, and (ii) the cost of acquisition asset and the cost of any improvement thereto. The assessee has given this piece of land on rent to "PPP". The assessee has filed computation of income shown by the "PPP". In this return "PPP" has declared short term capital gain under section 50 at Rs. 19,52,953/-. It has claimed depreciation on this shed. In the past, these details were submitted before the AO. The AO did not inquire from "PPP" whether they have erected a shed or not. He simply disbelieved assertion of the assessee on the ground since it has rented out the land, "PPP" would not have construed this shed. In other words, according to the AO since ownership title of the land was not with the "PPP", ther....