2020 (12) TMI 722

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....alled for hearing on the alleged apparent mistake contemplated under s.254(2) of the Act in the substantive order, the Ld.AR for the assessee submitted that the Tribunal committed error in rejecting ground of appeal No.(1)(ii) by which it was held that purchase of land falls in Financial Year 2013-14 (AY 2014-15) to which amended provision of section 56(2)vii)(b) of the I.T. Act is applicable. It was contended that the purchase transactions of the immovable property were carried out and completed prior to effective date of amendment in section 56(2)(vii)(b) of the Act and therefore, the land purchase transaction in question are not hit by amendment carried out in section 56(2)(vii)(b) of the Act. 3. It was further contended on behalf of As....

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....e in the hands of the assessee in proportion to his share in land holding. The CIT(A) has upheld the aforesaid action of the AO. We do not see any infirmity in the order of the CIT(A) in this regard. Section 49(4) of the Act clearly provides that the benefit of the inflated cost of acquisition in view of the deeming provisions under s. 56(2)(vii)(b)(ii) of the Act would be available at the time of sale of the asset and capital gains will be accordingly reduced to the extent of such increase in deemed consideration. The CIT(A) has given appropriate relief in this regard. We thus see no wrong in action of the CIT(A). The plea of the assessee that the agricultural land is rural land was raised for the first time before us. In the absence of an....