2014 (7) TMI 1335

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.... return of income for A.Y. 2007-08 on 14.8.2008 admitting the total income at Rs. 1,14,120. In the assessment completed u/s. 143(3) of Income-tax Act, 1961, the Assessing Officer made an addition of Rs. 51,19,683 towards short term capital gains after taking into consideration the sale consideration of Rs. 70 lakhs. Accordingly, the Assessing Officer determined the total income at Rs. 50,92,035. 3. In appeal before the CIT(A), the CIT(A) while allowing the appeal partly directed the Assessing Officer to adopt the sale price of flat at Rs. 38,56,040 and compute the capital gain accordingly. 4. Against the order of the CIT(A), both the Department (in ITA No. 896/Hyd/2013) and the assessee (in ITA No. 853/Hyd/2013) filed appeals before t....

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....e case of Dy. CIT Circle 7(1), Hyderabad V/s. Khaja Kutubuddin Khan, Hyderabad in ITA No. 1451 & 1452/Hyd/2008, a copy of which has been furnished before us by the learned counsel for the assessee. While doing so, the CIT(A) has not adhered to the procedure as per S. 50C in its totality, which mandated, in the event of dispute by the assessee as to the adoption of value as per SRO, a reference to the valuation cell. That apart, there is a dispute with regard to the nature as to the condition of the apartment sold. While it is the case of the assessee that what is sold is a semi-finished one and not a completed one, the case of the Revenue is that the works got done through Bhoopal Reddy and Co. cannot be accepted as genuine, and what the as....

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.... submits that the order of the Tribunal is resulting in enhancement of income of the assessee as assessed by the Assessing Officer which is not allowed under the provisions of the Act and the same has to be revised. 6. We have gone through the miscellaneous petitions. While computing capital gains received from sale of flat, the Assessing Officer has taken the sale price at Rs. 70 lakhs and worked out the capital gains arising from sale of such flat at Rs. 51,19,683 whereas the CIT(A) has taken the sale price at Rs. 38,56,040. However, both the authorities have omitted to consider the applicability of provisions of s. 50C in determining the deemed full value of consideration received. In the impugned order the Assessing Officer was direc....