2015 (6) TMI 1236

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....he Assessing Officer as long term capital gains and not appreciating the facts that the stamp duty valuation at Rs. 30.03 Lakhs did not pertain to the valuation of the said two flats received by the assessee from the developer. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciation the facts that the stamp duty valuation at Rs. 30.03 Lakhs pertained to the transfer of development rights by the owner and not the two flats received by the owner from developer in lieu of development rights." 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that the right to construct the additional floors under the DCR, 1991 was acquired without....

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....stimated the value of each flat at Rs. 35 lakhs and accordingly made an addition of Rs. 70 lakhs by rejecting the contention of the assessee that he is entitled to exemption under section 54. It may be noted that with regard to valuation of the property the AO referred it to the DVO but no valuation report was obtained till completion of the assessment. The AO has also not given any basis on which he estimated the value of the property at Rs. 70 lakhs. 6. Aggrieved, assessee preferred an appeal before the CIT(A). Placing reliance upon several decisions of the ITAT Mumbai Benches it was contended that even under section 50C of the Act the value of the property cannot be in excess of the value adopted by the Stamp Duty authorities and, at ....

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....case are almost similar to the facts of the case of Shri Ishverlal Manmohandas Kanakia (supra), where jurisdictional ITAT, Mumbai has categorically held that in a development agreement with the developer, the receipt by the assessee is a capital receipt, which cannot be brought to tax as per the law laid down by the Hon'ble Supreme Court in the case of B.C. Srinivass Shetty. The ITAT has rendered this decision in the light of the decision of the Hon'ble Apex Court. Therefore, following the decision of the jurisdictional ITAT, it is held that in the instant case also there is no scope for taxing the capital gain in the hands of the appellant. Accordingly, the addition made by the AO deserves to be deleted. 8. Aggrieved, Revenue is....