2022 (6) TMI 1273

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....re and is not pressed at the time of hearing and accordingly dismissed as not pressed. 3. The issue raised in ground no. 2 is against the order of Ld. CIT(A) confirming the addition of Rs. 5,04,451/- as made by the AO on account of long term capital gain. 4. Facts in brief are that the assessee sold a plot measuring 52300.5 sq. ft. for a consideration of Rs. 17,00,000/- which was purchased by the assessee on 17.05.1978 at Rs. 20,000/-. The assessee's share in the said the said plot was 1/4th. The AO computed the capital gain by applying the provisions of Section 50C of the Act by taking deemed sale consideration at Rs. 21,60,004/- in terms of stamp authority valuation and taking the fair market value at Rs. 21,000/-, the index cost wa....

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.... without giving any reasoning and justification. The Ld. A.R. vehemently submitted before us that the AO should have referred the matter to the DVO for ascertaining the fair market value as on the date of sale as well as on 1.04.1981 and as the calculation made by the AO is just a guess work which is based on presumptions and assumptions without any reasonable and rationale basis and therefore the same may to be sent back to the file of the AO for assessing the correct amount of capital gain after making necessary reference to the DVO for ascertaining the fair market value of the plot as on the date of sale as well as on 1.4.1981. We find merits in the contentions of the assessee that the addition made by the AO is just on the basis of pres....

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....er in a registered partnership firm M/s Damodar Cold Storage with 12.5% share in the profit. The assessee continued in the firm till 14.1.2011 and retired w.e.f. 15.1.2011. His share in the partnership firm as per the partner's capital account worked out to Rs. 30,11,251/-. The AO upon perusing these facts calculated the deemed capital gain on the properties owned by the firm in the following manner:- i. Building : Rs. 65,99,116/- ii. Electrical Installation : Rs. 2,31,102/- iii. Plant & Machinery : Rs. 4,89,397/- iv. Insulation : Rs. 2,29,001/- v. Furniture & Fixture : Rs. 47,788/- vi. Wooden Rack : Rs. 6,71,284/-   Total : Rs. 82,67,688/- The AO ca....

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....ts or stock in trade or both from the specified entity in connection with reconstitution of said entity, then the said entity shall be deemed to have transferred capital asset or stock in trade or both to the partner in the year in which such capital asset or stock in trade or both have received by the partner. The Ld. Counsel for the assessee submitted that since there was no provisions in the Act to assess the deemed capital gain in the hands of the retiring partner upon reconstitution of the firm, therefore the addition as calculated by the AO of Rs. 70,39,460/- on account of short term capital gain in respect of various assets of the firm on hypothetic basis may kindly be deleted. 12. The Ld. D.R on the other hand relying on the orde....