2022 (7) TMI 496

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.....w.s 147 and U/s. 250(6) of the Act for the AY 2006-07. Cross Objections filed by the assessee. 2. Briefly stated, the facts of the case are that the assessee received a residential house in Vijayawada from her husband Late Sri Ivaturi Sivaprasad as per Regd Will dt 17/11/1977. The assessee filed her return of income for the AY 2006-07 on 6/2/2008 declaring a total income of Rs. 11,93,700/-. The assessment was subsequently reopened U/s. 147 of the Act and statutory notices U/s. 143(2) and 142(1) were issued and served on the assessee. The assessee through her Authorized Representative (AR) filed written submissions before the AO. Considering the submissions made by the assessee's AR, the Assessing Officer assessed the total income at Rs. 6....

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.... of the case. 2. The Ld. CIT(A) erred in directing to exclude the cost of land while calculating the sale consideration ignoring the provisions of section 48 of the IT act, as per which the full value of consideration received on transfer of capital asset (undivided proportionate area of land, constructed area of the flat and common area of the building are also transferred by the assessee as mentioned in the registered sale deed) is to be taken into account for computing the capital gains. 3. The Ld. CIT(A) erred in directing to adopt the rate of constructed area @ Rs. 300 per sq ft without appreciating the fact that the AO has adopted the value as per SRO records, applying the provisions of section 50C of the IT Act, which is mandator....

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....e fact which was not disputed by the Revenue, and hence adopting the rate of Rs. 400 per sft towards computation of value of construction is not a correct proposition. The Ld. AR also argued that as per the SRO value of Rs. 400 per sft towards cost of construction in accordance with the provisions of section 50C of the Act is for the completed building and not for the incomplete building. The Ld. AR therefore prayed that the order of the Ld.CIT(A) on this ground shall be sustained. The Ld. AR further submitted that the land cost included in the computation of capital gains at Rs. 533 per sft shall be deleted. The Ld. DR forcibly argued that the AO has rightly concluded the computation of cost of construction at Rs. 400 per sft as per the l....