TaxTMI 
TaxTMI 
2016 (9) TMI 1631
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....and the same was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act') and subsequently assessment was re-opened u/s 147 of the Act after following the due procedure. 3. In the assessment order, the A.O. has observed that the assessee Smt. Ivaturi Mahalakshmamma received a residential house at Dr.No.38- 8-7, M.G. Road, Vijayawada from her husband Late Sri Ivaturi Sivaprasad as per regd. Will dated 17.11.1977. She had given such property for development to M/s. Dutta Constructions, Vijayawada vide agreement dated 29.1.2001. As per the said agreement, she had to receive 50% of the constructed area of the commercial complex to be constructed by the developer. In the return of income filed on 6.2.2008, th....
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....ities vide approval no.140.I2QQ. Subsequent to the approval only the construction was started and partly completed during the financial years 2004-05 and 2005-06 only. As such the assessee's claim that the capital gains are assessable in the year 2001-02 is not correct. 3. As verified from the Regd. Sale deeds executed by the assessee and the second party jointly vide document No.536/05 dt.05.02,2005 and 3755/04 dated 15- 10-2004, it was recorded therein at page.2 thereof, among other things as follows (para 5 thereof) "The schedule property is devolved upon the 1" party (viz Smt. lvaturi Mahalakshmamma) by virtue of the will no.244/1977 executed by her husband and since then the scheduled property is under the enjoyme....
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..... As per the assessee's own explanation the assessee received 7294 Sq.ft out of the total area of construction. While computing the capital gains, the assessee had not taken into account the cost of common area and the undivided land received along with the constructed carpet area. Hence, the same was proposed for taking into account for the computation of capital gains and a show-cause notice was issued to the assessee on 04.11.2010 calling for her objections for assessing the capital gains by taking into account the value of common area and the value of undivided land received along with the constructed area of 7294 s.ft. The case was posted for hearing on 16.11.2010. The assessee had filed her written submissions on 19.11.2010. Furth....
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.... Total constructed area : 35,340 sft. Value of land per sft : 2,42,31,300/35,340 = Rs. 686 Cost of construction per sft (As per Regn. Department's proceedings dt.28.9.2005) = Rs. 440 Composite rate per sft : Rs. 1,126 (686+440) Fair market value of transferred property (410 sq.yds) Rs.1126 x 8074 :Rs. 90,91,324 321/410 share in the sale consideration 90,91,324 x 321/410 :171,17,841 Less: Indexed value of the property 321x500x497/100 : 17,97,685 Capital gain Rs. 63,20,156 Add: Interest income under other sources : Rs. 72,773 Rs. 63,92,929 Income from other sources : Rs. 72,773 Long Term capital gains : Rs. 63,20,156 Tax thereon : Rs. 12,51,586 Add: S....
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....pinion that once the development agreement is over, 50% share of constructed value comes to the landlord i.e. the appellant, which is taxable during Asst. Year 2001-02, which is not before me. For this Asst. Year, the appellant already disclosed capital gains as per the registration documents according to her share of property received. Once the development agreement is decided and shared by the landlord and the builder i.e. developer, the issue of common area does not comes to the landlord again. The appellant has already given her land to the developer as per development agreement and disclosed her share value for this assessment year. Hence, there is no question of common area received back to the owner of land. Therefore, the considerat....
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....Vijayawada vide agreement dated 29.1.2001. As per the said agreement, she has to received 50% of the constructed area of the commercial complex to be constructed by the developer. As per the A.O., the developer of the property has obtained the approval no.1440/2003. Subsequent to the approval only, the construction was started and partly completed during the financial years 2004-05 and 2005-06. As per clause 8 of the agreement, it says that after getting the plan approval, we will fix our shares in the construction. We find that the assessee has also offered capital gains for the assessment year 2005-06 as well as 2006-07. It appears from the record that though the assessment for the A.Y. 2005-06 is not before us, the A.O. has completed ass....