TaxTMI 
TaxTMI 
2022 (8) TMI 1185
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.... from Kulgaon-Badlapur Municipal Council (KBMC) as compensation on compulsory acquisition of assessee's agricultural land has been challenged. And that the lower authorities have rejected the contention that the said short term capital gain was exempt under section 10(37) of the Act. Assessee also raised an additional ground in ITA No.7985/Mum/2019 on the ground that the assessment order under section 143(3) r.w.s. 147 of the I.T. Act dated 20/12/2018 was passed in the name of the deceased person. ITA 1168/Mum/2018 - Shri Shankar Rama Ghorpade 4. The brief facts are that the assessee filed his returns of income for A.Ys. 2013-14 and 2014-15 declaring total income at Nil. The assessee, an individual engaged in agricultural activities having source of income from agricultural land only. The assessee's case was selected for scrutiny and order under section 143(3) r.w.s. 147 of the I.T. Act was passed. At the time of assessment proceedings, it is observed that the assessee had sold TDR of 10,000 sq.mtr against surrender of land at Kulgaon - Badlapur Municipal Corporation (KBMC) dated 09/08/2011 and 13/09/2011. The assessee owned 10,000 sq.mtrs of TDRs by virtue of this transfer. ....
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....stated that as it was compulsory acquisition by KBMC, short term capital gain would not attract in the case of the assessee. The Ld.AR also stated that the assessee had not incurred any cost to acquire the TDR and that capital gain was not chargeable to tax and prayed for deletion of the addition made on account of Short Term Capital Gain. 8. The Ld.DR relied on the orders of the lower authorities. 9. Having heard both the learned representatives and perused the materials on record, it is observed that on the legal ground raised by the assessee that assessment order was passed on the deceased person, we find that the assessee has not produced any evidence to prove that the legal heirs have intimated the Assessing Officer about the demise of the assessee except for an affidavit dated 20th December, 2019 which authorises one of the legal heirs of the assessee, Shri Dnyaneshwar Shankar Ghorpade to represent the appeals before the ITAT on behalf of the other legal heirs of the assessee. Apart from this, the assessee has failed to substantiate the fact that inspite of intimation, the Assessing Officer has erred in passing the assessment order on the deceased person. In this case, ....
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....sideration of the surrender of the said land to KBMC instead of fair market value of the TDR while computing capital gain on sale of TDR. The assessee prays that the AO be directed to determine the cost of acquisition of TDR and to adopt the same as cost of acquisition thereby and to recompute the capital gain. 12. We hereby direct the Assessing Officer to calculate the cost of acquisition for the purpose of deduction by following the decision of Mumbai Bench "A" in the case of Atul G Puranik vs ITO, 12(1(1) (2011) 11 taxmann.com 92 (Mumbai). Additional ground No.2 is partly allowed. ITA No.1168/Mum/2018 13. The grounds of appeal in this appeal are as follows:- Being aggrieved by the order dated 27.11.2017 passed by the learned Commissioner of Income Tax (Appeals)-3, Thane ["Ld. CIT(A)"] u/s 250 of the Income-tax Act, 1961 ("Act"), your appellant prefers this appeal, among others, on the following grounds of appeal, each of which is without prejudice to, and independent of, the other: I. Disallowance of exemption claimed u/s.10(37) of the Act: (a) On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) erred in confirming th....
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....nd in law, the Ld. CIT(A) also erred in holding that the subject land was not agricultural land. (c) On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) also erred in holding that the transfer of the subject land was not by way of 'compulsory acquisition'. . . Your appellant, therefore, prays that the exemption u/s. 10(37) of the Act be allowed for the aforesaid capital gains. n. Assessment of Short Term Capital Gains on sale of TDR; (a) On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) erred in confirming assessment of short term capital gains of Rs.65,55,427/-] on sale of Transferable Development Rights (TDR'). (b) The Ld. CIT(A) failed to appreciate, and ought to have, held that the appellant did not incur any cost to acquire these TDR, and therefore, the resultant capital gain was not chargeable to tax. Your appellant, therefore, prays that the addition of Rs.65,55,427/- made |on account of the short-term capital gains be deleted." Whereas the grounds of appeal in ITA No.6948/Mum/2019 are as under:- "Being aggrieved by the order dated 22.08.2019pas....