TaxTMI 
TaxTMI 
2025 (5) TMI 1950
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....t the action of the Ld.CIT(A) confirming the action of the AO in computing the Long Term Capital Gains (LTCGs) of immovable property wherein the assessee has sold its undivided share (UDS) of 856 sq. ft. in Mylapore, Chennai, by virtue of it, assessee received Rs. 1,05,00,000/- (AY 2010-11) out of the total land developed being 34,253 sq.ft. i.e. 2.49% of the total land which has been conveyed/transferred to the developer by Sale Agreement dated 06.11.2009 (AY 2010-11) and possession of the property passed on to the builder by registration of power of attorney in favour of T.V.Satia Narayana/Shri P.Kumar of M/s. Appaswamy Real Estates on 30.04.2010 i.e. AY 2011-12; and in the light of the aforesaid events, according to the assessee-HUF, the....
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....nd dated 30.04.2010. According to the assessee, the immovable property in question has been transferred to developer u/s. 2(47)(v) of the Act r.w.s.53A of the TP Act and therefore, the capital gains, if any, arose in AY 2011-12 and asserted that no capital gains arose in AY 2016-17. But the AO didn't agree with the contention of the assessee and was of the view that the assessee along with four (4) other sellers had sold six (6) immovable properties for a total consideration of Rs. 7,25,61,432/- in AY 2016-17 and taking note that the market value of the properties as per section 50C of the Act was Rs. 7,97,43,250/-, he computed the total consideration in the hands of the assessee as per sec.50C of the Act as Rs. 1,59,48,650/- [1/5th of the ....
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....ed as Document Number Extent of Land in square feet S.Senthilkumar ALGPS6106E 264/2010 31,517 Deepak V Mirpuri AABPD8477H 2531/2015 870 Myself-Parandhaman AAEHP9160N 361/2010 856 Vicky N Melwani and Anup N Melwani AABPV0291P AACPM7921J 348/2010 1,010 TOTAL SFT 34,253 6. As noted (supra), the builder, Shri Ravi Appasamy had aggregated lands from four (4) vendors (supra) and developed the property which was approximately 14 grounds i.e., 34,253 sq. ft.; and the share of the assessee's share of land is 856 sq ft and is a minor portion of the total land that the builder has aggregated. After aggregating the land, the builder has developed the property and named it "Luz Amore" which consisted of 32 premium 3....
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....ith building was purchased by the assessee on 16.09.2005 and sold the same by Agreement of Sale dated 06.11.2009 and allowed the builder [Mr.T.V.Sathia Narayana/ Mr.P.Kumar, of Appaswamy Real estate] to take possession of the ibid immovable property shows that transfer/part performance of the contract as envisaged in section 53A of the TP Act r.w.s.2(47)(v) of the Act took place in the eyes of law. Thus, it is noted that incidence of LTCG arose in AY 2011-12 as per section 45 of the Act; and the consideration received from transfer, the assessee is noted to have invested in another property and the balance amount, assessee has offered for taxation as the capital gains. Even though, these relevant facts were brought to the notice of the AO/L....
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....s is noted to have been added in their hands. In this regard, the assessee has kept a copy of the assessment order of Mr.Anup N. Melwani dated 30.03.2022 passed u/s. 147/144 of the Act for AY 2016-17, a perusal of it, reveals that the AO notes that Shri Anup along with his brother [Mr.Vicky N. Melwani] had sold 1010 sq.ft. of land had also executed similar power of attorney in 2010 in the name of Srinivas Real Estates/Ravi Appaswamy for a total consideration of Rs. 1.40 Crs. [i.e. Rs 70 lakhs each in both brothers hand]. And as done in the present-assessee's case, the power of attorney was also given to Mr.T.V.Sathia Narayana/Mr.P.Kumar, along with possession of the property. And the AO of Mr.Anup N. Melwani didn't make any addition of capi....