2025 (7) TMI 18

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.... notice was duly served through the Ld. DR, therefore, this appeal is being decided on the basis of material available on record and after hearing the Ld. DR. 3. Facts of the case, in brief, are that the assessee is an individual and has not filed his return of income for the impugned assessment year. Since the assessee along with others has entered into a tripartite agreement with Shri Jaykishan M. Nogja for transfer of his rights in respect of land situated at Plot NO.06A, Sector-10E, Village-Kalamboli, which was transferred vide agreement dated 20.11.2009 registered with Sub-Registrar, Panvel and the consideration as per the provisions of section 50C of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') was Rs. 2,23,09,00....

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....sessee has received the consideration as a result of compulsory acquisition of agricultural land and hence the same would not attract capital gains. The mode of consideration is not important as this may be in cash or in kind. * But the second transaction clearly mounts to 'transfer' as defined under section 2(47) of the Income-tax Act, 1961. Therefore the provisions of section 45(1) of the Income-tax Act, 1961 attracted in this case accordingly. * Now the only question remains is to what should be the cost of acquisition of land awarded by CIDCO under 12.5% scheme. In this regard, it can clearly be concluded that as on date of transfer, the market value represents the value on which the stamp duty is payable. It d....

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....t of the above transfer. 5.2 However, after considering the fact that the assessee has 50% share in the said property as evident from the agreement, the resultant short term capital gains in the hands of the assessee comes to Rs. 1,11,47,004/-. Accordingly, short term capital gain of Rs. 1,11,47,004/- is hereby added to the total income of the assessee." 4. In appeal, the Ld. CIT(A) / NFAC directed the Assessing Officer to re-compute the capital gain by deducting the fair market value from the sale consideration by observing as under: 4.5. I have considered the findings of the AO, submissions/grounds of the appellant and the facts of the case as placed before me. The submissions filed by the appellant clearly points out....

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....uch order of the Ld. CIT(A) / NFAC, the Revenue is in appeal before the Tribunal by raising the following grounds: 1. On the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in modifying the addition made by the AO by directing the AO to ascertain the Fair Market Value of the said land at the time of acquisition, when there is no such provision in Section 48 of the I.T.Act. 2. On the facts and in circumstances of the case, the case falls under the exceptions clause as per Para 3.1.(f) of CBDT's Circular No.5/2024 wherein the tax effect is not quantifiable as on date. 3. The order of the Ld.CIT(A) may be vacated and that of the Assessing Officer may be restored. 4. The appell....