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TMI Blog2013 (12) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... ce under section 143(2) was issued to the assessee. The assessee had earned income from interest and capital gains on sale of property during the relevant assessment year. The assessee had one house at 47, Main Road, Royapuram, Madras. The said house was purchased by the assessee way back in the year 1967. On May 29, 2004 the assessee entered into an agreement with M/s. Doshi Housing Pvt. Ltd. for development of the property and to convert the house into apartments. As per the agreement between the parties, the assessee was entitled to get 42.5 per cent. of built-up area. The assessee computed the capital gain as "nil" after claiming exemption under sections 54 and 54E of the Act. The assessee had claimed exemption on the basis of investmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideration received to the tune of Rs. 2,85,54,593 till December 25, 2006 the long-term and short-term capital gain on sale of 57.5 per cent. share of the total area of land measuring 12 grounds. The Assessing Officer made addition to the tune of Rs. 1,18,21,793 as short-term capital gain in the income returned by the assessee. As regards long-term capital gain arising out of sale of land, the Assessing Officer initiated proceedings under section 147 and accordingly notice under section 148 of the Act for the assessment year 2005-06 was issued to the assessee. 3. Aggrieved against the assessment order dated December 3, 2009, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 31, 2006 and Rs. 1,15,00,000 in capital gain account scheme. The said amount cannot be set off against the long-term capital gain liability for the assessment year 2005-06 and they are made beyond the time limit as prescribed under sections 54 and 54E respectively. The Departmental representative strongly supported the order of the Assessing Officer. The Departmental representative further contended that separate proceedings under section 147 have been initiated against the assessee and notice under section 148 was issued to the assessee for the assessment year 2005-06 as the long-term capital gain arising out of sale of land has escaped assessment in the said assessment year. 5. On the other hand, Shri G. Seetharaman appearing on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rea is calculated as follows : Sale consideration of 5 grounds i.e., 12,000 sq. ft at Rs. 1000 1,20,00,000 Less : Indexed cost of land of 5 grounds 5,19,000 Long-term capital gain on sale of undivided share of land 1,41,81,000 The total long-term capital gain as calculated above is Rs. 1,41,33,400 + Rs. 1,14,81,000) = Rs. 2,56,14,400. The authorised representative submitted that the assessee had already invested a sum of Rs. 1,60,00,000 in the capital gain bonds and Rs. 1,15,00,000 in capital gain scheme. Thus, the total amount invested in bonds and capital gain scheme are Rs. 2,75,00,000 which is much more than the capital gain earned by the assessee. Therefore, assessable capital gain is nil. 6. As regards reopening of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... built-up area was Rs. 1,14,81,000. The assessee has invested a sum of Rs.1,60,00,000 in capital gains bonds and Rs. 1,15,00,000 in capital gains scheme totalling Rs. 2,75,00,000 and has claimed deduction under sections 54 and 54F of the Act. In view of the abovestated facts, we are in consonance with the findings of the Commissioner of Income-tax (Appeals) and dismiss the appeal of the Revenue.
However, it is made clear that the findings of this order shall not prejudice the proceedings initiated against the assessee under section 147 for the assessment year 2005-06.
8. In the result, the appeal of the Revenue is dismissed.
The order pronounced in the open court on Thursday, the 4th day of April, 2013 at Chennai. X X X X Extracts X X X X X X X X Extracts X X X X
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