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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 ..... ing in the share of the assessee - the assessee has conceded the short-term capital gain arising from sale of built-up area - As per the computation, the assessee has earned the long-term capital gain from the sale of land to the developer as Rs. 1,41,33,400 and the long-term capital gain arising out of sale of share of undivided land at the time of sale of 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 – Decided against Revenue. - ITA No.669 /Mds/2012 - - - Dated:- 4-4-2013 - Dr. O.K. NARAYANAN AND SHRI VIKAS AWASTHY, JJ. For the Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee entered into a joint development agreement with M/s. Doshi Housing Ltd. to construct a residential complex on the land of the assessee. M/s. Doshi Housing Ltd. paid a sum of Rs.25,00,000 as advance which was to be adjusted against the sale realisation of residential flats at Rs. 2000 per sq. ft. at the end of the completion of the construction. The project was completed in the year 2008 and the final deed of discharge was executed on June 6, 2008. According to the agreement super built-up area was 45,695 sq. ft. The assessee's share of 42.5 per cent. was 19,420 sq. ft super built up area and 1030 sq. ft. of open terrace area. The assessee had received a sum of Rs. 2,85,54,593 on December 25, 2006. The Assessing Officer held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Rs. 18,19,225. As regards the income arising from longterm capital gain which comes to Rs. 2,56,14,400, the assessee had already invested a sum of Rs. 2,75,00,000 in capital gain bonds and capital gain scheme. Thus, the assessee is entitled to the benefit of exemption provided under sections 54 and 54F of the Act. The Commissioner of Income-tax (Appeals) partly allowed the appeal of the assessee. Aggrieved against the order of the Commissioner of Income-tax (Appeals) dated December 26, 2011 the Revenue has come in appeal. 4. Shri T. N. Betgeri appearing on behalf of the Revenue submitted that the Commissioner of Income-tax (Appeals) has erred in holding that there is no taxable long-term capital gain in the hands of the assessee. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in the share of the assessee on account of transfer of land in question to M/s. Dhoshi Housing Limited. As regards long-term capital gain, the authorised representative submitted that the transaction has been split into two parts : (i) Out of the total land of 12 grounds approximately 7 grounds 57.5 per cent. share was transferred to the developer as per joint venture agreement entered into between the parties on May 26, 2004. (ii) The guideline value as per the Assessing Officer was Rs. 20,000 per ground and after taking into consideration the indexed cost of inflation, the cost of land transferred to developers comes to Rs. 7,26,600. The estimated cost of construction of 14,860 sq. ft which comes to the share of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties and have perused the orders of the authorities below. It is an admitted fact that the assessee has entered into an agreement for development of the land in question in the financial year 2004-05 relevant to the assessment year 2005-06. The income arising from sale of land to the extent of 57.5 per cent. share arose to the assessee in the financial year in which the said agreement was executed. This fact has been admitted by the assessee. The authorised representative for the assessee has fairly conceded that the assessee is not disputing initiation of proceedings under section 147 of the Act. The dispute, if any, can be only on the quantum of assessment. The authorised representative has given detailed computation of long-term and s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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