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TMI Blog2017 (5) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... tax in AY 2008-09. This finding of fact was not contested by the Assessee or the Department during both Assessment proceedings as well as remand proceedings. We also found that the assessee has gone in for Dispute resolution scheme and hence the entire amount in accordance with the scheme was stated to have paid. As per our considered view since, the capital gains on sale of land is liable to be taxed in AY 2008-09 and tax has already been paid in accordance to the Income Declaration Scheme, the said long term capital gain is taxable in AY 2008-09 and not in the' current AY 2009-10, If the capital gain on Long term capital gain on sale of land is also taxed in 2009-10, then it shall result in double taxation of the said Capital gains. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computation of capital gain, the assessee has claimed compensatory expenses at ₹ 90,00,000/- along with cost of acquisition as on 01/04/1981. Therefore, the A.O. required the assessee to furnish detail of compensatory expenses of ₹ 90,00,000/- and also to justify the cost of acquisition as on 01/04/1981. Considering the reply of assessee, the A.O. disallowed compensatory expenses of ₹ 90,00,000/- on the ground that it pertained to the immediately preceding assessment year i.e. A.Y. 2008-09. She also declined to reduce the cost of acquisition as on 01/04/1981 of both the lands. 4. Before the AO, contention of learned AR was that capital gain arose in the earlier Assessment Year 2008-09 in so far as sale deed was executed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under appeal. The entire consideration for sale of the said agricultural land was also received on or before the date of the agreement as per para 5 / page no. 3 of the sale agreement and therefore the gains arising from sale of the said agricultural land does not arise in the year under appeal. The sale agreement dated 15/03/2008 was registered with the sub-registrar, Palghar on 02.06.2008 falling in the previous year relevant to the asst. yr. 2009-10. This is the factual position of the transaction. The registered sale agreement dt. 15.03.2008, the factum of receipt of entire sale consideration by 15.03.2008 and the handing over of possession of the agricultural land to the purchasers on 15.03.2008 squarely places the gains arising on sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Late Shri. Babulal Khimji Shah as provided by his legal heir in response to notice u/s 133(6). The necessary documents relating to the said payment in the form of high court consent terms were also examined and kept on record by the Id AO. However, the Id. A.O in computing the long term capital gains on sale of Dhansar land denied the deduction of ₹ 90,00,000/- paid to Shri. Babulal Khimji Shah for the only reason that the said payment was made in the earlier year towards cost of improvement of the capital asset and could not be allowed in the year under appeal while working of the capital gains. The reason for denial of the deduction as given by the Id AO at para 8/pg no. 3 of the asst. order was that the assessee followed cash sys ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,00,000/- has also been assessed in AY 2008-09. It is the case of the department that sale of land should be accessed to tax in AY 2008-09. This finding of fact was not contested by the Assessee or the Department during both Assessment proceedings as well as remand proceedings. We also found that the assessee has gone in for Dispute resolution scheme and hence the entire amount in accordance with the scheme was stated to have paid. 12. As per our considered view since, the capital gains on sale of land is liable to be taxed in AY 2008-09 and tax has already been paid in accordance to the Income Declaration Scheme, the said long term capital gain is taxable in AY 2008-09 and not in the' current AY 2009-10, If the capital gain on Long ..... X X X X Extracts X X X X X X X X Extracts X X X X
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