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TMI Blog2017 (6) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... ion shall be applied as specified under section 50C i.e. ₹ 35,76,180/-. In view of the above, the AO is directed to compute the capital gains after taking the sale consideration at ₹ 35,76,180.00 as per the provisions of section 50C of the Act. But for the purpose of deduction u/s. 54EC, the sale value would be taken at ₹ 18.99 lacs which is the actual sale consideration. Calculation of cost of acquisition - Held that:- Authorities Below have not considered the valuation report given by the registered valuer though the assessee’s claim to have filed the same before the Authorities Below. Similarly, we also find that assessee has declared the valuation of the impugned property @ ₹ 2030.00 per sq. ft. in the immediate preceding year as evident from the supporting documents which are placed on record. But on perusal of the same, we find that no scrutiny assessment was carried out by the Department in the earlier assessment year. Therefore in our considered view, the matter has not been adjudicated on the basis of merit. We also find that the valuation report showing the cost of acquisition of the assessee as submitted by the ld. AR was never verified by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the capital gains. The Assessing Officer in his assessment order has invoked the provision of Sec. 50C of the Act for the computation of Long Term Capital Gains on account of sale of impugned property. The assessee did not declare sale consideration as per the provision of Sec. 50C of the Act. Therefore, the AO disallowed the claim of assessee and determined the capital gain as per the provisions of section 50C of the Act. The AO further while determining the deduction u/s 54EC of the Act claimed by assessee has taken the value of the consideration as per the provision of Sec. 50C of the Act. Although the assessee claimed the deduction u/s. 54EC of the Act on the basis of actual consideration received by him from the sale of property. However, the AO disregarded the contention of the assessee and worked out the deduction u/s 54EC of the Act on the basis of consideration declared for the purpose of stamp valuation. 7. Aggrieved, assessee preferred an appeal before Ld. CIT(A). The assessee before Ld. CIT(A) submitted that the total consideration for all the properties are arising out for ₹ 18,99,500/- and out of which a sum of ₹ 18 lakh was invested in security as s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,64,640/- Rs.35,76,180/- The decision of the Hon'ble ITAT Mumbai in the case of Mrs. Nila Shah Vs. CIT (supra) is squarely applicable to the facts of the present case. The Hon'ble ITAT has held that for working of thee Long Term Capital Gain the sale consideration would be as per the value determined u/s. 50C. In view of the above, the AO is directed to compute the Long Term Capital Gain u/s. 50C after adopting the Fair Market Value as determined by the Valuation Office of the Income-tax Department and allow the claim of deduction u/s. 54EC on actual, sale value. These grounds of appeal are partly allowed. Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us on the following ground:- 3. For that on the facts and circumstances of the case the capital gain should have been directed to be adopted on the basis of the actual consideration received by the appellant. 8. Ld. AR for the assessee reiterated the arguments that were made before Ld. CIT(A) whereas Ld. DR for the Revenue vehemently relied on the order of Authorities Below. 9. We have h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time of hearing has also relied on the order of Nila V Shah (supra) and Ld. CIT(A) has also adopted the basis for working out the capital gain in the aforesaid facts and circumstances. In view of the above, we find no reason to interfere in the order of Ld. CIT(A). We uphold the same. This ground of assessee is dismissed. 10. Next issue raised by assessee in ground No.4 is that Ld. CIT(A) erred in taking the cost of acquisition at ₹ 20,000/- 11. The assessee while working out the capital gains on the transfer of impugned property has taken the value of the property as on 01.04.1981 at ₹ 1,02,302/- and same cost of the property was indexed on the basis of gold rates of 24 carat gold which was worked out at ₹ 4,91,050/-. Thus, assessee worked out the cost of acquisition of the impugned property transfered at ₹ 4,91,050/-. However, the AO during the course of assessment proceedings observed that the impugned property was partitioned dated 15.07.1985 and thus he became the owner of the impugned property on that date. The AO also observed that assessee has given the value of the property as per partition deed at ₹ 20,000/- in respect of four impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue heavily relied on the order of Authorities Below. 14. We have heard the rival contentions of the parties and perused the materials available on record as well as order of Authorities Below. The limited issue in this ground of appeal is confined to the following points:- (i) Whether cost of acquisition in respect of the impugned property sold should be taken at ₹ 20,000/- only as recorded in the partition deed. OR (ii) Whether the cost of acquisition will be taken as the value determined by the registered valuer as on 01.04.1981 in respect of the property sold in the year under consideration which has not been considered by the Authorities Below. OR (ii) Whether the cost of acquisition of ₹ 2030/- only per sq. ft. should be adopted as disclosed by the assessee in the immediate preceding year which was accepted by the Revenue In this connection, we find that Authorities Below have not considered the valuation report given by the registered valuer though the assessee s claim to have filed the same before the Authorities Below. Similarly, we also find that assessee has declared the valuation of the impugned property @ ₹ 2030.00 per sq. ft. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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