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TMI Blog2019 (2) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... l loss in respect of the building being [ ₹ 50 lakhs minus ₹ 26,00,180/- = ₹ 23,99,820/- being the value of the building sold; Therefore ₹ 45,60,000 minus ₹ 23,99,820/- = ₹ 21,60,180/- being the capital loss in respect of the building.] The net result would short term capital gains in respect of land at ₹ 21,75,080/- and the short term capital loss in respect of the building at ₹ 21,60,180/-, thereby giving rise to short term capital gains of ₹ 14,900/-. However the original assessment order passed u/s.143(3) of the Act has already determined the short term capital gains of ₹ 3,20,000/-, which would have to be set off, thereby total short term capital loss of ₹ 3,05,100/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.2008, was at ₹ 26,00,180/- and at ₹ 23,99,820/- respectively. The assessment was originally completed u/s.143(3) of the Act on 30.12.2011 wherein the ld. Assessing Officer had obtained the valuation report u/s.55A in respect of cost of acquisition. Assistant Valuation Officer (AVO) vide his letter dated 27.12.2011 had valued the cost of acquisition at ₹ 46,64,700/-. The breakup of the same was the cost of construction of building at ₹ 42,39,600/- and cost of the land including stamp duty and registration fee at ₹ 4,25,100/-, totaling to ₹ 46,64,700/-. It was a submission that consequently in the course of original assessment, the ld. Assessing Officer had determined short term capital gains of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determined by the Assessing Officer at ₹ 45,60,000/- and as per the assessment order giving effect to direction of ld.CIT-1,Coimbatore u/s.263 of the Act, the land has been valued at ₹ 26,00,180/-. Thus, the total being ₹ 71,60,180/- whereas the sale consideration was only ₹ 50 lakhs. It was a submission that what has been sold by the assessee was a single land and building and by determining the short term capital gains in respect of the land and the building separately, the sale price of the property has been arrived at a figure higher than the actual sale price. It was a submission that the ld. Assessing Officer may be directed to make a consolidated calculation of the short term capital gains / short term capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e determined the short term capital gains in respect of land at ₹ 21,75,080/-. Thus, what we notice is that by assessment order passed u/s.143(3) of the Act dated 30.12.2011, the sale price in respect of the property has been accepted at ₹ 50 lakhs, the cost of construction has been accepted at ₹ 42,39,600/-, the cost of the land has been accepted at ₹ 4,25,100/- and as per the assessment order dated 09.03.2015 the sale value in respect of land has been determined at ₹ 26,00,180/-. Thus, as against a sale price accepted by the Revenue and disclosed by the assessee at ₹ 50 lakhs, the A.O has arrived at a short term capital gains of ₹ 21,75,080/- in respect of the land as per assessment order dated 09 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act and u/s.143(3) r.w.s.263 of the Act, we are of the view that such piecemeal adoption is not permissible. The assessee having sold a single land and building it is not open to the Revenue to break up the transaction and to determine the short term capital gains in respect of the transactions separately. If that is to be done, the ld. Assessing Officer having determined the short term capital gains in respect of land at ₹ 21,75,080/-, would also have to determine the short term capital gains /short term capital loss in respect of the building being [ ₹ 50 lakhs minus ₹ 26,00,180/- = ₹ 23,99,820/- being the value of the building sold; Therefore ₹ 45,60,000 minus ₹ 23,99,820/- = ₹ 21,60,180/- bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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