9911796707
TMI Blog2019 (2) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. It was submitted by ld.A.R that assessee is an individual, who had purchased 2,400 sq.ft of land on 04.05.2007. It was a submission that assessee had constructed a building incurring cost of Rs. 45,60,000/-. It was a submission that assessee had purchased the land at cost of Rs. 4,40,000/- and the assessee had sold the said land and building on 24.11.2008 for a consideration of Rs. 50 lakhs. For the purpose of stamp duty, the break-up value of Land and Building, as per sale deed dated 24.11.2008, was at Rs. 26,00,180/- and at Rs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the land, the ld. Assessing Officer has not given benefit to the assessee in respect of the short term capital gains originally assessed in respect of the building. It was a submission that the net result of the computation of the sale price by the ld. Assessing Officer in the two assessment orders was at sale price higher than the actual sale price in so far as, as per the original assessment order the sale price of the building had been determined by the Assessing Officer at Rs. 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 Rs. 26,00,180/-. Thus, the total being Rs. 71,60,180/- whereas the sale consideration was only Rs. 50 lakhs. It was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of the land at Rs. 4,40,000/- and consequently determined the short term capital gains at Rs. 3,20,400/-. In the course of the Assessment Order dated 09.03.2015 passed giving effect to the direction of ld.CIT-1 u/s.263 of the Act, the ld. Assessing Officer interestingly determined value of land alone by applying the guideline value and determined the same at Rs. 26,00,180/-. Consequently, he determined the short term capital gains in respect of land at Rs. 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 Rs. 50 lakhs, the cost of construction has been accepted at Rs. 42,39,600/-, the cost of the land has been accepte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely one year and six months. This being so, as it is noticed that sale price determined by the ld. Assessing Officer is far exceeding the actual sale price and as it is also noticed that the ld. Assessing Officer has adopted the piecemeal portion of AVO's report in the assessment order passed u/s.143(3) of the 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 Rs. 21,75,08 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
