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TMI Blog2019 (3) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... ain [2017 (3) TMI 394 - MADRAS HIGH COURT] held that if under a development agreement the assessee receives several flats constructed on the same piece of land, the assessee would be eligible to avail deduction under section 54F of the Act. Thus, as per the ratio laid down in the aforesaid decision, the assessee would have been eligible to claim deduction under section 54F of the Act against the capital gain. Therefore, merely because the assessee agreed for the addition of capital gain, the provisions of section 271(1)(c) of the Act do not get attracted automatically. - decided in favour of assessee - ITA no.4987/Mum./2017 - - - Dated:- 28-2-2019 - Shri Saktijit Dey, Judicial Member And Shri G. Manjunatha, Accountant Member For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the assessee with regard to the balance amount of ₹ 1,75,24,500. Therefore, he issued notice under section 133(6) of the Act to the developer calling for information regarding the payments made. As observed by the Assessing Officer, vide letter dated 8th December 2014, the developer intimated that out of the total sale consideration of ₹ 3,85,24,500, an amount of ₹ 2,10,00,000 was paid directly to Smt. Gulshan Tashe, and the balance amount of ₹ 1,75,24,500, as per mutual agreement, was to be given in the form of flats admeasuring 21,400 sq.ft. Since, the Assessing Officer wanted to compute long term capital gain on the sale of land, he called upon the assessee to furnish a valuation report for value of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er (Appeals), however, she was unsuccessful. 3. The learned Authorised Representative submitted, the assessee did not receive any monitary consideration in lieu of the land sold and only received constructed area. Therefore, the assessee was under a bonafide belief that there is no capital gain arising on transfer of land to be offered to tax at her hand. He submitted, once the Assessing Officer brought to the notice of the assessee that capital gain has to be offered to tax even on receipt of constructed area in lieu of land, the assessee offered it for taxation. Thus, he submitted, under these circumstances assessee did not offer the capital gain to tax. That being the case, neither there is concealment of income nor furnishing of inac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the explanation of the assessee that in absence of any monetary consideration she was under a bonafide belief that no capital gain arises on sale of land, is acceptable and benefit of doubt can be given to the assessee. Even otherwise also, the Hon ble Madras High Court in Gumanmal Jain (supra) has held that if under a development agreement the assessee receives several flats constructed on the same piece of land, the assessee would be eligible to avail deduction under section 54F of the Act. Thus, as per the ratio laid down in the aforesaid decision, the assessee would have been eligible to claim deduction under section 54F of the Act against the capital gain. Therefore, merely because the assessee agreed for the addition of cap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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