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TMI Blog2021 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessment Year (A.Y.) 2015-16 . Since the facts are identical, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under and the facts are extracted from I.T.A.No.84/Viz/2021 of Yandarapu Joseph Ratna Kumar. 2. Brief facts of the case are that the assessee filed the return of income declaring total income of Rs. 2,16,55,690/- and the return was taken up for limited scrutiny for verification of 'large long term capital gains'. During the course of assessment proceedings, the Assessing Officer (AO) called for the details and the assessee has furnished the details with regard to long term capital gains. After verification of details filed by the assessee, the assessment was complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out to 20.98 crores including the constructed space. However as on the date of agreement there is no constructed space, since, the same is yet to be commenced. As on the date of agreement the assessee transferred the land for development and entitled 50% of the constructed area and the 50% of undivided share of land therefore submitted that the assessee has rightly offered 50% of the land admeasuring 5324 sq.yds @ of Rs. 20,000/- per sq.yd the which worked out to Rs. 10,64,80,000/-. The assessee further submitted that the AO has accepted the computation of capital gains after due verification of details furnished by the assessee Therefore, there is no error in the assessment order passed by the AO which is prejudicial to the interest of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the revision is not permissible under 263 of the act. Therefore, argued that the order passed by the Ld.Pr.CIT is bad in law, hence, requested to quash the order u/s 263. 3.1. The Ld.AR further submitted that what was transferred by the land owners is 50% share of land in lieu of receipt of 50% of the constructed area. As on the date of transfer, there was no super built up area. Since the assessee retained, 50% of the land, either the value of 50% of the land or 50% of constructed area required to be taxed as capital gains, but not the land as well as the super built up area, since, the developer has not constructed the space nor parking space is available to the assessee. Therefore, Ld.AR argued that the assessee has rightly admitted 50% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty in question is a piece of land and that the assessee was the joint owner along with 4 others. The land was sold to one M/s Northstar Homes, a partnership firm for development of residential project. 6. The assessee was asked to furnish the details of ownership of the land and sales deed of the same with the firm. The AR furnished the required information from time to time and the same was duly verified. Regarding the Tax Credit mismatch, AR was asked to furnish the reconciliation statement of 26AS with ITR. The required document was furnished and the same was duly verified. After verification of the information / documents called for and discussion with the assessee, the assessment is completed by accepting income returned by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be given to the developer towards development charges and 50% of the plotted area has to be retained by the assessee. This fact was not disputed by the Ld.Pr.CIT. Though the assessee has transferred the undeveloped land and the developer has given physical possession of the developed plots as per the development agreement dated 28.06.2010, the fact remains that the assessee had retained 50% of the land and only 50% of the land was transferred to the developer, therefore, we are of the considered view that the capital gains has to be computed on 50% of the land transferred to the developer, but not on the entire developed land as contended by the Ld.Pr.CIT. partly." Similarly, This Tribunal in the case of Ganta Srinivasa Rao in I.T.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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