9911796707
TMI Blog2016 (8) TMI 1560X X X X Extracts X X X X X X X X Extracts X X X X ..... A the capital gain has to be computed only on the guidance value of the land. Even otherwise, if any capital gains to be accrued in future in favour of assessee after receiving the possession of the property. Certainly that would also be subject to capital gains. Therefore, in our final conclusion valuation of the capital gain should be appropriate to adopt the FMV/asset as deemed consideration, but not cost of the construction. - Decided against revenue. - I.T. A. No.1428/Bang/2014 - - - Dated:- 19-8-2016 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER Appellant By : Shri Sanjay Kumar, CIT-III (D.R) Respondent By : Smt. Sheetal Borkar, Advocate. ORDER Per Shri Vijay Pal Rao, J.M. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the impugned order has held that the capital gains in respect of the land has arisen on the date of JDA in view of the judgment of Hon'ble jurisdictional High Court in the case of CIT Vs. Dr.T.K. Dayalu 292 Taxman 531 wherein the Hon'ble High Court has held that the transfer of the land under JDA constitutes transfer as per the provisions of Section 2(47)(v) r.ws. 53A of the Transfer of Property Act. However, the CIT (Appeals) has further held that the deemed consideration of the land should be adopted as fair market value of the built up area to be received by the assessee as on the date of JDA and based on the Govt. records in para 6.9 as under : 6.9 I find that the admission of the appellant is also in line with the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ang/2015. At the outset, we note that an identical issue has been considered and decided by the co-ordinate bench of this Tribunal in the case of Shankar Vittal Motor Co. Ltd. (supra) in para 7 as under : 7. We have heard both parties and have considered the relevant material available on record. The learned DR argued that the portion of the constructed apartment that are to be assigned to the assessee has already been decided and crystallized and considering the scenario, it is only logical that the value of these apartment be considered as sale consideration. Further it was argued by the learned DR that assessee should only treat the cost of construction as sale consideration and not the market value of the asset because, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersy is not with regard to the assessment year, but it is of the valuation of property whether market value as on the date of JDA has to be considered or Construction cost has to be considered. The judgment passed by the jurisdictional High Court in the case of CIT Vs Dr. T.K.Dayalu 292 Taxman.com531 is relevant for deciding the present controversy. We are of the view, because at the time of signing JDA the capital gain has to be computed only on the guidance value of the land. Even otherwise, if any capital gains to be accrued in future in favour of assessee after receiving the possession of the property. Certainly that would also be subject to capital gains. Therefore, in our final conclusion valuation of the capital gain should be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
