9911796707
TMI Blog2022 (4) TMI 1376X X X X Extracts X X X X X X X X Extracts X X X X ..... efly stated facts are that the assessee has claimed deduction u/s.54 of the Act for an amount of Rs. 6,97,60,030/-on long term capital gain of Rs. 6,89,39,241/-. The AO noted in his assessment order that as per information from AIR, the assessee has sold an immovable property (vacant land) at NSN Garden, 50 Feet Road, Voltas Colony, Nanganallur, Chennai - 600 061, admeasuring 16400 sq.ft., comprised in survey No.57/1(part), 59/1.59/2 and 58/3B (part) assigned Town Survey No.85/1, Block No.16 situated at Thalakancherry Village, Alandur Taluk, Kancheepuram District for a consideration of Rs. 7,38,00,000/- to M/s. Vetrivel Minerals on 08.08.2014 vide sale deed No.3228 of 2014 registered with SRO, Alandur. The assessee has invested the above sale consideration in the following properties:- 1. Purchase of land at Minjur 29/09/2014 89,21,060 2. Purchase of land at Pallavakkam 20/10/2014 75,22 ,000 3. Purchase of Property at Ullagaram 21/09/2014 1,01,17,470 4. Purchase of Residential House at Nanganallur 12/09/2015 4,41,00,000 The above sold land by the assessee was acquired through a release deed dated 19.02.2010 vide deed No.536/10 and the extent of land that was releas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 7,36,02,980/- and assessed the income accordingly. Aggrieved, assessee preferred appeal before CIT(A). 4. The CIT(A) after considering the submissions of the assessee and the issue dealt by the AO in the assessment order noted that the assessee has claimed deduction u/s.54F of the Act, in regard to only one asset. The CIT(A) also noted that the reinvestment in the new asset is well within the due date of filing of return u/s.139(4) of the Act, under which the assessee has extended time limit for filing of return of income. The CIT(A) noted that there was delay of only 9 days for registration of new asset due to certain compelling reasons because of defects in the Power of Attorney. Accordingly, he allowed the claim of assessee u/s.54F of the Act by observing in para 4.6 as under:- "4.6 After considering the appellant's argument with supporting documents, I am of the considered opinion that the AO has first of all misunderstood that the appellant had claimed of deduction u/s.54F for multiple assets whereas the appellant has claimed for only one residential property. Now, coming to the issue whether the appellant is entitled to claim deduction u/s.54F for the reinvestment in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of improvement. The Revenue also challenged the value adopted by CIT(A) on the basis of Registered Valuer's Report as on 01.04.1981 at Rs. 20,99,200/- per ground as against the cost of acquisition of land adopted by AO at Rs. 20,000/- per acre. The CIT(A) allowed the claimed of assessee vide para 4.10 and 4.11 as under:- 4.10 The detailed working of Long Term Capital Gain submitted by the appellant's AR before the CIT(A) is annexed to this appeal order. The working of Long Term Capital Gain is summarized as under:- Total Sale consideration of vacant land : Rs. 9,38,00,000 Less: Indexed cost of acquisition : Rs. 20,99,200 Less: Indexed cost of improvement : Rs. 1,88,67,255 Long Term Capital Gain : Rs. 7,28,33,545 Less: Deduction u/s 54F : Rs. 3,42,42,637 Taxable Long Term Capital Gain : Rs. 3,85,90,908 4.11 I have compared the Long Term Capital Gain worked out by the AO of Rs. 7,36,02,980 (without considering the appellant's claim of deduction u/s 54F) with the appellant's computation of Long Term Capital Gain of Rs. 7,28,33,545/ There is a difference of Rs. 7,69,435 only. I consider the appellant's computation of Long Term Capital Gain acceptable for the follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ming to the claim of indexed cost of acquisition, the assessee has made claim as regards to expenditure incurred towards refilling with soil and evacuation of earth work, costing Rs. 16.40 lakhs for the financial year 1994-95 and the indexed cost of which works out to Rs. 64,84,015/-. Further in financial year 2003-04, as per contractors bills, the assessee incurred expenditure towards fencing, gating, cement, concrete blocks, etc., to the extent of Rs. 19,00,000/- and the indexed cost of improvement works out to Rs. 42,02,160/-. Similarly, in financial year 2009-10, as per contractors bills, the assessee incurred expenditure towards clearing bushes, labour and material supplied which works out to Rs. 18,00,000/- and the indexed cost of improvement comes to Rs. 29,16,456/-, which the Revenue has not negated. Hence, we feel that these three items can be allowed. We direct the AO accordingly. 7. As regards to the claim of assessee that in financial year 1994- 95, the assessee has gifted certain portion of land through a release deed to Municipal Commissioner, same should be taken as cost of improvement. The cost of said portion of land works out to Rs. 13,31,580/- and assessee has c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration at Rs. 9.38 crores but has not stated how this Rs. 2 crores is sale consideration. Aggrieved, Revenue is in second appeal before Tribunal. 11. Before us, the ld. senior DR stated that the CIT(A) without any evidence considered the additional sale consideration of Rs. 2 crores offered by the assessee by way of rectification application filed by assessee on 27.01.2018 before the AO. The ld.Senior DR stated that the CIT(A) has not at all considered how this additional sale consideration was received by the assessee and how this was not considered at the time of registration of sale deed or even while filing return of income originally. Even the plea was not taken during the course of assessment proceedings as the assessment order was completed vide order dated 29.12.2017 u/s.143(3) of the Act. The assessee moved this rectification application u/s.154 of the Act on 27.01.2018 (this is visible from the stamp of the post office pasted on the application) and this application was rejected by the AO vide order dated 06.02.2018. Vide this application, the assessee has made this additional sale consideration disclosure vide para 4 of the application, which reads as under:- 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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