Case Law Details
Nandkumar Gajanan Lad Vs ITO (ITAT Pune)
ITAT Pune discussed the cost of acquisition of two plots allotted against compulsory acquisition of land. Matter remanded in absence of availability of figures of fair market value of two plots which is cost of acquisition in second transaction.
Facts- The assessee along with certain other persons entered into an agreement with M/s. Shriram Builders & Developers for transfer of their rights in respect of Plot Nos.20 & 20A.
Plot Nos.20 & 20A were allotted to the assessee on 26.8.2011 in lieu of compulsory acquisition of land, whose possession was taken over by the Government in the year 1986. Initially, some compensation was awarded to the assessee. Later on, the said plots were allotted under 12.5% scheme of the Maharashtra Government of giving plot of area equivalent to 12.5% of the area of compulsorily acquired land. These plots were allotted to the assessee and others on 26-08-2011, which were sold by them on 12-09-2011 to M/s. Shriram Builders & Developers for a sum of Rs. 10.75 crore.
AO observed that the assessee paid a sum of Rs.6,36,300/- and Rs.2,21,950/- totaling to Rs.8,58,250/- to CIDCO under 12.5% scheme and held this amount to have constituted cost of acquisition of the property transferred for a sum of Rs. 10.75 crore. This resulted into total short term capital gain of Rs.10.66 crore with the assessee’s share at Rs.1,86,49,906/-. The addition so made was echoed by the ld. CIT(A) in the first appeal. Aggrieved thereby, the assessee has come up in appeal before the Tribunal.
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