Alagappa Muthiah HUF v. DCIT ( 2024) BCAJ – October -P. 54 ( Bang)( Trib)
S. 45 : Capital gains -Taxable in the year in which possession of constructed premises was received by the assessee and not in the earlier year when occupancy certificate was granted – Section 45(5A) which has been introduced w.e.f. 1-4- 2018 applies w.e.f. AY. 2018 -19 and not AY. 2017 -18 -Fair market value deemed to be full value of consideration in certain shares – Value of consideration- Full value of the consideration should be computed on the basis of guideline value of land or building that is transferred / received on development and not cost of construction reported by the developer as the said report was not supported by supporting documents . [ S. 45(5A) ,48, 50C, 50D ]
Tribunal held that capital gain is taxable in the year in which possession of constructed premises was received by the assessee and not in the earlier year when occupancy certificate was granted . Section 45(5A) which has been introduced w.e.f. 1-4- 2018 applies w.e.f. AY. 2018 -19 and not AY. 2017 -18 . Tribunal also held that full value of the consideration should be computed on the basis of guideline value of land or building that is transferred / received on development and not cost of construction reported by the developer. Order of CIT(A) based on the decision of Karnataka High Court in ACIT v. Shankar Vittal Motor Company Ltd ( ITA .No, 653 of 2016 dt 1- 12 -2021 ) . (AY. 2017 -18)( ITA No. 775 /Bang / 2024& 954 /Bang / 2024 dt. 12 -8 -2024 )
Leave a Reply