MR. DHARAM PAL SINGH,NOIDA vs. ITO, NOIDA

The present appeal has been filed by the assessee assailing the correctness of the order dated 15.06.2016 of CIT(A)-1, Noida pertaining to 2008-08 AY on the following grounds:-

2. That his action in holding that the share of the assessee in total sales considerations of the lease rights allotted in the land to be determined on the basis of provisions of the Section 50C of the IT. Act, 1961, is wrong and not as per the provisions of the Income Tax Act, 1961 and thus the additions need to be deleted. 3. That his action in not adjudicating, on the issue of Cost of Acquisition of the land sold by the Assessee, in the appeals filed by the Assessee is wrong and thus considering the facts of the case, it needs to be decided and relief granted to the Assessee. 4. Appellant craves leave to add, alter, delete or modify and/or withdraw grounds of appeal up to the date of hearing of the appeal.”

Page 2 of 3 capital gain on the aforesaid properties. The explanation offered in regard to the cost of acquisition was not accepted and addition of Rs.12,77,416/- as Short-Term Capital Gain was made in the hands of the assessee. The issue was challenged in appeal before the CIT(A) where the assessee partially succeeded as the CIT(A) held that the share of the assessee is 1/40 of the gross amount. However, the provisions of section 50C were held to be applicable and on the cost of acquisition challenged by way of Ground No.5 before the Commissioner(Appeals) the issue remained undecided. In the light of the afore-mentioned facts, considering the submissions of the Ld.AR and the Ld.Sr.DR, it is deemed appropriate to set aside the impugned order with the direction to the CIT(A) to adjudicate the issue of cost of acquisition raised by the assessee before the said authority on the basis of facts and evidence for which if need be the assessee be permitted to file fresh evidences. The view taken in regard to the same property in the case of the co-owners was also not known to the parties thus the parties requested that even though the issue raised questioning the applicability of section 50C has been decided by the CIT(A) in a cursory manner however facts in reference thereto qua the co-owners have not been referred to or discussed. This issue too it was requested may also be set aside back to the CIT(A) with the direction to decide the same by way of a speaking order. Considering the finding, it is seen that the submissions of the parties are found to be correct. Accordingly, the issue are set aside back to the file of the CIT(A) to decide then a fresh in accordance with law after giving the assessee a reasonable opportunity of being heard.