K.S.JHAVERI,J. - (1.) By way of this appeal, the appellant has assailed the judgment and order of the tribunal whereby tribunal has dismissed the appeal of the department and cross objection of the assessee was partly allowed by modifying the order of AO as well as CIT(A).
(2.) Counsel for the appellant has framed following substantial questions of law:- i) Whether on the facts and in law the ITAT was justified in law in deleting the addition made on account of Long Term Capital Gain without appreciating the provision of section 45 and 45(2) of the Act and the computation made under section 48 of the Act. (ii) Whether in the facts and circumstances of the case, the Tribunal was justified in considering the cost of land as on 01-04-1981 at Rs. 11877300/- without appreciating the fact that the value of the said property was only of Rs. 11648/- as on 01.04.1981 as per books of account of partnership firm and after taken over by the company, the land had been valued at Rs. 5657400/- only 1992-93. (iii) Whether in the facts and circumstances of the case, the Tribunal was justified that the fair market value of the land as on 01.04.1981 can be more at Rs. 11877300/- when the assessee itself has determined the land's market value at Rs. 5657400/- in F.Y. 1992-93 (duly reflected in balance sheet for A.Y. 1993-94 to A.Y. 2004- 05).
(3.) The facts of the case are that the assessment was originally completed under section 143(3) on 23.12.2008. Subsequently, it comes to the notice of the Assessing officer that the income on account of long term capital gains amounting to Rs. 5,69,55,130/- has escaped taxation and notice under section 148 was issued. After disposing off the objection raised by the assessee, assessment proceedings were completed under section 147 wherein AO brought to tax long term capital gains of Rs. 7,82,45,942/-. The Assessing Officer considered sales consideration under section 50C as determined by the DVO and Sub-Registrar at Rs. 7,83,10,852/-. And regarding cost of acquisition, the Assessing Officer noted that the original cost of land in the books of erstwhile partnership firm, Assam Roller Flour Mills was shown at Rs. 11,648/- and accordingly, he computed the indexed cost of acquisition at Rs. 55,910/- and after giving allowance for the same, brought to tax long term capital gains of Rs 7,82,45,942/-in the hands of the assessee.;