Per Jugal Kishore, Accountant Member. - The appeal filed by the assessee is directed against the order passed by the ld. CIT(A)-VII, Kolkata dated 23-8-2006 for the assessment year 2003-04 on the following grounds :—

"(1) That the ld. CIT(A)-VII, Kolkata erred in arbitrarily confirming the inclusion and assessment of Rs. 14,49,14,951, as alleged short-term capital gains arising to the appellant company on sale of 4th, 5th, 6th, and 7th floors of Wing ‘A’ of the premises, being land and building situate at B-148, Barakhamba Road, New Delhi, in terms of four separate and distinct agreements for sale, all executed on 22-10-2001 in favour of M/s. Prity Portfolio Pvt. Ltd., Nahid Finlease Pvt. Ltd., Bist Hotels Pvt. Ltd. and Sagari Secfin Pvt. Ltd. respectively.

(2) That the ld. CIT(A)-VII, Kolkata erred in arbitrarily alleging and/or holding that it was impossible to bifurcate the aggregate sale consideration of Rs. 16,99,85,636 received by the appellant-company in respect of the aggregate area of 1656.79 square metre of office space along with proportionate undivided indivisible share in the land underneath, as also the proportionate share in all common areas and facilities etc., sold by the appellant-company to the said four buyer companies named in Ground No. 1 hereinabove.

(3) That the ld. CIT(A)-VII, Kolkata erred in arbitrarily alleging and/ or holding that by virtue of the Development Agreement dated 24-2-1988 entered into between the appellant-company, the own- ers, and M/s. Ansal Properties & Industries Pvt. Ltd., the Developers, the appellant-company’s rights in the whole of the land measuring about 1.805 acres equivalent to 7307 square metres or 78,645 sq. feet, and in the two Wings ‘A’ and ‘B’ situate at premises No. B-148, Barakhamba Road, New Delhi got extinguished, and that even the so called purchase consideration, being the development costs of 43.2 per cent of the newly built aggregate office area, being the owner’s share/allocation forming part of Wing ‘A ‘ therein, was impossible to bifurcate.

(4) That the ld. CIT(A)-VII, Kolkata erred in arbitrarily alleging and/or holding that in absence of any separate agreement for sale of land and buildings/structures thereon, the bifurcation of aggregate sale consideration of Rs. 16,99,85,636 receivable by the appellant-company from the said four buyers into Rs. 12,31,42,645 for land and Rs. 4,68,42,991 for buildings, as carried out by the appellant-company for the purposes of computing its tax liability, for the year under appeal, was wholly hypothetical, imaginary and artificial.

(5) That the ld. CIT(A)-VII, Kolkata should have held that the aggregate gains in the sum of Rs. 6,55,59,433 arising on sale of 1656.79 sq. mtrs. of the aforesaid office premises, were assessable as long-term capital gains, as the same were attributable to the proportionate share of land underneath the superstructures in terms of the said four agreements for sale, and the balance sum of Rs. 2,49,38,557 only was chargeable to tax in the hands of the appellant-company as short-term capital gains, in terms of the computation of capital gains filed by it along with its return of total income for the year under appeal.

(6) That the ld. CIT(A)-VII, Kolkata, erred in confirming the levy of interest under section 234B in the sum of Rs. 6,46,584 and under section 234D in the sum of Rs. 1,97,933 for the year under appeal, in terms of the order dated 25-1-2006 passed by the ld. ACIT, Circle-7, Kolkata under section 154/143(3) of the said Act.

(7) That the impugned appellate order dated 23-8-2006 as well as the impugned assessment order dated 21-11-2005 passed by the ld. CIT(A)-VII, Kolkata and the ld. ACIT, Circle-7, Kolkata respectively, are wholly against the facts and evidences on record, illegal, invalid, unreasonable and/or otherwise perverse in respect of the matters covered by Ground Nos. 1 to 6 hereinabove."

2. The main issue involved in this appeal filed by the assessee-company relates to the questi