Adil Noshirvan Shethna Vs ITO (ITAT Surat)
Income Tax Appellate Tribunal, Surat Bench decided an appeal arising from an order of the Commissioner of Income Tax (Appeals), Surat for Assessment Year 2005–06 concerning computation of long-term capital gains on sale of immovable property. The assessee sold a property in which he held a one-fourth share for ₹22,79,776, while the stamp valuation authority valued the property at ₹68,38,000. During assessment, the Assessing Officer computed long-term capital gains by adopting the indexed cost of acquisition from the year 1996–97 instead of 1985–86, resulting in an addition of ₹2,16,465. The first appellate authority confirmed this approach. Before the Tribunal, it was contended that indexation should be applied from the year in which the property was first held, namely 1985–86. The Tribunal noted that the assessee had acquired the property as one of the heirs through a will after the death of the earlier owner. It held that indexation must be allowed from the year the previous owner first held the property. Accordingly, the Tribunal accepted the assessee’s claim, held the earlier computation to be incorrect, and allowed the appeal.
FULL TEXT OF THE ORDER OF ITAT SURAT
This is an appeal filed against the order dated 03-09-2015 passed by CIT(A), Surat for assessment year 2005-06.
