Case Law Details
Lakshman M. Charanjiva Vs ITO (ITAT Mumbai)
Indexation benefit against the cost of acquisition shall be available to the assessee on the basis of index of the year in which the payments were actually made by the assessee. The payment made up-to the date of agreement i.e. 18/10/2007 shall be indexed by applying the index for Financial Year 2007-08. Accordingly, subsequent payments made in different financial years shall be indexed by applying the respective indexes of those years.
FULL TEXT OF THE ITAT JUDGMENT
1. Aforesaid appeal by assessee for Assessment Year [AY] 2013-14 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-55 [CIT(A)], Mumbai, Appeal No.CIT(A)-55/IT-114/2015-16 dated 05/10/2016 by raising following grounds of appeal:-
1. “On the facts and in the circumstances of the case and in law, the Learned Commissioner of Income-tax (Appeals) erred in holding that for the purpose of computation of Long Term Capital gains, the indexed cost of acquisition of property has to be calculated, based on the schedule of payments made, relying on the decision of the Hon. ITAT, Mumbai Bench “F” Mumbai in ITA NO.6120/Mum/2010 in the case of Shri Vikas P. Bajaj vs. ACIT 14(3), Mumbai and not on the basis of Financial Year 2007-08 in which the agreement for acquiring the property was entered into and registered, as claimed by the appellant, which is supported by the decision of the Hon. ITAT, Mumbai Bench “D”, Mumbai in ITA No.6578/Mum/2010 in the case of ACIT CIT 9(3), Mumbai vs. Shri Ramprakash Bubna.
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