Case Law Details
D. K. Brothers Vs ITO (ITAT Mumbai)
Introduction: In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Mumbai, in the case of D.K. Brothers vs. ITO, has set aside the order passed by the National Faceless Appeal Centre (NFAC) regarding the assessment year 2011-12. The dispute revolves around the computation of capital gains, with the key contention being the date of acquisition. This article delves into the details of the case and the implications of the ITAT Mumbai order.
Detailed Analysis: The appellant, M/s. D.K. Brothers, challenged the assessment order passed by the Assessing Officer (AO), who determined the total income at Rs. 45,49,200 under short-term capital gains. The AO considered the date of registration of the property on 15.09.2010 as the acquisition date, contrary to the appellant’s claim of using the property allotment date, 28.01.1992, for computing long-term capital loss.
The dispute centers around the correct date of acquisition for capital gain calculation. The AO’s decision was upheld by the Commissioner of Income Tax (Appeals) [CIT(A)], leading the appellant to appeal to the ITAT Mumbai.
The ITAT Mumbai, after considering the facts and legal aspects, concluded that the date of property allotment, 28.01.1992, should be considered as the acquisition date for computing capital gains. This decision is in line with established principles and precedents, emphasizing the importance of the allotment date in such cases.
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