Case Law Details
Mr. Asif Khaleel (Individual) Vs ITO (ITAT Bangalore)
We notice that the AO did not allow the deduction of cost of acquisition of flats solely for the reason that the assessees have not declared capital gains in the year in which JDA was entered. We have also noticed that the Ld CIT(A) has not correctly interpreted the decision rendered by the co-ordinate bench. It is well settled proposition of law that the income of a particular year is assessable in that year only. Hence the capital gain arising on entering JDA is assessable only in the year in which the JDA was entered. If the assessees have not declared capital gains in the appropriate year, the AO may take appropriate action to tax the same in accordance with the law. But, in our view, the failure of the assessees to offer capital gains in the appropriate year will not disentitle the assessee to claim cost of acquisition. Accordingly, we are of the view that the AO was also not right in law in rejecting the said claim of the assessees for deduction of correct amount of cost of acquisition/indexed cost of acquisition.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The appeals filed by the respective assessees are directed against the orders passed by Ld. CIT(A)-10, Bengaluru in their respective hands and they relate to the assessment year 2014-15. Since the issues urged in these appeals are identical in nature, all these appeals were heard together and are being disposed of by this common order, for the sake of convenience.
2. The grounds urged by the assessees give rise to a single issue, viz., “what will the cost of acquisition of flats sold by these assessees?”
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