Indexation Benefit for Acquisition Costs Based on Payment Year’s Index: ITAT

Bushra Javed Vs ACIT (ITAT Delhi) Introduction: The case of Bushra Javed Vs ACIT before the ITAT Delhi discusses a specific point of contention surrounding the indexation benefit for acquisition costs, based on the year’s index of payment. The appeal by the assessee was against an order that added costs to the acquisition with indexation and cost of improvement with indexation for the Assessment Year 2018-19. The following sections will present an in-depth analysis and conclusion of this important decision. Analysis: The crux of the issue lay in the method of calculating the indexed cost...