Anurag Lakshman Pande Vs DCIT (ITAT Delhi)
ITAT Delhi held that indexation benefit is available to the assessee on the basis of his cost of acquisition of the property and capital gain is to be calculated accordingly.
Facts- In the year under consideration, the assessee sold two immovable properties, one being a residential property, for a total sale consideration of Rs.3,05,00,000/-. Whereas, the second property sold by the assessee was a commercial property for a total consideration of Rs.59,60,000/-.
In the computation of income, after claiming indexation benefit the assessee claimed long term capital loss in respect of both the properties sold. AO noticed that as against the sale consideration of Rs.3,05,00,000/- received in respect of residential property, the assessee had acquired it for a consideration of Rs.3,81,02,159/-. Whereas, in respect of the commercial property, as against the sale consideration of Rs.59,60,000/-, the assessee has set off indexed cost of acquisition of Rs.69,46,598/- and claimed long term capital loss of Rs.9,86,598/-.
AO rejected the indexed cost of acquisition claimed by the assessee and re-computed the capital gain by taking the cost of acquisition at Rs. 21,65,280/- and allowing benefit of indexed cost of Rs.25,86,880/-. This resulted in net long term capital gain of Rs.33,73,120/- as against long term capital loss of Rs. 9,86,598/- shown by the assessee.
