Case Law Details
Nitin Parkash Vs DCIT (ITAT Mumbai)
Conclusion: Assessee was entitled to the benefit of indexation on the total cost of acquisition from the year of allotment of flat dehors the fact that assessee had paid installments over a period of time subsequent to the date of allotment.
Held: The issue before consideration was whether the benefit of indexation on the installments paid for the flat should be allowed from the date of allotment of flat i.e. the F.Y. 2004-05 or assessee was eligible for the benefit of indexation on payment of installments in the year of actual payment. Assessee had computed indexation on cost of acquisition, on entire cost including installments paid in subsequent assessment years from the year of allotment i.e. F.Y.2004-05 at Rs.3,01,22,700/-, whereas AO had given the benefit of indexation from the year of actual payment of installment. As per AO, indexed cost of acquisition was Rs.2,55,28,616/-. Thus, AO made addition of Rs.45,94,084/- [ Rs.3,01,22,700 – Rs.2,55,28,616] on account of long term capital gains. It was held that following the decision in the case of Divine Holdings Pvt. Ltd., ITA No.6423/Mum/2008, assessee was entitled to the benefit of indexation on the total cost of acquisition from the year of allotment of flat dehors the fact that assessee had paid installments over a period of time subsequent to the date of allotment.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The appeal of the assessee in ITA No.817/mum/2015 is directed against the order of Commissioner of Income Tax (Appeals)-2, Thane [in short ‘the CIT(A)] dated 01/01/2015 for the Assessment Year 2011-12. This appeal is in the second round before the Tribunal. Earlier this appeal of the assessee was decided by the Tribunal vide order dated 19/03/2018. Thereafter, the assessee filed Miscellaneous Application, vide MA No.271/Mum/2018 seeking rectification in the order of Tribunal, stating that ground No.2 of the appeal was decided without considering the decisions cited by the assessee and placed on record in the paper book. The Tribunal vide order dated 03/10/2018 partially recalled the order dated 19/03/2018 in ITA No.817/Mum/2015 by observing as under:
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Author Bio
Dear All,
My client is in process of sale of residential house, which was brought 5 years back, he received 17.03.2023 as 3 lacs as token money, he did the sale agreement on 24.03.2023, and the final installment (due to the loan process ) will be received around on 15.04.2023, so when the capital gain point of tax will emerge.
whether a date of the agreement or final installment, please clarify.
thanks