ADIL NOSHIRVAN SHETHNA,SURAT V. ITO, WARD 2(3)(6), SURAT

ITA 898/SRT/2024

AI Insights

The case involves an appeal by Adil Noshirvan Shethna against the order of the CIT(A), Surat, concerning the assessment year 2005-06. The dispute centered on the year of indexation for calculating the long-term capital gains on a property sold by the assessee. The property, inherited by the assessee after the death of the previous owner, was sold for a share amounting to Rs. 22,79,776, while the stamp valuation authority assessed it at Rs. 68,38,000. The A.O. used 1996-97 as the year of indexation, leading to an additional tax liability of Rs. 2,16,465, which the assessee contested, claiming 1985-86 as the correct year.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831718 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 21-08-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH KUMAR
• Assessee Lawyers: SURESH K. KABRA
• Keywords: Cost of acquisition

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT “SMC” BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 898/SRT/2024 (Assessment Year: 2005-06) Adil Noshirvan Shethna 12/1134, Vanki Bordi, Shahpore, Surat PAN : ABLPS0201R Vs. The ITO, Ward-2(3)(6), Surat (Appellant) .. (Respondent) Appellant by : Shri Suresh K. Kabra, CA Respondent by: Shri Ashish Kumar, Sr. D.R. Date of Hearing 19.01.2026 Date of Pronouncement 23.01.2026 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:- This is an appeal filed against the order dated 03-09-2015 passed by CIT(A), Surat for assessment year 2005-06. 2. The assessee sold the property in which his share was ¼ amounts to Rs. 22,79,776/-. The stamp valuation authority valued the property at Rs.68,38,000/-. The A.O. while computing the long term capital gain held that the indexed cost for the year was 1996-97 in place of year 85-86 which is a correct year of indexation. Consequently, the A.O. made addition of Rs. 2,16,465/-. The ld. A.R. submitted that the CIT(A) is not right in confirming the year of cost of acquisition 1996-97 as against claim of assessee i.e. 1985-86. The ld. A.R. submitted that the assessee has given the details related to the calculation taking the Printed from counselvise.com ITA No. 898/Srt/2024 Adil Noshirvan Shethna Vs. ITO Asst. Year : 2005-06 - 2– cost of inflation index for the year in which the assesse first time held a property. The assessee received the said property after death of the earlier owner of the land as one of the heirs through will and therefore we hold that the assesse has rightly indexed cost of indexation from the year 1985-86. 3. In the result, the appeal of the assesse is allowed. The order is pronounced in the open Court on 23.01.2026 Sd/- Sd/- Sd/- Sd/- (DR. B.R.R. KUMAR) (SUCHITRA KAMBLE) VICE-PRESIDENT JUDICIAL MEMBER Surat; Dated 23/01/2026 ak आदेश की \u0007ितिलिप अ ेिषत/ / / /Copy of the Order forwarded to : 1. अपीलाथ\u0011 / The Appellant 2. \u0007\u0012थ\u0011 / The Respondent. 3. संबंिधत आयकर आयु\u001a / Concerned CIT 4. आयकर आयु\u001a ) ) ) ) अपील ( ( ( ( / The CIT(A)- 5. िवभागीय \u0007ितिनिध , , , , आयकर अपीलीय अिधकरण , , , , /DR,ITAT, Surat, 6. गाड! फाईल / / / / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat Printed from counselvise.com "