Chandrasekaran, Trichy V. CIT(A), Trichy

ITA 2441/CHNY/2006

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 51955 (ITAT-CHENNAI)
• Duration Of Justice: 4 year(s) 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 13-10-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 18-12-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR STAND ING
• Assessee Lawyers: V D GOPAL
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER ITA NO.2441(MDS)/2006 ASSESSMENT YEAR: 2001-02 SHRI S.CHANDRASEKARAN, 8, GURUNATHAN STREET, TENNUR, TIRUCHIRAPALLI. PAN AABPC4701F. VS. THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE III, TIRUCHIRAPALLI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V.D.GOPAL, ADVOCATE RESPONDENT BY : SHRI KEB RENGARAJAN, JR.STAN DING COUNSEL DATE OF HEARING : 13 TH OCTOBER, 2011 DATE OF PRONOUNCEMENT : 13 TH OCTOBER, 2011 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE ASSESSEE. THE RELEVA NT ASSESSMENT YEAR IS 2001-02. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) AT - - ITA NO.2441 OF 2006 2 TIRUCHIRAPALLI, DATED 20-9-2006 AND ARISES OUT OF T HE ASSESSMENT ORDER PASSED UNDER SECTION 143(3), READ WITH SECTIO N 147 OF THE INCOME-TAX ACT, 1961. 2. THE ASSESSEE, ALONGWITH ANOTHER CO-OWNER, HAD SOLD HIS LANDED PROPERTY WITH BUILDINGS AND PREMISE S, OUT OF WHICH CAPITAL GAINS AROSE, WHICH WAS OFFERED FOR TA XATION. THE CLAIM OF THE ASSESSEE WAS THAT THE ASSESSEE HAD SOL D THE ENTIRE HOUSE BUILDING AND PREMISES INCLUDING THE LAND AND, THEREFORE, THE ASSESSEE WAS ENTITLED TO DEDUCTION AS DULY INDE XED ON THE ENTIRE PURCHASE CONSIDERATION OF THE LAND AND THE C OST OF CONSTRUCTION OF THE BUILDING THEREON TOGETHER WITH THE COST OF IMPROVEMENTS WHILE COMPUTING THE CAPITAL GAINS. BU T THE ASSESSING OFFICER HELD THAT THE COST OF THE BUILDIN G WAS WRONGLY CLAIMED BY THE ASSESSEE IN ORDER TO REDUCE THE QUAN TUM OF LONG TERM CAPITAL GAINS. HE ALLOWED INDEXATION ONLY TO THE LAND. THIS POSITION WAS CONFIRMED BY THE COMMISSIONER OF INCOM E- TAX(APPEALS) AND THEREFORE THE SECOND APPEAL BEFORE US. - - ITA NO.2441 OF 2006 3 3. IT IS SEEN THAT IN THE CASE OF THE OTHER CO-OWN ER OF THE PROPERTY SOLD, THE ASSESSING AUTHORITY HAS ACCE PTED THE CONTENTION OF THAT CO-OWNER SIMILAR TO THE CONTENTI ON RAISED BY THE ASSESSEE IN THE PRESENT CASE. A COPY OF THE AS SESSMENT ORDER IN THE CASE OF THE OTHER CO-OWNER IS AVAILABL E AT PAGES 18 TO 21 OF THE PAPER-BOOK FILED BEFORE US. IN THE CA SE OF THAT CO- OWNER SHRI S.VISWANATHAN, THE ASSESSING AUTHORITY H AS GRANTED THE BENEFIT OF INDEXATION IN RESPECT OF THE BUILDIN GS AND IMPROVEMENTS ALSO. WHEN THIS POSITION HAS BEEN ACC EPTED IN THE CASE OF THE CO-OWNER, IT IS NOT PROPER TO TAKE A DIFFERENT YARDSTICK IN THE CASE OF THE OTHER CO-OWNER, WHO IS THE ASSESSEE. THEREFORE, WE SET ASIDE THE ORDER OF THE ASSESSING AUTHORITY ON THIS POINT AND DIRECT HIM TO RECOMPUTE THE LONG TER M CAPITAL GAINS IN THE SAME LINE AS IN THE CASE OF THE OTHER CO-OWN ER OF THE PROPERTY, SHRI S.VISWANATHAN. 4. IN RESULT THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. - - ITA NO.2441 OF 2006 4 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THURSDAY, THE 13 TH OF OCTOBER, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 13 TH OCTOBER, 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.