ITO (IT)- 2(2)(1), MUMBAI V. VIBHA HUTCHINS, MUMBAI

ITA 2973/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5419 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2014-2015
• Appeal Filed On: 09-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHARY ARUN KUMAR SINGH LD
• Assessee Lawyers: JITENDRA SINGH LD
• Keywords: Cost of acquisition; Set aside

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.2973/MUM/2018 ( / ASSESSMENT YEAR: 2014-15) ITO - (IT) - 2(2)(1) 17 TH FLOOR, ROOM NO.1725 AIR INDIA BUILDING, NARIMAN POINT MUMBAI 400 021 / VS. SMT. VIBHA HUTCHINS C/O J.S.BHATIA & CO. CA 14/15, ASHOK CENTER, 2 ND FLOOR LOKMANYA TILAK MARG NEXT TO GT HOSPITAL, MUMBAI- 400001 ! ./ ./PAN/GIR NO. AFDPH-7682-D ( /APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : SHRI JITENDRA SINGH LD. AR DEPARTMENT BY : CHAUDHARY ARUN KUMAR SINGH-LD.DR / DATE OF HEARING : 15/05/2019 / DATE OF PRONOUNCEMENT : 20/05/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER):- 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2014-15 CONTEST THE ORDER OF LD. COMMISSIO NER OF INCOME-TAX (APPEALS)-56, MUMBAI, [IN SHORT REFERRED TO AS CIT (A)], APPEAL NO. CIT(A)- 56/ITO(IT)-2(2)(1)/2016-16/254-H DATED 20/02/2018 ON FOLLOWING GROUNDS OF APPEAL: - 2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION MADE BY AO BY RELYING ON THE JUDGEMENT OF BOMBAY HIGH COURT IN THE CASE OF MANJULA SHAH VS. DCIT REPORTED IN 355 ITR 474 (BOM) (2013) WHEN THE SLP FILED IN THE SAID CASE IS PENDI NG BEFORE SC. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT(A) ERRED IN DIRECTING THE AO THAT INDEXED COST OF ACQUISITION S HOULD BE TAKEN FROM THE YEAR IN WHICH PREVIOUS OWNER ACQUIRED THE ASSET I.E. 01.04. 1981 AND NOT FROM THE YEAR IN WHICH ASSESSEE BECAME OWNER OF THE ASSET FOR PURPOS E OF COMPUTATION OF LTCG. 3. THE APPELLANT PRAYS THAT THE ORDER OF THE LD. CI T(A) ON THE ABOVE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED 2. AS EVIDENT FROM GROUNDS OF APPEAL, THE ISSUE BEF ORE US STAND IN A VERY NARROW COMPASS. THE ASSESSEE BEING RESIDENT INDIVIDUAL SOLD CERTAIN IMMOVABLE PROPERTY DURING THE IMPUGNED AY. THE UNDI SPUTED POSITION IS THAT THE ASSESSEE INHERITED THE SAID PROPERTY FROM HER PARENTS AND THE PROPERTY WAS PURCHASED BY THE PARENTS OF THE ASSESS EE BEFORE 01/04/1981. HENCE, THE BENEFIT OF INDEXATION WAS CLAIMED BY THE ASSESSEE FROM FY 1981-82 INSTEAD OF COST INFLATION INDEX OF THE YEAR IN WHICH OWNERSHIP WAS TRANSFERRED IN THE NAME OF THE ASSESSEE. ALTHOUGH T HE ASSESSEE RELIED ON THE JUDGEMENT OF HONBLE BOMBAY HIGH COURT RENDERED IN MANJULA SHAH VS. DCIT, HOWEVER, NOTICING THAT THE SPECIAL LEAVE PETITION FILED BY THE DEPARTMENT AGAINST THE SAME WAS PENDING BEFORE HON BLE SUPREME COURT, THE BENEFIT AS CLAIMED BY THE ASSESSEE WAS DENIED B Y LD. AO. THE LD. FIRST APPELLATE AUTHORITY REVERSED THE STAND OF LD. AO BY OBSERVING THAT THE SAID JUDICIAL PRONOUNCEMENT WAS BINDING. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 3. IT HAS BEEN BROUGHT TO THE NOTICE THAT EVEN THE DEPARTMENTS SPECIAL LEAVE PETITION AGAINST THE SAID BINDING JUDGEMENT HAS BEEN DISMISS ED BY HONBLE APEX COURT ON 18/09/2018 [SLP NO. 19924/2012] . ACCORDINGLY, NO INFIRMITY COULD BE FOUND IN THE IMPUGNED ORDER. 3 4. RESULTANTLY, THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON20/05/2019. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 20/05/2019 SR.PS:-JAISY VARGHESE ! '! / COPY OF THE ORDER FORWARDED TO : 1. !% / THE APPELLANT 2. &'!% / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. ( )& * , * , / DR, ITAT, MUMBAI 6. ) ,-. / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI