ACIT 11(2), MUMBAI V. DR N.K. MALPANI LEGAL HEIR & HUSBAND OF LATE SMT. C.N. MALPANI, MUMBAI

ITA 3269/MUM/2010

• Counselvise Citation: 326919914 RSA 2010
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2006-2007
• Appeal Filed On: 26-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RK GUPTA
• Assessee Lawyers: A L SHARMA
• Keywords: Sale consideration of property below Jantri Value; Cost of acquisition

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES H, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SMT.ASHA VIJAYARAGHAVAN , JM ITA NO.3269/MUM/2010 : ASST.YEAR 2006-2007 THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 11(2) MUMBAI. VS. DR.N.K.MALPANI, LEGAL HEIR & HUSBAND OF LATE SMT.C.N.MALPANI ASHISH, 5 TH FLOOR, TARDEO MUMBAI 400 034. PAN : AAHPM2522N. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.K.GUPTA RESPONDENT BY : SHRI A.L.SHARMA O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 24.02.2010 IN RELATION TO ASSESSMENT YEAR 2006-2007 . 2. FIRST EFFECTIVE GROUND IS AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) ERRED IN DIRECTING THE A.O. TO ALLOW INDEXAT ION FROM 1.4.1981 ONWARDS TO THE ASSESSEE, RELYING ON THE DECISION OF THE HONBLE ITAT (SB) IN THE CASE OF DCIT VS. MANJULA J.SHAH (2009) 318 ITR (AT) 417. SECOND GROUND IS ELABORATION OF ABOVE GROUND NO. 1 ONLY. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE SOLD THREE PROPERTIES DURING THE YEAR IN WHICH CAPITAL GAIN AROSE. THE AS SESSING OFFICER TOOK STAMP VALUATION AS CONSIDERATION FOR SALE U/S.50C OF THE ACT. THE ASSESSEES EXPLANATION WITH REFERENCE TO INDEXATION WAS NOT ACCEPTED IN RE SPECT OF THE COST OF ACQUISITION TO THE PREVIOUS OWNER. THE ASSESSEE FURNISHED DETAI LS BEFORE THE LEARNED CIT(A), BEING COPIES OF ACQUISITION DEEDS OF THESE PROPERTI ES BY THE PREVIOUS OWNER TO INDICATE THAT THESE WERE ACQUIRED PRIOR TO 1.4.1981 FOR THE PURPOSES OF SEEKING ITA NO.3269/MUM/2010 DR.N.K.MALPANI, LH & HUSBAND OF LATE SMT.C.N.MALPANI 2 INDEXATION FROM THAT DATE. THE LEARNED CIT(A), REL YING ON THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF DCIT VS. MANJULA J.SHAH [(2009) 317 ITR (AT) 417], DIRECTED THE ASSESSING OFFICER TO RE-COMPUTE THE CA PITAL GAIN BY ALLOWING INDEXATION FROM1.4.1981 ACCORDINGLY. 4. WE HAVE HEARD BOTH SIDES AND PERUSED THE RELEVAN T MATERIAL ON RECORD. IT IS NOTICED FROM THE GROUND ITSELF, AS REPRODUCED ABOVE , THAT THE LEARNED CIT(A) HAS FOLLOWED THE SPECIAL BENCH ORDER IN SUPPORT OF HIS DECISION. NOTHING HAS BEEN BROUGHT ON RECORD BY THE LEARNED DEPARTMENTAL REPRE SENTATIVE TO INDICATE THAT THE SAID SPECIAL BENCH ORDER HAS BEEN REVERSED OR MODIF IED BY THE HONBLE BOMBAY HIGH COURT IN ANY MANNER. THE IMPUGNED ORDER, BEIN G IN CONFORMITY WITH THAT OF THE SPECIAL BENCH, IN OUR CONSIDERED OPINION IS UN IMPEACHABLE. WE, THEREFORE, UPHOLD THE SAME. 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 27 TH DAY OF APRIL, 2011 . SD/- SD/- (ASHA VIJAYARAGHAVAN) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 27 TH APRIL, 2011. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) III, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.