ITO, INTNL TAXN WARD-1(2), CHENNAI V. EASWARI SUKANYA KRISHNAN, CHENNAI

ITA 403/CHNY/2023

AI Insights

The case revolves around the determination of the base year from which the benefit of indexation should be applied for calculating capital gains on a property sold by the assessee, Smt. Easwari Sukanya Krishnan. The property, inherited through a settlement deed from her mother, was sold for Rs.394.70 Lacs. The assessee claimed indexation from the financial year 2001-02, resulting in a reported capital loss. However, the Assessing Officer (AO) restricted the indexation benefit to financial year 2014-15, the year of the settlement deed, leading to re-computed gains. The CIT(A) reversed the AO's decision, aligning with the precedent from the Madras High Court, which the revenue challenged in this appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134258 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-07-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 27-03-2023
• Other Referred Cases: CIT vs Saroja Naidu (128 Taxmann.com 127)
• Laws Referred To: CIT vs Saroja Naidu (128 Taxmann.com 127)
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय अिधकरण “बी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा ! एवं माननीय ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.403/Chny/2023 (िनधा*रण वष* / As sessment Year: 2019-20) ITO International Taxation Ward-1(2), Chennai. बनाम/ V s. Smt. Easwari Sukanya Krishnan 6, Judge Jambulingam Street, Mylapore,Chennai-600 004. थायीलेखासं./जीआइआरसं./PAN/GIR No. B NO PK -2 411- H (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri D.Hema Bhupal (JCIT)- Ld. Sr. DR थ कीओरसे/Respondent by : None सुनवाईकीतारीख/Date of Hearing : 17-07-2023 घोषणाकीतारीख /Date of Pronouncement : 17-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The sole grievance of the revenue in the captioned appeal is determination of base year from which the benefit of indexation would be available to the assessee. At the time of hearing, none appeared for assessee and accordingly, the appeal was disposed-off with the able assistance of Ld. Sr. DR who pleaded for restoration of assessment order. Upon perusal of case records, the appeal is disposed-off as under. 2. The assessee sold certain property during this year for Rs.394.70 Lacs. The assessee claimed indexation of cost from financial year 2001- 2 ITA No.403/Chny/2023 02 and arrived at capital loss of Rs.48.35 Lacs. The said property was acquired by the assessee under inheritance from her mother by way of settlement deed dated 05.03.2015. The Ld. AO held that the assessee acquired the rights in the property only from the date of settlement and therefore, indexation benefit would be available only from financial year 2014-15. The assessee relied on the ruling of Hon’ble High Court of Madras in CIT vs Saroja Naidu (128 Taxmann.com 127) to support the computations. However, rejecting the same, Ld. AO allowed indexation from financial year 2014-15 and re-computed gains at Rs.210.09 Lacs. The Ld. CIT(A) allowed the claim in terms of cited decision of Hon’ble High Court of Madras. Aggrieved, the revenue is in further appeal before us. 3. We find that the adjudication in the impugned order follows binding judicial precedent of jurisdictional High Court. The revenue could not controvert this position. Therefore, we do not find any fault in the impugned order. 4. The appeal stand dismissed. Order pronounced on 17 th July, 2023. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा34 / VICE PRESIDENT लेखा सद6 / ACCOUNTANT MEMBER चे8ई Chennai; िदनांक Dated : 17-07-2023 DS आदेशकीAितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु@/CIT 4. िवभागीय ितिनिध/DR 5. गाडEफाईल/GF