ITO, CHENNAI V. Gayatri Rao, CHENNAI

ITA 531/CHNY/2015

• Counselvise Citation: 53121714 RSA 2015
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 10-07-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 16-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: D ANAND
• Keywords: Fair market value

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL S M C BENCH, CHENNAI ... , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER ./ ITA NO.531/MDS/2015 ' #$' / ASSESSMENT YEAR : 2006-07 THE INCOME TAX OFFICER, INTERNATIONAL TAXATION 2(1), CHENNAI - 600 034. V. SMT. GAYATRI RAO, C/O SH.N. SREEKANTH, GSS & ASSOCIATES, 188, POONAMALLEE HIGH ROAD, GROUND FLOOR, MIDDLE BLOCK, CHENNAI - 600 010. PAN : AADPR 3043 D (&'/ APPELLANT) (()&'/ RESPONDENT) &' * + / APPELLANT BY : SH. P. RADHAKRISHNAN, JCIT ()&' * + / RESPONDENT BY : SH. D. ANAND, ADVOCATE , # * -. / DATE OF HEARING : 10.07.2015 /0$ * -. / DATE OF PRONOUNCEMENT : 07.08.2015 / O R D E R THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-16, CHENNA I, DATED 27.01.2015 AND PERTAINS TO ASSESSMENT YEAR 2006-07. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO DE TERMINATION OF FAIR MARKET VALUE FOR THE PURPOSE OF COMPUTING CAPITAL G AINS. 2 I.T.A. NO.531/MDS/2015 2. SH. P. RADHAKRISHNAN, THE LD. DEPARTMENTAL REPRE SENTATIVE, SUBMITTED THAT THE ASSESSEE INHERITED A PROPERTY FR OM HER FATHER. HOWEVER, SHE IS CLAIMING INDEXATION FROM 1981. ACC ORDING TO THE LD. D.R., THE DATE ON WHICH THE ASSESSEE INHERITED THE PROPERTY FROM HER FATHER HAS TO BE TAKEN INTO CONSIDERATION FOR THE PURPOSE OF COMPUTATION OF CAPITAL GAIN AND NOT FROM THE DATE O N WHICH HER FATHER OWNED THE PROPERTY. THE LD. D.R. PLACED HIS RELIANCE ON EXPLANATION (III) TO SECTION 48 OF THE INCOME-TAX A CT, 1961 (IN SHORT 'THE ACT'). 3. ON THE CONTRARY, SHRI D. ANAND, THE LD. COUNSEL FOR THE ASSESSEE, SUBMITTED THAT AS PER SECTION 49 OF THE A CT, WHEN A PROPERTY WAS INHERITED FROM PARENTS, THE COST OF TH E PROPERTY TO THE PARENTS HAS TO BE TAKEN FOR THE PURPOSE OF INDEXATI ON. THE LD. COUNSEL PLACED HIS RELIANCE ON THE DECISION OF THIS BENCH OF THE TRIBUNAL IN ITO V. SHRI SYED SHIRAZI IN I.T.A. NO.1 998/MDS/2014 DATED 30.10.2014 AND SUBMITTED THAT THIS TRIBUNAL, BY PLACING RELIANCE ON THE JUDGEMENT OF BOMBAY HIGH COURT IN C IT V. MANJULA J. SHAH (2013) 355 ITR 474, FOUND THAT THE COST OF INDEXATION HAS TO BE COMPUTED BY TAKING INTO CONSIDERATION THE COST O F THE PROPERTY FOR WHICH THE PARENTS OF THE ASSESSEE ACQUIRED IT. 3 I.T.A. NO.531/MDS/2015 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHE R SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. ADMITTEDL Y, THE PROPERTY WAS INHERITED BY THE ASSESSEE FROM HER PARENTS. TH EREFORE, IN VIEW OF SECTION 49 OF THE ACT, THE COST OF THE PROPERTY AS THAT OF THE PREVIOUS OWNER HAS TO BE TAKEN FOR CONSIDERATION. IN FACT, THE CIT(APPEALS) BY FOLLOWING THE JUDGEMENT OF BOMBAY H IGH COURT IN CIT V. MANJULA J. SHAH (SUPRA), HAS ALLOWED THE CLA IM OF THE ASSESSEE. THIS TRIBUNAL IN THE CASE OF SHRI SYED A LI SHIRAZI (SUPRA) HAS ALSO CONFIRMED AN IDENTICAL ISSUE BY PLACING RE LIANCE ON THE ABOVE SAID JUDGEMENT OF BOMBAY HIGH COURT. THEREFO RE, THIS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED ON 7 TH AUGUST, 2015 AT CHENNAI. SD/- ( ... ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 2 /DATED, THE 7 TH AUGUST, 2015. KRI. 4 I.T.A. NO.531/MDS/2015 * (-34 54$- /COPY TO: 1. &' /APPELLANT 2. ()&' /RESPONDENT 3. , 6- () /CIT(A)-16, CHENNAI-34 4. , 6- /CIT(INTERNATIONAL TAXATION), CHENNAI 5. 4#7 (- /DR 6. 8' 9 /GF.