ACIT CIR 16(2), MUMBAI V. SAGOON SATYAPAL SAIGAL, MUMBAI

ITA 7245/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75419 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2008-2009
• Appeal Filed On: 06-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK SURI
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI . . , , , BEFORE SHRI B.R. B ASKARAN , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIAL MEMBER . / ITA NO. 7245 / MUM./ 2012 ( / ASSESSMENT YEAR : 20 0 8 09 ) ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 16(2), MATRU MANDIR TARDEO ROAD, MUMBAI 400 007 .. / APPELLANT V/S MR. SAGOON SATYPAL SAIGAL 15A 1, PRITHVI APARTMENT ALTAMOUNT ROAD, GRANT ROAD MUMBAI 400 036 .... / RESPONDENT . / PERMANENT ACCOUNT NUMBER BJXPS0134C / REVENUE BY : MR. ASHOK SURI / ASSESSE E BY : NONE / DATE OF HEARING 1 3 . 0 2 .201 4 / DATE OF ORDER 14.02.2014 / ORDER , / PER AMIT SHUKLA , J.M. THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENUE CHALLENGING TH E IMPUGNED ORDER DATED 18 TH SEPTEMBER 2012 , PASSED BY THE COMMISSIONER (APPEALS) XX VII , MUMBAI, FOR THE QUANTUM OF M/S. SOVEREIGN SECURITIES PV T. LTD. 2 ASSESSMENT PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT' ) FOR THE ASSESSMENT YEAR 20 08 09 . 2 . WHEN THE CASE WAS CALLED FOR HEARING NEITHER THE ASSESSEE NOR ANY OF HIS AUTHORIZED REPRESENTATIVES APPEARED BEFORE US TO ASSIST THE BENCH TO DISPOSE OF THE APPEAL PREFERRED BY THE REVENUE. WE, HOWEVER, PROCEED TO DECIDE THE REVENUES APPEAL ON MERIT AFTER HEARING THE LEARN ED DEPARTMENTAL REPRESENTATIVE. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENUE: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN DIRECTING THE A.O. TO ADOPT COST OF INFLATION INDEX FOR FY 1981 82 INSTEAD OF COS T OF INFLATION INDEX OF FINANCIAL YEAR 1989 90 WHEN THE ASSESSEE BECAME OWNER OF THE PROPERTY CITING THE JUDGMENT IN THE CASE OF SMT. MANJULA J. SHAH, WITHOUT APPRECIATING THE FACT THAT REVENUE HAS NOT ACCEPTED THE DECISION AND SLP HAS BEEN FILED IN THE SU PREME COURT. 3 . THE ASSESSEE HAS SHOWN LONG TERM CAPITAL GAIN OF ` 78,64,046 ON SALE OF THE INHERITED PROPERTY WHICH DEVOLVED UPON HIM AFTER THE DEATH OF HIS FATHER , IN THE FINANCIAL YEAR 1989 90. THE SAID PROPERTY WAS ORIGINALLY ACQUIRED BY HIS FATHER MUCH BEFORE THE YEAR 1981. THE ASSESSING OFFICER DENIED THE INDEXATION FROM THE YEAR OF ACQUISITION OF THE PREVIOUS OWNER THAT IS 1 ST APRIL 1981, BUT FROM THE YEAR IN WHICH THE ASSESSEE INHERITED THE PROPERTY. THE LEARNED C IT(A) HAS ALLOWED THE BENEFIT OF COST INFLATION INDEX FROM 1 ST APRIL 1981 THAT IS FROM THE DATE WHEN THE PREVIOUS OWNER ACQUIRED THE PROPERTY, AFTER FOLLOWING THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN SMT. MANJULA J. SHAH, ITA NO.3378 OF 2010, ORDER DATED 11 TH OCTOBE R 2011, 4 . AFTER CONSI DERING THE ISSUE INVOLVED AND THE ORDER OF THE LEARNED COMMISSIONER (APPEALS), WE FIND THAT THE ISSUE FOR OUR ADJUDICATION IS COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE M/S. SOVEREIGN SECURITIES PV T. LTD. 3 DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN SMT. MAJULA J. SHAH (SUPRA) , WHEREIN THEIR LORDSHIPS HELD THAT THE DATE OF ACQUISITION OF PREVIOUS OWNER SHOULD BE TAKEN FOR THE PURPOSE OF INDEXATION. THUS, R ESPECTFULLY FOLLOWING THE AFORESAID DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT , WE DO NOT FIND ANY REA SON TO INTERFERE WITH THE ORDER PASSED BY THE LEARNED COMMISSIONER (APPEALS). ACCORDINGLY, THE GROUND RAISED BY THE REVENUE STANDS DISMISSED. 5 . 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. 14 TH FEBRUARY 2014 ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH FEBRUARY 2014 SD / - . . B.R. B ASKARAN ACCOUNTANT MEMBER SD / - AMIT SHUKLA JUDICIAL MEMBER MUMBAI, DATED : 14 TH FEBRUARY 2014 / COPY OF THE ORDER FORWARDED TO : ( 1 ) / THE ASSESSEE ; ( 2 ) / THE REVENUE; ( 3 ) ( ) / THE CIT(A ) ; ( 4 ) / THE CIT, MUMBAI CITY CONCERNED ; ( 5 ) , , / THE DR, ITAT, MUMBAI ; ( 6 ) / GUARD FILE . / TRUE COPY / BY ORDER . / PRADEEP J. CHOWDHURY / SR. PRIVATE SECRETARY / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI