Yogesh Gandhi, New Delhi V. ACIT, Circle 1(3)(1), International Taxation, New Delhi

ITA 768/DEL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8363 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 27-02-2024
• Assessment Year: 2019-2020
• Appeal Filed On: 20-03-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RISHABH OSTWAL
• Section: 144; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D” DELHI BEFORE SHRI SAKTIJIT DEY-VICE PRESIDENT & SHRI PRADIP KUMAR KEDIA-ACCOUNTANT MEMBER I.T.A. No.768/DEL/2023 Assessment Year 2019-20 Yogesh Gandhi C-2/14, Safdarjung Development Area New Delhi. Vs. ACIT Central Circle -1(3)(1) International Taxation New Delhi TAN/PAN: AAIPG4922F (Appellant) (Respondent) Appellant by: Shri Rishabh Ostwal, Advocate Shri Deepak Ostwal, Chartered Accountant Respondent by: Shri Vizay B. Vasanta, CIT-DR Date of hearing: 28 02 2024 Date of pronouncement: 07 03 2024 O R D E R PER PRADIP KUMAR KEDIA-A.M. : T h e c a p t i o n e d a p pe a l ha s b e e n f i l e d a t t h e in s t a n ce o f t h e a s s e s s e e a ga i n s t t he f in a l a s s e s s m e n t or d e r d a t e d 22 . 0 6. 2 02 2 p a s s e d u n d e r Se c t i on 14 3 (3 ) r . w . Se c t i o n 1 44 C (1 3 ) pa s s e d i n pu r s ua n c e o f di r e c t i o ns i s s u e d b y D i s p ut e R e s o l ut i on P a n e l (D R P) d a te d 1 0. 0 5. 2 0 22 re le va nt t o A s s e s s m e n t Y e a r 2 0 19 - 2 0 . 2. A t t h e ti m e o f h e a r i n g, t he l d . c o u ns e l f or th e a s s e s s e e p oi n t e d o ut t ha t t h e s ol i t a r y i s s u e f o r d e t e rm i n a t io n o f th e T ri b u n a l i s a l l ow a b i l i t y o f R s . 15 , 4 0 , 0 0 0 / - t o w a r d s c os t of a c q u i s i t io n / i m p ro vem e n t o f t he pr o pe r t y re c e i ve d b y w a y o f f a m i l y s e t t l e me n t w h i c h p r o p e rt y ha s be e n s o l d du r i n g t he ye a r u n d e r c on s i d e r a t i on . 3. T h e l d . c o u n s e l f o r t he a s s e s s e e s u bm i t t e d th a t t he a s s e s s e e i s a N o n R e s i d e n t I n d i a n ( N R I ) c i ti z e n , re s i d e nt o f U SA . T h e a s s e s s e e h a s be e n a p e r ma n e nt re s i d e nt of U S A f o r m o re t ha n 5 0 ye a rs . H i s f a t h e r - La t e S hr i Si t a ra m G a n d hi a c q ui r e d p ro p e r t y in q ue s ti o n , i . e . , C - 2/ 1 4 S D A N e w D e l h i -2 1 o n 1 9 . 1 1 . 1 9 6 5 . F a t h e r – La t e S h r i S i t ar a m G a nd h i h a d I.T.A. No.768/Del/2023 2 t hr e e s o n s ( i ) Sh r i A vi n a s h P ra k a s h G a nd h i ( i i ) S h ri P r e m P r a ka s h G a n dh i ( i i i ) S h r i Y o ge s h G a n dh i , i . e . , a s s e s s e e . F at he r – La t e Sh ri Si t a ra m G a n d h i gi f t e d / t r a ns f e r re d t h i s p ro p e r t y on 2 1 . 01 . 1 96 6 i n t he na m e o f h is e l d e s t s o n Sh ri A vi na s h P r a ka s h G a n dh i w h o ha p p e n e d t o be on l y s o n r e s i di n g i n I nd i a . Fa t he r - L a t e Sh ri Si t ara m G a n dh i pa s s e d a w a y o n 2 9 . 1 0 . 1 9 9 6 . T h e h o us e i n qu e s t i on , w a s t h e p ro p e rt y o f La t e Sh ri Si t a r a m G a nd h i bu t t he t i t l e w a s i n t he n a m e of br o t he r S hr i A v i na s h P r a ka s h G a n dh i , a l t ho u g h tw o y o u n ge r br o t h e r s i nc l udi n g a s s e s s e e h a d e qu a l s h a re i n t hi s p r o p e rt y w i t ho u t a n y l e ga l t i t le . 3. 1 T h e po t e n t i a l d is pu t e to w a r ds s h a r e i n t h e pr o pe r t y w a s s e tt l e d i n a f a m i l y m e d i a t i o n / s e t t l e m e nt a n d i t w a s a gr e e d t hat Sh ri A vi na s h P r a ka s h G a n dh i w o ul d t ra n s f e r 2 / 3 s h a re i n t he p ro pe r t y b y w a y of gi f t i n t he n a m e o f h is tw o b ro t he r s , i nc l u di n g a s s e s s e e , re s i d i n g i n U S A . A pe r m i s s i o n w a s o b t a i ne d f ro m D e lh i D e ve l o pm e n t A u t ho r it y i n O c to b e r , 20 1 2 f or re c o gn i t i o n o f r i g ht f ul e nt i t l e m e nt o f o t he r tw o b ro t he r s , o ne o f w h i c h i s a s s e s s e e . T o a vo i d a n y d o ub t or d is pu t e a nd t o s e c u r e c l e a r l e ga l t i tl e o ve r th e s a i d p ro p e rt y , t he a s s e s s e e de c i de d t o p a y s t a m p d u t y c ha r ge s f o r r e gi s t r a t i on of hi s s ha r e i n t h e s a i d pro p e r t y a s p e r s t a m p du t y va l u a t io n . T he s a i d c o s t t o w a r d s s t a m p d u t y w as b o r ne b y t he a s s e s s e e a n d a C o n ve ya nc e D e e d w a s e x e c ut e d . O n p a ym e n t of s t a m p du t y o f R s . 11 . 40 l a k h e a c h b y tw o b r o t h e r s , 2 / 3 s har e of t he p ro p e rt y w a s t ra n s f e r r e d i n t he n a m e of Sh ri P re m P r a k a s h G a nd hi a n d S h r i Y o ge s h G a n dh i , i . e . a s s e s s e e . Th e p ro pe r t y w a s s o l d i n t he a s s e s s m e n t ye a r i n qu e s t i o n a n d c a p it a l ga i n t h e r e o n w a s c a l c u l a te d a ft e r de d uc t i n g c os t o f a c qu i s i t i o n . T he a s s e s s e e a l s o i nc l u de d c o s t of s t am p d ut y c h a r ge s o f R s . 11 , 4 0 , 0 0 0 / - w hi c h w a s i n de x e d a t R s . 1 5, 4 0, 0 0 0/ - a s pa r t o f t he c o s t o f a c qu i s i t i o n . 3. 2 T h e A O ha s de n i e d t h e de d uc t i o n t o w a r ds s t a m p du t y c o s t o f R s . 11 , 4 0 , 0 0 0 / - w h i le gr a nt i n g t he c o s t o f a c qu i s i t ion w o r ke d o ut a s p e r Fa i r M a r k e t V a l u e a s o n 01 . 0 4. 2 0 0 1 t o w a r ds t h e 1 / 3 s h a r e i n t he pr o pe r t y. T h e A O d e ni e d t he c l a i m i n t he l i ght o f th e D R P di r e c ti o n s t ha t s t a m p d ut y p a i d o n gi f t d e e d d oe s n ot c on s t i t ut e c os t o f i m p r o ve m e nt o f I.T.A. No.768/Del/2023 3 pr o pe r t y. 4. O n pe r u s a l o f r e c o r ds a n d i n t he l i gh t of f a c t ual m a tr i x p l a c e d be f or e u s on be h a l f o f t h e a s s e s s e e , w e s e e n o p e rce p t i b l e j us t if i c a t i on i n t he a c t i o n o f th e R e ve nu e . T h e A O h a s d u l y a c c e p t e d t he f a c t um o f t ra n s f e r o f 1 / 3 s ha r e in t h e p r o p e rt y f r om h i s b r o the r t o t h e a s s e s s e e . F a i r M a r ke t V a l ue a s o n 01 . 0 4. 2 0 01 t o w a rd s c os t of a c q u is i ti o n h a s b e e n a c c e p t e d. T he on l y di s p u te re vo l ve s a r ou n d t h e s t a mp d u t y e x pe n s e s i nc u r r e d i n 2 01 2 f o r ob t a i ni n g c l e a r l e ga l t i t l e i n t h e p r o pe r t y. W e a re un a b le t o un d e r s t a n d t h e r a t i on a l e f o r d e ni a l o f s ta m p du t y b e i n g i nt e gra l pa r t o f t he c os t o f a c q u i s i t i o n / i mp r o ve m e nt . T he f a c t u a l m a t ri x p l a c e d be f or e us s p e a ks f or i t s e l f . T h e s t a m p du t y e x pe n s es i nc u r r e d b y t he a s s e s s e e f or o b ta i n i n g c l e a r t i t l e i n t h e p r op e rt y t h us c a n no t b e s e e n di f f e r e nt l y bu t i s p a r t a nd p a rc e l of t he c o s t o f ac q ui s i t i o n i t s e l f . T he a c ti o n of t he A O i n t hi s r e ga r d th u s de s e r ve s t o b e s e t a s i de a nd c a nc e l l e d. T he A O is d i re c t e d t o in c l ud e t h e s t a m p d ut y c o s t a s pa r t o f a c qu i s i t i o n c o s t a n d re - d e t e r m i ne th e t a x a bl e c a p i ta l ga in i n a c c o rd a nc e w i t h la w . 5. I n t h e r e s ul t , t h e a p p e a l of t he a s s e s s e e i s a l lo w e d . Order pronounced in the open Court on 07/03/2024 Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] VICE PRESIDENT ACCOUNTANT MEMBER DATED: /03/2024 Prabhat