MR ABRAHAM NINAN V. THE COMMISSIONER OF

WP/45746/2015

AI Insights

The case involves Mr. Abraham Ninan, the petitioner, who challenged the orders of the Commissioner of Income Tax and the Assistant Commissioner of Income Tax regarding the assessment of capital gains for the year 2008-09. The petitioner contested the application of the cost of acquisition in computing capital gains from the sale of individual flats. The High Court heard arguments from both parties and focused on whether the Assessing Officer had correctly applied the observations made in the earlier order concerning the proportional reduction of the cost of acquisition from the sale value of the flats. The court's decision primarily directed the second respondent to adhere to the specified method of computation as per the earlier observations.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 726671 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 06-01-2023
• Assessment Year: misc
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: IINITA CHATTERJEE; S PARTHASARATHI
• Keywords: Assessment Year 2008-09; Capital Gains; Income Tax; Order Quash; Writ petition
• Section: 143(3); 264; 227

Judgement Text

"IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 06TH DAY OF JANUARY 2023 BEFORE THE HON’BLE MR. JUSTICE B. M. SHYAM PRASAD WRIT PETITION NO.45746/2015 (T-IT)) BETWEEN : MR ABRAHAM NINAN AGED ABOUT 59 YEARS SON OF MR N G NINAN NO. 02, 1ST MAIN, 4TH BLOCK HBR LAYOUT BENGALURU – 560043. ... PETITIONER (BY SMT. IINITA CHATTERJEE, ADVOCATE SRI. S PARTHASARATHI, ADVOCATE) AND : 1 . THE COMMISSIONER OF INCOME TAX BENGALURU - 01 1ST FLOOR, C R BUILDINGS QUEENS ROAD BENGALURU – 560001. 2 . THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE - 6 (1) 5TH FLOOR RASHTROTHANA PARISHAD BHAVAN 14/2 NRUPATHUNGA ROAD BANGALORE – 560001. ... RESPONDENTS (BY SRI. K.V. ARAVIND, ADVOCATE) 2 THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF THE R-1 DATED 30.3.2015 PASSED U/S 264 OF THE ACT FOR THE ASSESSMENT YEAR 2008-09 VIDE ANNX-G; QUASH THE ASSESSMENT ORDER DATED 26.8.2010 PASSED U/S 143(3) OF THE ACT FOR THE ASSESSMENT YEAR 2008-09 BY THE R-2 (ANNX-B); DIRECT THE R-2 TO RE-COMPUTE THE CAPITAL GAINS FOR THE RELEVANT ASSESSMENT YEAR. THIS WRIT PETITION COMING ON FOR HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: O R D E R The petitioner has impugned the first respondent’s order dated 30.03.2015 in F.No.Pr.CIT/BLR- 1/u/s264/2014-15 [Annexure-G], which is under Section 264 of the Income-Tax Act, 1961 with the further prayer for quashing the assessment order dated 26.08.2010 [Annexure-B]. Smt. Iinita Chatterjee and Sri. K.V. Aravind, the learned Counsel for the petitioner and the learned counsel for the respondent are heard. Though multiple grounds are urged, Smt. Iinita Chatterjee finally submits that the petitioner’s grievance 3 could be addressed if there is suitable direction to give effect to the observation in the impugned order for the assessment year 2008-09, and in this regard, she draws this Court’s attention to the following: “When computing the capital gains at the stage of sale of individual flats, the above cost of acquisition should be taken proportionately and be reduced from the sale of the value of flats.” If there is any observation that while computing capital gains at the stage of sale of individual flats, the cost of acquisition should be taken proportionately and reduced from the sale value of each apartment, the Assessing Officer [the second respondent] must indeed give effect to the same. As it is not borne out by the records that this is given effect to, this Court is of the considered opinion that the petition must be disposed of calling upon the second respondent to give effect to the 4 aforesaid observation after extending due opportunity to the petitioner. Hence, the petition stands disposed of calling upon the second respondent to give effect to the observation as aforesaid insofar as the sale of the flats effected in the assessment year 2008-09 after extending due opportunity to the petitioner and the petitioner to avail such opportunity shall appear before the second respondent, without further notice, on 03.02.2023. Sd/- JUDGE nv "