2013 (12) TMI 1704 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A)-XIX, Kolkata regarding computation of Long Term Capital Gains (LTCG) u/s. 143(3) of the Income-tax Act, 1961 for Assessment Year 2006-07.

Summary:
The appeal was filed by the assessee against the order of CIT(A)-XIX, Kolkata regarding the computation of Long Term Capital Gains (LTCG) u/s. 143(3) of the Income-tax Act, 1961 for Assessment Year 2006-07. The assessee sold one third share of a house property and declared LTCG. The AO computed LTCG based on the market value of the property and the cost of acquisition. The assessee contested the adoption of the cost of acquisition as on 01.04.1981. The Tribunal, after considering the valuation report submitted by the assessee, set aside the issue to the file of AO for recomputation of LTCG based on the fair market value of the property as on 01.04.1981. The appeal of the assessee was allowed for statistical purposes.

The Tribunal noted that the assessee had sold one third share of a house property and declared LTCG. The AO computed LTCG based on the market value of the property and the cost of acquisition. The assessee contested the adoption of the cost of acquisition as on 01.04.1981, claiming a different fair market value. The Tribunal considered the valuation report submitted by the assessee valuing the property as on 01.04.1981 at a different amount. As the assessee had produced a valuation report from a registered valuer, the Tribunal directed the AO to compute the LTCG based on the fair market value of the property as on 01.04.1981, considering the valuation report provided by the assessee.

The Tribunal found that the AO should have considered the fair market value of the property as on 01.04.1981, as submitted by the assessee through a valuation report. The Tribunal set aside the issue to the file of AO for recomputation of LTCG based on the fair market value of the property as on 01.04.1981. The appeal of the assessee was allowed for statistical purposes.

In conclusion, the Tribunal allowed the appeal of the assessee for statistical purposes and directed the AO to recomputed the LTCG based on the fair market value of the property as on 01.04.1981, as provided in the valuation report submitted by the assessee. The order was pronounced in the open court on 19th Dec., 2013.