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TMI Blog2012 (3) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... gain. 2. On the facts and on the circumstances of the case the Ld. CIT(A) has erred in deleting the addition made by the AO by disallowing assumption of Rs. 4770000/- claim u/s 54 of IT Act 1961." 3. The first issue for consideration relates to deletion of addition of Rs. 8,18,317/- made by the Assessing Officer on account of long term capital gain. The facts of the case stated in brief are that the assessee sold property at 25, Aradhana Colony, Sector-13, R.K. Puram, New Delhi. Against the assessee's 50% share of Rs. 75,00,000/-, the assessee claimed index cost of acquisition at Rs. 13,32,980/-. It was submitted before the AO that the assessee had inherited a share in the property on the death of his wife Smt. Prabha Chandra who died ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Before the learned CIT(A), it was submitted by the assessee that under sec. 49(1) of the Income-tax Act, 1961, when a capital asset is acquired by an assessee by gift, inheritance, partition of an HUF, or other specified mode, the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner acquired it. As per sec. 48, the cost of acquisition of the capital asset will be indexed as per the cost inflation in case in the first year in which the asset was held by the assessee or of the year beginning on 1.4.1981, whichever is later. Under sec. 55(2)(b)(ii), where a capital asset becomes the property of the assessee by any of the modes specified in sec. 49(1) and the capital asset was acquired by the previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 6. The learned CIT(A) relying on the decision of Special Bench in the case of Manjula J. Shah (supra), held that for the purpose of computing long term capital gains, the first year in which the capital asset was held by the assessee has to be determined to work out the indexed cost of acquisition after taking into account the period for which capital asset was held by the previous owner. He, therefore, held that the indexed cost of acquisition of the capital asset acquired by the assessee through inheritance has to be computed with reference to the year in which the previous owner first held the asset. He, therefore, decided the first issue in favour of the assessee. As regards the second ground, the learned CIT(A) held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court in the case of Rajesh Kumar Jalan (supra) and Punjab & Haryana High Court in the case of CIT v. Ms. Jagriti Aggarwal [2011] 203 Taxman 203/15 taxmann.com 146. 8. We have heard both the parties and gone through the material available on record. There is no dispute about the facts that the assessee became owner of the property on the death of his wife who acquired property from her mother. The said property was acquired by her mother before 1.4.1981. Under sec. 49(1) where the capital asset becomes the property of the assessee under the modes specified therein, the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it as increased by the cost of any improvement of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the return. Therefore, such provision was not an independent provision, but relates to the time contemplated under sub-sec.(1) of sec. 139. Therefore, sub-sec.(4) has to be read along with sub-sec.(1). Therefore, the due date for furnishing the return of income under sec. 139(1) of the Act was subject to extended period provided under sec.139(4) of the Act. Similar view was taken by Hon'ble Guwahati High Court in the case of Rajesh Kumar Jalan (supra). During the course of hearing the learned Sr. DR could not cite a contrary decision to what has been held by the Hon'ble Guwahati High Court and Hon'ble Punjab & Haryana High Court. Respectfully following the decision of Hon'ble Punjab & Haryana High Court, it is held that sin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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