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TMI Blog2012 (9) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... ty itself to assessee certifying payment of sum of Rs.7,75,305/- during the period from 30.04.1996 to 01.06.2000 by way of installment and also certificate from Engineer contractors certifying improvement cost of 3,10,000/- and other related expenses Even going by common sense it is clear that no flat in BTM Layout in 2002 was available at the rate of Rs.300/- adopted by AO. In view of adoption of aforesaid cost, CIT(A) rightly held that indexed cost of acquisition, improvement and registration far exceeds Rs.19.80 lakhs resulting in taxable LTCG at NIL - Decided against Revenue - ITA No.512/Bang/2011 - - - Dated:- 29-6-2012 - SHRI N. BARATHVAJA SANKAR, AND SHRI N.V.VASUDEVAN, JJ. Appellant by: Shri A.Sundar Rajan, JCIT. Respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopted in the assessment order by that claimed by the assessee. He also erred in directing the AO to adopt the cost of improvement as claimed by the assessee. 2. The learned CIT is not justified in law by taking the cost of acquisition declared by the assessee on the basis of following opinions (a) For the purpose of registration, as per the guidance value, the value was shown at Rs.3,06,410/-in the registered sale deed. (b )The Society itself confirmed in its letter to the father of the assessee that it has received Rs.7, 75,305/- (c) even going by common sense it is clear that no flat in the locality could have been available at the cost adopted by the A.O. 3. The learned CIT is tailed to appreciate the fact that the society ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions of the assessee and going through the assessment records, recorded the following emerging facts: 4. After considering the above submissions of the appellant and after going through the assessment records the following facts have emerged: i) The appellant s father Mr.Shantha Kumar was allotted a flat at Vijaya Enclave measuring 1,007 sq.ft. super built-up area (769 sq.ft. of carpet area by M/s.Vijaya Bank Employees Housing Cooperative Society. ii) Mr.Shantha Kumar s daughter Mrs.Madhu SHantha Kumar was allowed to buy the flat as per the byelaws of M/s.Vijaya Bank Employees Housing Cooperative Society. iii) Mrs.Madhu Shantha Kumar had reimbursed the payments made by her father and further payment was made by her to the Soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 890/- was arrived at Rs.8,74,175/-. [A] - Similarly taking inflation index for 07-08 of 551, indexed cost of acquisition for investment of Rs.3,62,730/- in FY 1997-98 was arrived at Rs.6,03,819/- [B] - Taking inflation index of FY 07-08 of 551, indexed cost of acquisition for investment in FY 98-99 of Rs.50,350/- was arrived at Rs.71,318/- [C] - Indexed cost of improvement of Rs.3,10,000/- made in FY 00-01 was arrived at Rs.4,20,714/- [D] Finally on registration cost incurred of Rs.17,650/- in Fy 02-03, the indexed cost was taken at 21,756/- [E] A+B+C+D+E = Rs. 19,91,784/- After considering the above emerging facts, the CIT(A) gave direction to the AO to treat long term capital gains as nil . While giving the direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion including proportionate share of the land cost and to adopt Rs.3,10,000 / - as cost of improvement as it is evidenced by written confirmation of the engineering contractor as also self certification of the appellant. Apart from that, the cost of registration expenses of Rs.17,650/- can be seen from the sale deed document wherein the stamp paper cost itself is Rs.17,650/-. In addition to that they incurred a further sum, of RS.8,250/- towards registration expenses as can be seen from the backside of the first page of the sale deed which was omitted to be considered by the appellant since indexed cost was far exceeding 19.80 lakhs even without this sum of Rs.8,250j-. All the supporting evidences are in the file of the AO as the AO had br ..... X X X X Extracts X X X X X X X X Extracts X X X X
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