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TMI Blog2014 (4) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ing right to receive the constructed property - the assessees right to receive the fourth/fifth floor flats have been accrued to them on 26.09.1986 itself i.e., the original date of agreement - the authorities below are not justified in adopting the indexation cost from the year 2003 on the ground that transfer has taken place in the said year - thus, both the assessees are entitled for claiming the indexed cost of acquisition from the year 1986 onwards – the order of the CIT(A) set aside – Decided in favour of Assessee. - ITA No. 2605/Mum/2011, ITA No. 3111/Mum/2012 - - - Dated:- 7-3-2014 - Shri Rajendra And Dr. S. T. M. Pavalan,JJ. For the Petitioner : Shri Chetan A. Karia For the Respondent : Shri Sanjeev Jain ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garden of not less than 400 sq.ft and the other two flats on the second and third floors respectively along with two car parking spaces for each flat, the three flats together having a total super built up area of 415 sq.ft approximately, would be given to the vendors in this regard. That apart, the purchaser was to pay each of the vendors on or before the execution of the said agreement, a sum of Rs.32,500/- aggregating to Rs.97,500/-, the receipt of which was acknowledged by the vendors. Further, the market value of the said flats was noted to be at Rs.650/- per sq.ft for super built up area at the material point of time and thus the market value of the constructed super built up area to be given by the purchaser to the vendors was accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onditions of the agreement dated 26.09.1986 were remained unaltered. The partial modification as above was to be recorded by a deed of modification signed between the vendors and the developer. Thereafter, as per the version of Shri O.P. Sharma, the vendors were called upon to take possession of the respective flats, whereas the vendors disputed such claim of the developer stating that the possession/delivery of the flats was not given to the vendors even in the year 2006. Certain correspondence was exchanged in this regard between the vendors, including the assessees, on one side and the developer on the other side, during the months of June and July, 2006. The correspondence refers to negotiations between the vendors and the developer for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order u/s. 143(3) observed that the assessee, Mrs.Ranjani K Iyer got her right for the flat in the fifth floor i.e. impugned property only in July, 2003, owing to the modification agreement referred above and therefore her rights over the flat sold in the fifth floor commence from July, 2003 only. Accordingly, the AO had adopted the cost inflation index from the year 2003 for the purpose of computing LTCG arising in the impugned transaction. On appeal in the case of the assessee, Mrs. Rajani K Iyer, the Ld.CIT(A) confirmed the order of the AO. In the case of the assessee, Shri Ravikumar A. Krishnamurthy, the Ld.CIT passed an order u/s 263 of the Income Tax Act against the assessment order of the AO accepting the claim of Shri Rav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e second/third floor flats and the subsequent modification thereof allowing the assessees to receive the flats on fourth/fifth floor instead of second/third floor flats will only substitute the assessee's existing right to receive the constructed property. Accordingly, the assessees right to receive the fourth/fifth floor flats have been accrued to them on 26.09.1986 itself i.e., the original date of agreement. In view of that matter, the authorities below are not justified in adopting the indexation cost from the year 2003 on the ground that transfer has taken place in the said year. Therefore, in our considered view, both the assessees are entitled for claiming the indexed cost of acquisition from the year 1986 onwards. Accordingly, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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