9911796707
TMI Blog2020 (3) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... s of a misc. application filed by the assessee, the appeal order was recalled vide order dated 15th June 2018, in M.A. no.307/Mum./ 2016. This is how the present appeal came up for hearing before this Bench. 2. The assessee has raised three effective grounds in this appeal. At the outset, the assessee appearing in person has expressed his intention not to contest ground no.1(a). Accordingly, ground no.1(a) is dismissed as not pressed. 3. In ground no.1(b), the assessee has raised the issue of computation of cost inflation index in reverse manner while computing long term capital gain on transfer of tenancy rights. 4. Brief facts are, the assessee is an individual and advocate by profession. For the assessment year under dispute, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire sale consideration of Rs. 1,83,33,334, to tax as long term capital gain. The assessee challenged the aforesaid decision of the Assessing Officer before learned Commissioner (Appeals). As regards assessee's claim of non-taxability of the gain derived from transfer of tenancy right, learned Commissioner (Appeals) concurred with the view expressed by the Assessing Officer. As regards assessee's claim of cost of acquisition, learned Commissioner (Appeals) referring to the provisions of section 55(2) r/w section 49(1) of the Act, held that indexed cost of acquisition would be allowable to the assessee for computing long term capital gain. He observed, since the assessee has exercised his option to substitute the fair market value as o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions in the light of the decisions relied upon and perused the material on record. As could be seen from the facts on record, initially, the assessee had claimed that the gain derived from transfer of tenancy right is not at all taxable. However, before us, the assessee has expressed his intention not to contest the aforesaid issue. Therefore, in the present appeal, we are not concerned with this issue. The only other issue which survives for adjudication is, assessee's claim of reverse indexation benefit with regard to cost of acquisition as on 1st April 1981. As could be seen from the facts on record, the Assessing Officer while computing long term capital gain on transfer of tenancy right has not allowed the benefit of cost of acquisiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e indexation in the facts of that case was accepted by both the assessee and the Revenue which is not the fact in the present case. Further, in case of Jahanganj Cold Storage (supra), the facts would so that the FMV of the asset as on 1st April 1981, was not available. Therefore, reverse indexation method was applied. In any case of the matter, the Tribunal, Ahmedabad Special Bench, in Vijay R. Rathore v/s ITO, [2007] 107 TTJ (Ahd.) 593 (SB), held that FMV as on 1st April 1981, has to be taken as cost of acquisition after allowing benefit of indexation. In the facts of the present case, the FMV of the asset transferred as on 1st April 1981 is available as per the valuation report of the registered valuer of the assessee. Therefore, when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authorities submitted, entire expenditure debited to the Profit & Loss Account was for the purpose of accounting professional income and no part of it is attributable towards earning of exempt income. He submitted, when there is no nexus between the expenditure incurred and exempt income earned, no notional disallowance can be made under section 14A r/w rule 8D. In support of such contention, he relied upon the following decisions:- i) Justice Sam P. Bharucha v/s ACIT, [2012] 53 SOT 192 (Mum.) (URO); and ii) CIT v/s Glenmark Pharmaceuticals Ltd., [2013] 351 ITR 359 (Bom.). 12. We have considered rival submissions in the light of the decisions relied upon and perused the material on record. Undisputedly, the assessee is a professional ..... X X X X Extracts X X X X X X X X Extracts X X X X
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