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TMI Blog2020 (11) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of indexation property which was subject matter of transfer was purchased by the father and mother of assessee under a Sale Deed dated 15.9.1980. The property was given by way of gift by the assessee on 15.3.2006 Plea of assessee that since property was acquired in the year 1980 and since as per the provisions of Explanation (1) to section 2(42A) and the provisions of section 49(1) of the Act, if the property is acquired by way of gift, then the period of holding as well as the date of acquisition of the property should be reckoned from the date on which the predecessor of the assessee acquired the property. These submissions are contained in of the CIT(A) s order. Though the submissions have been extracted, the CIT(Appeals) has, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when property is acquired by way of inheritance and when the same is acquired by way of gift, cannot be different. We are, therefore, of the view that the assessee should be allowed the benefit of indexation from AY 198-81. We hold and direct accordingly and allow the relevant grounds of appeal. - Shri N.V. Vasudevan, Vice President And Shri A K Garodia, Accountant Member For the Appellant : Smt. Suman Lunkar, CA For the Respondent : Smt. R. Premi, Jt.CIT(DR)(ITAT), Bengaluru ORDER PER N.V. VASUDEVAN, VICE PRESIDENT This appeal by the assessee is against the order dated 31.12.2018 of the CIT(Appeals), Bengaluru-2, Bengaluru relating to assessment year 2013-14. 2. This appeal was originally heard and decided by this Tribunal vide order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide order dated 14.08.2020 allowed the MP on the above issue observing as follows:- 6. We have considered the submissions of the ld. counsel for the assessee and are of the view that there is a mistake apparent on the face of record inasmuch as even after allowing deduction u/s 54 of the Act, there would still be long term capital gain that would be chargeable to tax and therefore the question of period from which indexation benefit should be allowed to the assessee ought to have been adjudicated. We accordingly recall the order of the Tribunal dated 30.12.2019 for the limited purpose of examining the question with reference to period for which the assessee should be allowed the benefit of indexation while computing the long term capital g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered and decided by the Hon ble Bombay High Court in the case of CIT v. Manjula J. Shah, 355 ITR 474 (Bom) . The Court held that legislature by introducing deeming fiction seeks to tax gains arising on transfer of a capital asset acquired under a gift or will and, capital gain under section 48 has to be computed by applying deemed fiction and that fiction contained in Explanation 1(i)(b) to section 2(42A) has to be applied in determining indexed cost of acquisition under section 48 of Act also. Therefore, while computing capital gains arising on transfer of a capital asset acquired by assessee under a gift or will, indexed cost of acquisition has to be computed with reference to year in which previous owner first held asset and not year in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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