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TMI Blog2015 (5) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... J. Shah [ 2011 (10) TMI 406 - BOMBAY HIGH COURT] had an occasion to consider an identical issue. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to compute the indexed cost of acquisition from 01.04.1981 in view. Appeal of the assessee is allowed. - ITA No.2075/Mds/2014 - - - Dated:- 15-5-2015 - SHRI N.R.S. GANESAN R AND SHRI A. MOHAN ALANKAMONY, JJ. Appellant by : None Respondent by : Shri N. Madhavan, JCIT ORDER N.R.S. GANESAN, J. This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) VII, Chennai, dated 09.05.2014 and pertains to assessment year 2006-07. The only issue arises for consideration is with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 75 cents of land through settlement deed only from 23.01.2004 which falls in the financial year 2003-04. Therefore, for the purpose of indexation, the cost of the asset has to be adopted on 01.04.1981 assumes significant and not for indexed cost of acquisition. This distinction is important for working of the capital gain. 5. We have heard the Ld. D.R. and gone through the written submission filed by the assessee and material available on record. It is not in dispute that the assessee obtained 75 cents of land from his mother by means of settlement deed dated 23.01.2004. The assessee also sold the land during the year under consideration and claimed capital gain by adopting the value as on 01.04.1981. The Assessing Officer disallowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital asset from 29.1.1993, then, naturally in determining the indexed cost of acquisition under Section 48 of the Act, the assessee must be treated to have held the asset from 29/1/1993 and accordingly the cost inflation index for 1992-93 would be applicable in determining the indexed cost of acquisition. 18. If the argument of the revenue that the deeming fiction contained in Explanation 1(i)(b) to Section 2(42A) of the Act cannot be applied in computing the capital gains under Section 48 of the Act is accepted, then, the assessee would not be liable for long term capital gains tax, because it is only by applying the deemed fiction contained in Explanation 1(i)(b) to Section 2(42A) and Section 49(1)(ii) of the Act, the assessee is deem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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