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2012 (10) TMI 13 - ITAT, MUMBAICapital Gain – Indexed cost of acquisition under family arrangement – Which year is used for indexation - PY in which the previous owner first held the asset or the year in which the asset received by assessee as per family arrangement – Held that:- Following the decision in case of Manjula J. Shah (2009 (10) TMI 646 - ITAT MUMBAI) for the purpose of computing long term capital gains arising from the transfer of a capital asset which had become property of the assessee under gift, the first year in which the capital asset was held by the assessee has to be determined to work out the indexed cost of acquisition as envisaged in Explanation(iii) to section 48 after taking into account the period for which the said capital asset was held by the previous owner. Appeal decides in favour of assessee Capital Gain - Exemption u/s 54 on purchase of car parking space along with flat – Held that:- As the car parking in a society cannot be separately purchase but it is attached with the flat in the society. Therefore, when any flat in the society is purchased along with car parking, then the investment in the flat and car parking will be considered as investment in the residential house. Therefore same is eligible for exemption u/s 54. Appeal decides in favour of assessee Capital Gain – Whether Cost of improvement along with value of flat eligible for exemption u/s 54 - Assessee claimed exemption u/s 54 on the cost of purchase of new flat, car parking and cost of improvement in the new flat – Held that:- As the assessee has duly recorded all the expenditure in the books of account and the payments were made by account payee cheque. Therefore Assessee is entitled to cost of improvement except the air-conditioning plant which cannot he treated as integral part of the flat. Appeal decides partly in favour of assessee Transaction in shares, held as business income or capital gain – Held that:- As concluded from fact the motive of the assessee is not to earn the profit at the earliest possible opportunity available. When the holding period of the shares giving rise to short term capital gain in the majority of cases is more than three months, than it is clear that the intention of the assessee was to earn the gain due to appreciation of value of capital assets. Claim was accepted in the earlier years by the revenue and treated the surplus from sale and purchase of shares as capital gain. Therefore, principle of uniformity and consistency has to be maintained when the facts and circumstances are identical. Appeal decides in favour of assessee
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