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2016 (6) TMI 1112 - AT - Income TaxLevy of penalty u/s.271(1)(c) - Held that:- As the quantum appeal is still pending before the Commissioner of Income-tax(Appeals), the levy of penalty is also remitted back to the file of the Commissioner of Incometax( Appeals) for adjudicating the same after deciding the quantum addition before him. Entitlement to exemption u/s 54 - Held that:- We hold that in the present case, the assessee inherited the property on 21.5.2002. The said property was purchased by the assessee’s mother on 12.4.1960. After the death of the assessee’s mother, the property was inherited to the assessee along with other co-owners. Accordingly, the cost of indexation to be applied as on 1.4.1981, after fixing the value of the asset as on 1.4.1981 and it cannot be said that the assessee acquired property under dispute on 21.5.2002 on the death of the assessee’s mother so as to compute the capital gains. In other words, capital gains has to be assessed as long term capital gains by fixing the cost of asset as on 1.4.1981 and thereafter applying the cost of inflation index in terms of sec.49(1)(iii)(a) of the Act. Same view was taken in the case of CIT vs. Manjula J. Shah (2011 (10) TMI 406 - BOMBAY HIGH COURT ). Consequently, the assessee is entitled to exemption u/s.54 of the Act. Accordingly, this appeal of the assessee is allowed.
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