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2013 (12) TMI 54 - AT - Income TaxCapital gain - sale of property - revision u/s 263 on the ground that AO and allowed the exemption u/s 54 wrongly - Held that:- The AO allowed the claim for deduction u/s 54 on the basis of unregistered purchase dded - The Assessee has not mentioned anything about capital gains or capital loss - There is also no claim for exemption u/s 54. The AO has also not dealt with any of the claim of the Assessee regarding sale of property at Somaji Guda, Hyderabad - Even if some documents were filed before the AO, for which no proof or acknowledgement has been filed with us, the AO has not even made a passing mention about sale of immovable property much less the capital gain/ loss arising therefrom or deduction u/s 54 - revision u/s 263 is valid - Decided against the assessee. CIT worked out the short term capital gains holding that the Assessee is not entitled to deduction u/s 54. He has not appreciated that for determining whether an asset is long term or short term capital asset, the period of `holding' the asset is relevant and not merely the date of registered conveyance - The period of holding of the asset by the Assessee has to be reassessed based on the facts of the case - The Assessee had incurred expenditure Rs. 17,10,000/- which may have to be added to the cost of acquisition of the asset - If this expenditure is taken into account there will not be any capital gains but only loss on sale. This aspect has not been considered by the CIT - The issue was restored for fresh decision. - Decided partly in favor of assessee.
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