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2014 (5) TMI 315 - AT - Income TaxComputation of LTCG – Whether the value of surrender of tenancy right is to be considered as cost of acquisition of house property - Cost of the property at the time of acquisition not considered – Held that:- The assessee is an old tenant in a building, where she was residing with her son in the flat - Once the cost of acquisition is determinable, the benefit of such acquisition has to be given while computing the tax on capital gain - the tenancy right got converted into acquisition of a flat, when the assessee must have got the possession of new flat constructed by the builder - Thus, the market value of the flat as on the date of its possession would be the cost of its acquisition – the cost is to be deductible while computing income by way of capital gains, whether long term capital gain - This is as the holding period of the capital assets, being the residential flat, would only commence from the date the assessee is put in possession after its completion – thus, the order of the CIT(A) is set aside and the matter is remitted back to the AO for fresh adjudication – AO was directed to take the value of the flat for the purpose of cost of acquisition from the year in which the assessee got the actual possession of the flat and then only he shall compute the capital gain – Decided partly in favour of Assessee.
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