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2015 (4) TMI 47 - AT - Income TaxComputation of taxable Long Term Capital Gain of HUF - Lower Authorities taking sale consideration in the hands of the assessee at ₹ 13,33,333/- when in fact the Sale Deed specifically mentions that he gets the sale consideration of ₹ 4,00,000/- only, and therefore, the calculation of the taxable capital gain of ₹ 11,71,597/- which is far much more than the actual sale consideration of ₹ 4,00,000/- is patently bad in law - whether the Revenue Authorities were correct in adopting the index price in A.Y.2003-04 instead of 1.4.1981? Held that:- On perusal of the sale deed stated to be registered on 27th of March, 2009 we have noted that the executors of the sale deed were the family members of the Assessee. Meaning thereby the Assessee was not the only seller of the property but the property in question was sold jointly by all the members of the family. The property in question was sold for a consideration of ₹ 80 lac. As per section 49 where the capital asset became the property of the Assessee by succession or inheritance then the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property had acquired it. In this case, the Assessee, Sri Harish Babulal had acquired this property by inheritance on death of his father Sri Babulal Popatlal who expired on 19th December, 1961. We, therefore, hereby hold that if the dates are correct than the index cost of acquisition is required to be adopted as on 1.4.1981, i.e., 100 instead of 463 as alleged by the AO. Since, the family tree was not disclosed in the assessment order therefore, at this stage of second appeal it is not clear that whether the dates as mentioned were verified by the AO or not. The only reference which we have noticed is in paragraphs 3, 4 & 5 of the sale deed. Therefore, the AO is required to investigate this issue in the light of the dates mentioned in the said registered sale deed, especially, the date of death of the father of the Assessee. If it is found to be prior to 1.4.1981 then naturally the year of inheritance shall be held as 1.4.1981 for the purpose of fixation of cost indexation. With these remarks this issue raised is restored back for denovo adjudication. - Decided in favour of assessee for statistical purpose Cost of acquisition - Held that:- Assessee got his share in the property after the death of his father and later on after the death of Rohit Babulal his already existed share was enhanced or increased by the death of Sri Rohit Babulal. So the Assessee is required to place on record the correct factual position in respect of the property which was inherited by the Assessee on death of his father and the portion of the property which he received on the death of Sri Rohit Babulal. After verifying this fact, the AO shall examine the datas referred in the valuation report so as to decide the correctness of the value of the property for the purpose of applying the value in the formula of cost inflation index. Since certain facts are yet to be determined as discussed by us therefore, the additional ground of assessee also allowed for the statistical purpose.
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