2011 (9) TMI 1206 - AT - Income Tax

Summary

Issues involved: Cross appeals by Revenue and Assessee against order passed by ld. CIT(A) XII, Chennai for assessment year 2002-03.

Revenue's Appeal:
- Issue: Fixing fair market value as on 01.04.1981
- Revenue challenges fair market value fixed by ld. CIT(A)
- Decision based on earlier ITAT ruling to adopt fair market value at Rs. 1.00 lakhs
- Appeal disposed in favor of Revenue and Assessee

Assessee's Appeal:
- Issue 1: Reopening of assessment
- Assessee challenges reopening, citing all material facts were provided earlier
- Tribunal upholds reopening as no assessment order under section 143(3) was passed
- Assessee's appeal dismissed on this ground

- Issue 2: Index cost of building not allowed as deduction
- Assessee argues for index cost consideration in long term capital gain calculation
- Tribunal dismisses claim citing precedents and lack of merit

- Issue 3: Deduction under section 54 not allowed
- Assessee contends for deduction, but not supported by investment details
- Tribunal dismisses as issue not raised before ld. CIT(A)

- Issue 4: Change in assessee status from individual to HUF
- Assessee seeks quashing of assessment framed as individual
- Tribunal remits matter back to Assessing Officer for reconsideration post status change

Conclusion: Both appeals partly allowed for statistical purposes, with orders set aside for reassessment of certain issues.