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2018 (3) TMI 374 - AT - Income TaxCalculation of capital gain - adoption of cost of asset - Net sale consideration - Held that:- A perusal of computation of income made by the ld.AO on page no.8 of the assessment order would indicate that the ld.AO took net sale consideration falling to the share of assessee at ₹ 59,14,747/-. The indexed cost of acquisition in the hands of assessee was computed at ₹ 29,42,376/-. Thus, net LTCG worked out in the hands of assessee is of ₹ 29,72,370/- i.e. (Rs.59,14,747 minus ₹ 29,42,376). The ld.AO granted benefit of set off as under: Capital gain x cost of new asset /Net sale consideration The cost of new asset was taken at ₹ 30 lacs only and in this, set off was granted upto ₹ 15,07,606/-. The balance i.e. total capital gain : ₹ 29,72,370 minus ₹ 15,07,606 = ₹ 14,64,764/- has been taxed at the rate of 20%. I allow this appeal and direct the AO to take cost of new asset at ₹ 70 lakhs instead of ₹ 30 lakhs and calculate the amount of capital gain, if any. In other words, there will be no capital gain for tax in the hands of assessee.
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