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2022 (5) TMI 887 - AT - Income TaxCapital gain computation - indexed cost of acquisition - correct date and year for the computing indexation - declining the benefit of indexation w.e.f 1997 - benefit of indexation for the purpose of computing Long Term Capital Gain arising from sale of a residential flat from the year of registration of the flat in 2003 and not from the year of execution of sale agreement and taking possession of the flat by the appellant in the year 1997- HELD THAT:- Benefit of indexation was declined on the ground that the possession was given to the original owner by Ghaziabad Development Authority (“GDA”) vide letter dated 25.12.1997. However, flat was registered in the name of the assessee in the year 2003 only, after making balance installments. The case of the assessee is that the house was allotted to the original owner and possession was given to the original owner by GDA. The original owner by way of Agreement to Sale and registered Power of Attorney transferred the ownership in favour of the assessee, and handed over the possession to the assessee way back in the year 1997. After obtaining the possession, the assessee had installed electric connection provided by the Electricity Department and has been paying house tax to the Ghaziabad Municipal Committee. Assessee has proved his possession of the property which is evident from the installation of electricity connection in his name and house tax charged by the local tax authority. Therefore, the Ld.CIT(A) under these undisputed facts, ought to have taken a liberal approach for granting benefit of indexation as requested by the assessee. I therefore, set aside the impugned order on this issue and direct the AO to give benefit of indexation to the assessee as per law treating him in the possession of the flat since 1997. Ground raised by the assessee is allowed for statistical purposes.
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