TMI Blog2014 (4) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... ersion of rights of lessee in the property from lease hold right into free hold only results in improvement of his/her rights over property and it would not have any effect on taxability of capital gains from such property which is related to period over which property is held - the property has been held by M/s. Tool Craft, on lease hold basis since 1974 and the assessee has acquired the partnership firm in the year 1978 to which the title over the property in question has been improvised by conferring free hold rights, the year of acquisition of the said property is to be held as 1974 and not the year 1992 – thus, the assessee is entitled for the indexed cost of acquisition since 1981 as claimed – Decided in favour of Assessee. Inclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the AO while giving effect to the order of the Tribunal providing relief to the assessee in the assessment years 2004-05, 2005- 06, 2006-07 and 2007-08. Since the issues agitated in the said grounds are consequential to the earlier disallowances and the same are settled as of now, the AO is directed to take cognizance of the matter and accordingly allow the claim after considering the said orders giving effect to the decisions of the Tribunal. Grounds No 1 2 are allowed for statistical purpose. 3. In Ground No. 3, the assessee has agitated the action of the Ld.CIT(A) in confirming the decision of the AO in adopting the date of acquisition of the land as 31.01.1992 against the claim of the assessee i.e., 07.08.1974 for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hence the AO was correct in adopting the indexed cost of acquisition on the basis of the year 1991-92. Aggrieved by the impugned decision, the assessee has raised this ground in the appeal before us. 3.2 Having heard both the sides and perused the material on record, it is pertinent to mention that vide agreement dated 07.08.1974, KIADB has given the impugned property to M/s. Tool Craft on lease for term of 11 years commencing from 1973 for a consideration of Rs.31,600/- and on an agreed yearly rent as mentioned in the said agreement. Para 7 of the agreement provides that at the end of 11 years of the lease term, the total amount of rent paid by the lessee for the period of lease shall be adjusted towards balance of the value of the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is entitled for the indexed cost of acquisition since 1981 as claimed. We direct and order accordingly. Resultantly, Ground No. 3 is allowed. 4. In Ground No. 4, the assessee has agitated the action of the Ld.CIT(A) in confirming the decision of the AO in charging interest u/s 234A of the Act amounting to Rs.1,33,38,104/- by including the charging of interest on the self assessed tax paid of Rs.8,97,08,359/- before filing the return of income. 4.1 Briefly stated, the return for the A.Y. 2008-09 was not filed by the assessee up to the due date of filing the return of income i.e., 30.09.2008. The assessee after receiving a notice dated 13.04.2010 u/s 153A of the Income-tax Act, filed the return of income u/s 153A on 07.05.2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A is compensatory and not penal in nature. The Tribunal, in the case of Sachin Vs DCIT 13 ITR (Trib) 161 has held that interest under section 234A should be charged after giving credit of tax already paid. Also, in the case of Epari Sadasiva Rao (HUF) Vs ACIT 18 ITR (Trib) 569, the Tribunal has held that interest under section 234A is only to be charged till date of payment of self-assessment tax, even though return has been filed later. After considering the facts in toto and appraising the position of law on this issue, we direct the AO to give credit of self assessed tax paid before filing the return of income and thereby reduce the same for the purpose of charging interest u/s 234A of the Act. Accordingly, Ground No 4 is allowed. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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