TMI Blog2017 (2) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer holds that the sale gives rise to taxability under section 48 as long term capital gains, the matter ends there. It was no longer open to him to examine the details about cost of acquisition and cost of improvement which were examined and accepted in the first round. In considered view, the Assessing Officer exceeded his brief in this i.e. second round of proceedings. In view of the above discussions, vacate the Assessing Officer’s order on these points and, therefore, delete the impugned addition. The assessee gets the relief accordingly. - ITA No.2678/Ahd/2011 - - - Dated:- 17-2-2017 - Pramod Kumar AM For The Appellant : Sakar Sharma For The Respondent : Pradip Kumar Majumdar ORDER 1. By way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, the relevant material facts are like this. During the relevant previous year, the assessee sold a property for ₹ 23,16,400/-. The assessee claimed the indexed cost of acquisition at ₹ 8,43,936/- and indexed cost of improvement at ₹ 15,38,087/-. Accordingly, long term capital loss was computed at ₹ 65,650/-. The Assessing Officer called for various details and examined the matter. While he had no issues about the claims made by the assessee with respect to expenditure etc., he rejected the claim of long term capital gain and treated the sale as giving rise to short term capital gain under section 50A. While doing so, he observed as follows :- Submission made by the assessee has duly been considered. Rebut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s short term capital gain. As assessee has claimed long term capital loss of ₹ 65,650/- derived from said transaction instead of showing short term capital gain of ₹ 21,70,278/-, the claim of long term capital loss of ₹ 65,650/- is allowable to be disallowed and also further addition of ₹ 21,70,278/- is liable to be added in the total income of the assessee as short term capital gain. In view of the above discussion made an amount of ₹ 21,70,278/- is added to the total income of the assessee after disallowing the claim of long term capital loss of ₹ 65,650/-. Therefore, total addition will be ₹ 22,35,928/- (Rs.21,70,278 + 65,650). Penalty proceedings u/s. 271(l)(c) is separately initiated. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome under the Income-tax Act or whether any such depreciation has been duly allowed in any of the assessment years. The assessee is free to submit the necessary papers on which he may rely. If the AO finds that the assessee has not claimed and allowed depreciation in any of the preceding assessment years on the assets sold, the AO is directed to work out the capital gain as per the provisions of section 48 of the Act. Thus, this ground is allowed for statistical purpose. 4. That s how Assessing Officer came to be in seisin of the matter once again. The Assessing Officer did hold that depreciation was not allowed on this property, and, accordingly, section 50A has no application in the matter. On this aspect, his conclusion was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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