TMI Blog2017 (12) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that in the gift deed value of the asset was mentioned at ₹ 10,00,000/- is of no consequence. That valuation is irrelevant and extraneous to the issue involved Section 55 (2) (b) (ii) does not require such value to be considered or even be relevant. In any case that value was relevant only for purpose of determination of stamp duty payable on the gift deed and not to determine capital gains. The finding of the Tribunal does not suffer from any infirmity. - Decided in favour of the assessee and against the revenue. Allowance of expenditure incurred in the business of share trading - Held that:- Expenditure incurred in trading shares; cost of improvement of the flat and; legal expenses incurred were claimed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee during the entire course of assessment proceedings in support of the said expenditure? (B) Whether, in the facts and circumstances of the case and in law, the learned ITAT erred in law and fact in adopting the cost of acquisition of flat at Mumbai as on 01.04.1981 at ₹ 1,05,02,677/- against ₹ 10,00,000/- that had been adopted by the AO on the basis of gift deed on the basis of gift deed dated 10.12.1999 ignoring the fact that the donor at the time of gift to the assessee declared the value of flat at ₹ 10 lacs? (C) Whether, in the facts and circumstances of the case and in law, the learned ITAT erred in law and fact in affirming the indexed cost of improvement of the flat at Mumbai at ₹ 15,80,464/- ig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closed the value of the flat in question, as on 1.4.1981 at ₹ 1,05,02,677/- on the basis of a valuation report prepared and submitted by the Kapoor Associate, an approved valuer. The Assessing Officer disbelieved the aforesaid valuation report submitted by the assessee in support of her claim (as to cost of acquisition of the flat property) on the reasoning that the assessee had not led any evidence in support of the valuation report, such as circle rate etc. The assessee carried the matter in appeal. The CIT (Appeals) allowed the appeal of the assessee and upon appeal by the revenue the Tribunal has affirmed the order of the CIT (Appeals). Then, in respect of the aforesaid flat that gave rise to the claim of capital gain, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purposes of sections 48 and 49, cost of acquisition (a)................ (b) in relation to any other capital asset,- (ii) where the capital asset became the property of the assessee by any of the modes specified in sub-section 1 of Section 49, and the capital asset became the property of the previous owner before the first day of April, 1981, means the cost of the capital asset to the previous owner or the fair market value of the asset on the first day of April, 1981, at the option of the assessee. From the plain reading of the aforesaid provision, it is clear that the legislature first contemplated a situation where the assessee may have come into ownership of an asset after 1.4.1981 from a previous owner who in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r should have been supported with further evidence in the shape of circle rate or exemplar sale deeds etc. There is nothing on record to doubt the correctness of the report or its contents. The Tribunal has found that in absence of any evidence to doubt the correctness of the approved valuer's report the same should have been accepted by the department. Once, the Act had given the option to the assessee and the assessee had acted in accordance thereof and exercised her option to rely on the fair market value of the assets as on 1.4.1981 which she duly supported with evidence, it was not open to the Assessing Officer to take a different view. Further, the fact that in the gift deed value of the asset was mentioned at ₹ 10, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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