TMI Blog2017 (9) TMI 1837X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of cost of improvement shall be allowed from the date the previous owner acquired that asset. Further, Hon ble Delhi High Court in case of Arun Shungloo Trust [ 2012 (2) TMI 259 - DELHI HIGH COURT] has also held that benefit of indexation cost of improvement by previous owners in cases covered by section 49 would be allowed. Also in Smt. Daisy Devaiah [ 2014 (11) TMI 944 - KARNATAKA HIGH COURT] has held that when an asset is acquired by way of inheritance, cost of acquisition of asset should be calculated on basis of cost of acquisition by previous owner and said cost of acquisition has to be calculated on basis of indexed cost of acquisition as provided in Explanation (3) to section 48. We find that the present issue is squa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mere human error and it can happen in every sphere of life. Therefore, this error is not so important which can lead to disallowance of entire loss - See E NET INFOWAYS P. LTD. [ 2012 (12) TMI 1186 - ITAT DELHI] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done this transfer during the market hours and the volume of these transfers is also huge. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made on account of profit transferred due to client code changes in spite of the fact that the assessee has not substantiated any concrete reason for these type of transfers except human error. 3. We begin with the 1st ground of appeal. In a nutshell, the facts are that the assessee had declared Long Term Capital Gains (LTCG) of ₹ 6,01,238/- on sale of diamonds. These diamonds were received as gift on 10.09.2009 from Ms. Chetan Merchant. The donor, Ms. Merchant had acquired these diamonds prior to 1st April, 1981. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the cost of acquisition stipulated in section 49 means the cost for which the previous owner had acquired the property, the term held by the assessee should be interpreted to include the period during which the property was held by the previous owner. Hence, indexation of cost of improvement shall be allowed from the date the previous owner acquired that asset. Further, Hon ble Delhi High Court in case of Arun Shungloo Trust (supra) has also held that benefit of indexation cost of improvement by previous owners in cases covered by section 49 would be allowed. Also in Smt. Daisy Devaiah (supra), the Hon ble Karnataka High Court has held that when an asset is acquired by way of inheritance, cost of acquisition of asset should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee has systematically transferred the gains of ₹ 1,19,28,273/- to other persons on all such trades where the client codes were modified in order to show the beneficiary as someone other than the assessee. Therefore, the Ld. DR pleads that the addition of ₹ 1,19,28,273/- made by the AO be confirmed. 10. On the other hand, the Ld. counsel of the assessee supports the order passed by the Ld. CIT(A) and relies on the order of the Tribunal in the case of M/s Sambhavnath Investment (supra), E. Net Infoways P. Ltd. (supra), ITO vs. M/s Pat Commodity Services (P) Ltd. (ITA No. 3498 and 3499/2012) and ACIT vs. Kunvarji Finance (P) Ltd. (2015) 170 TTJ (Ahd) 345. 11. We have heard the rival submissions and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unched wrong and thereafter it has been corrected by the broker. There is no illegality noticed in this change of client code. This is a mere human error and it can happen in every sphere of life. Therefore, this error is not so important which can lead to disallowance of entire loss. Further in M/s Pat Commodity Services P. Ltd. (supra) the Tribunal held: We notice that the assessee has offered explanations as to why it carried out the transactions in its own code, i.e. since the timing of entering the transactions is crucial in the online trading, the staffs of the assessee company found it convenient to punch its own code. Further, we notice that the fact that the assessee has changed the code to the concerned clien ..... X X X X Extracts X X X X X X X X Extracts X X X X
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