TMI Blog2021 (11) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee for more than three years as computed from the date of allotment and accordingly, the asset transferred would be a long term capital asset thereby resulting in long term capital gains in the instant case. Assessee would also be eligible for benefit of indexation. Having held that the asset transferred is a long term capital asset, the next question that arises for our consideration is whether the indexation benefit for cost of acquisition should be allowed to the assessee, based on the payments made in instalments and applying the cost inflation index in the relevant year of payment. We find that assessee itself had claimed indexation benefit by applying the cost inflation index in the year of payment of instalments. Hence, there is no dispute that arises in this regard. We direct the ld. AO to accept long term capital gains returned by the assessee on sale of this flat and delete the addition made on account of capital gains made in this regard. Treatment of repairs and renovation expenses incurred by the assessee on the leased premises - HELD THAT:- From the perusal of each of those bills which are in great detail, the assessee had identified the speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income Tax (Appeals)-3, Mumbai in appeal No.CIT(A)-3/IT-10174/2016-17 dated 19/09/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 29/03/2016 by the ld. Dy. Commissioner of Income Tax-1(3)(2), Mumbai (hereinafter referred to as ld. AO). 2. The ground No. i and ii raised by the assessee is with regard to computation of capital gains on sale of property. 3. We have heard rival submissions and perused the materials available on record. We find that assessee is a private limited company engaged in the business of marketing, installation and servicing of high technology, analytical and laboratory instruments, the returned income for the A.Y.2013-14 was electronically filed on 30/09/2013 declaring total income of ₹ 6,93,07,420/-. During the year, the assessee sold a residential flat bearing No.1401, 14th Floor, B-Wing, Tower-I, Ashok Gardens, Sewri, Mumbai. Assessee filed computation of long term capital gains showing long term gains after indexation of ₹ 1,87,62,681/-. The ld. AO observed that however in the return of income the same has been taken at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 248 wherein it was held that, date of allotment would be relevant date for the purpose of determining the holding period of capital asset. It was also held that date of allotment so made shall be the relevant date for the purpose of capital gain tax as date of acquisition. It was also noted that the allottee gets title to the property on the issue of allotment letter and payment of instalments was only a follow-up action and taking delivery of the possession is only a formality. Respectfully following the aforesaid decision, we hold that the asset has been held by the assessee for more than three years as computed from the date of allotment and accordingly, the asset transferred would be a long term capital asset thereby resulting in long term capital gains in the instant case. Assessee would also be eligible for benefit of indexation. 3.1. Having held that the asset transferred is a long term capital asset, the next question that arises for our consideration is whether the indexation benefit for cost of acquisition should be allowed to the assessee, based on the payments made in instalments and applying the cost inflation index in the relevant year of payment. We find that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 170555 5 Grace Engineers Furniture Chairs 299784 42105 341889 6 Isha Systems Software Office Equipments Door Access Control 17313 2431 19744 7 Shemaroo Corporation Office Equipments Projector 54,550 7662 62212 8 Indu Arts Frames P. Ltd., Painting Painting 7312 1027 8339 9 Blue Star Limited Plant Machinery- Others Air conditioning 943803 132557 107636 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 GVS Creation Renovation Exps 12.5% on total project cost 7369 7369 21 Ajit Shilpi Architect 607455 607455 31,28,918 4,39,457 34,967 47,84,034 83,87,376 4.2. From the aforesaid details given in tabulation, the ld. AO accepted all the figures except the renovation expenses incurred in the sum of ₹ 26,50,292/- for civil and carpentry work etc., through the contractor M/s. Ahmed Interiors seeking to treat the sum as capital in nature. Before the ld. CIT(A), assessee furnished all the bills of Ahmed Interiors and accordingly, the ld. CIT(A) sought remand report from the ld. AO. In the remand proceedings, we find that the aforesaid tabulation was duly furnished by the assessee before the ld. AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment. During the course of appellate proceedings, the assessee filed the details of the names of the employees with their designation and date of commencement of travel together with the details of foreign travel of Managing Director. The details of entire foreign travel of employees are enclosed in page 37 of the paper book. The details of entire foreign travel of Managing Director are enclosed in page 116 of the paper book as under:- 5.2. The assessee also enclosed the entire bills in support of the aforesaid table from pages 117 to 289 of the paper book. It was pleaded by the assessee before the ld. CIT(A) that the Managing Director had incurred various expenses during his foreign travel which is meant for business purposes and had incurred various expenses on behalf of the company. Accordingly, these expenses were also duly reimbursed by the assessee company to the Managing Director. These details were very much available before the ld. AO in the assessment proceedings. We find that the entire foreign travel expenses of the employees of the assessee company have been duly allowed in full by the ld. AO. Admittedly, the Managing Director of the assessee com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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