TaxTMI 
TaxTMI 
2023 (12) TMI 708
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....d 54EC of the Act ignoring fact that the property in question is not a long term capital asset within the meaning of IT Act, 1961 and was not covered under the provision of clause (b) of Explanation 1 to section 2(42A) r.w.s. 49(1). 2. Whether on the facts and in the circumstances of the case in law, the Ld. CIT(A) has erred in allowing the indexed cost of acquisition of the entire property whereas during the year the assessee had sold only a part of the said property." 3. Brief facts of the case are that the assessee is an individual and engaged in the business and profession under the name and style of Impression Inc. The assessee was selected for scrutiny under CASS. A notice u/s 143(2) of the Act was issued along with questionnaires.....
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....s inherited property and she has received from his father in law i.e. Shri Kanwaljit Singh. However, the fact is that the property was not inherited property. It was purchased by Shri Kanwar Kultar Singh in the year 1970, hence Shri Kultar Singh was the absolute owner of the said property for which he was given POA to his brother Shri Kanwaljit Singh. iii As per the gift deed made by Shri Kanwaljit Singh the property was transferred by Shri Kanwar Kultar Singh and not by Shri Kanwaljit Singh as it is mentioned that the property has been transferred on behalf of recorded owner ie. Shri Kanwar Kultar Singh. The relevant para of gift deed at page no. 3 is produced as under: "And whereas, by virtue of the powers conferred upon him vide the ....
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....rty is a inherited property which she received through a gift deed, hence she is eligible for getting indexation benefit thereon. As stated above the property was belong to the brother of her father in law and not her own father in law, hence it is not a inherited property, therefore the holding of previous owner for calculation inflation index is not allowable to the assessee. viii. The facts of case laws cited by assessee are not matching with the facts of the assessee. 3.1. Based on above discussion the AO held that the following conclusion has been drawn: i. The assessee has not paid any amount for acquisition of property except stamp duty and transfer charges, hence, the cost of acquisition of property has been considered at Rs. 4....
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....- The legal position in the present case is required to be analyzed with respect to the provisions laid down in sub-section (1) of section 49 read with clause (42A) of section 2 of the Act. (a) Section 49 prescribes 'cost with respect to certain modes of acquisition. Clause (ii) of Sub-section (1) specifies that where the capital asset has become the property of the assessee under a gift or will, the cost of acquisition of the assets shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of improvement of the assets. (b) Further, Explanation-I, sub-clause (b) of clause (42A) of Section 2, provides that, in determining the period for which any capital asset is held by the ass....
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....he conclusion arrived at by the A.O at clause (v) of para 9 of the assessment order, that the gift was given by Sh. Kultar Singh without any consideration through his attorney i.e. Sh. Kawaljit Singh, is not inconsonance with facts of the case and is erroneous. Further, invocation of explanation (e) to Section 56(2)(vii) to the facts of case is also not the correct interpretation of law and has no bearing on the facts of the case. The Assessing Officer has not brought on record any document or evidence that would suggest - a) That the General Power of Attorney was void or voidable. The legal validity of the said document, which was duly registered has remained outside the pale of doubt. Thus, by virtue of the GPA, absolute power of owners....