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Tribunal allows deductions for long-term capital gains from ancestral property sale The Tribunal upheld the decision of the CIT(A) to allow deductions under sections 54EC for the appellant's long term capital gains from the sale of ...
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Tribunal allows deductions for long-term capital gains from ancestral property sale
The Tribunal upheld the decision of the CIT(A) to allow deductions under sections 54EC for the appellant's long term capital gains from the sale of ancestral joint property. The Tribunal also admitted additional evidence for the claim of indexed cost of acquisition, directing the Assessing Officer to decide on the deduction under section 48(ii) based on the new evidence. The revenue's appeal was dismissed, and the assessee's cross objection was allowed for statistical purposes.
Issues involved: The computation of long term capital gains arising from the sale of ancestral joint property.
Details of the Judgment:
Issue 1: Computation of Long Term Capital Gains The appellant, an individual employed with a company, sold ancestral joint property and claimed deductions u/s. 54EB, 54EC & 54F of the Act, resulting in nil capital gains in the return of income. The Assessing Officer disallowed the deductions as they were not claimed in the original or revised return. The CIT(A) allowed the deduction u/s. 54EC, stating that once capital gain is assessed, relevant deductions must be given if the investment was made in specified assets. The Tribunal upheld the CIT(A)'s decision, dismissing the revenue's appeal.
Issue 2: Claim for Indexed Cost of Acquisition The CIT(A) disallowed the claim for deduction on account of indexed cost of acquisition as it lacked supporting evidence. The Tribunal allowed the assessee's cross objection, admitting additional evidence of the valuation report obtained post the CIT(A)'s order. The issue was restored to the Assessing Officer for a decision on the claim for deduction u/s. 48(ii) based on the additional evidence.
The Tribunal upheld the CIT(A)'s decision to allow deduction u/s. 54EC for the appellant's long term capital gains, emphasizing the statutory provisions. The Tribunal also admitted additional evidence for the claim of indexed cost of acquisition, directing the Assessing Officer to decide the claim based on the new evidence. The revenue's appeal was dismissed, and the assessee's cross objection was allowed for statistical purposes.
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