Long-term capital loss on jointly owned property sustained where acquisition evidence matched accepted facts and contrary view was rejected.

Disallowance of long-term capital loss on sale of a jointly owned property was found unsustainable where the assessee's purchase, sale, indexed cost of acquisition and supporting documents matched the factual position accepted in the husband's scrutiny assessment. The Department could not take a contradictory view on the same transaction in the absence of any adverse material against the acquisition evidence or loss computation. The disallowance was deleted and the long-term capital loss claim was allowed.

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Issues: Whether the disallowance of long-term capital loss claimed on sale of jointly owned property, including indexed cost of acquisition and related documentary evidence, was sustainable.

Analysis: The assessee's claim arose from purchase and sale of the same property in identical factual circumstances as those accepted in the scrutiny assessment of the assessee's husband. The record also showed supporting documents for the acquisition payments and the computation of the claimed long-term capital loss. In these circumstances, the Department was not justified in taking a contradictory view on the same transaction and the disallowance could not be sustained.

Conclusion: The disallowance was deleted and the claim of long-term capital loss of Rs. 2,94,41,694/- was allowed in favour of the assessee.

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