TaxTMI 
TaxTMI 
2014 (1) TMI 434
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.... and not from the date of possession of the property as allowed by the authorities below. 3. The assessee in the present case is an individual who filed his return of income for the year under consideration on 26-07-2007 declaring total income of Rs.14,92,704/-. In the said return, long term capital gain arising from sale of his flat No. 2303, Lloyds Estate, Salt Pen Road, Wadala, Mumbai was offered by the assessee as worked out at Rs.13,34,085/-. During the course of assessment proceedings, the working of capital gain furnished by the assessee was examined by the AO. On such examination, he found that the flat sold during the year under consideration giving rise to the capital gain was purchased by the assessee as per the purchase agreeme....
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.... dates of purchase agreement and instalments paid. Before the learned CIT(Appeals), elaborate submissions were made on behalf of the assessee in support of his case on this issue and various judicial pronouncements were also cited in support. The learned CIT(Appeals), however, did not find the stand of the assessee on this issue to be acceptable. According to him, the assessee having taken the possession of the flat in the year 2003, the transfer of the flat had taken place in that year and not in the earlier year. He held that the purchase agreement entered into by the assessee as well as instalments paid in the earlier years, therefore, could not be considered for the indexation. Accordingly, the computation of indexed cost of acquisition....
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....the previous year relevant to assessment year 2007-08 and while computing the long term capital gain arising from the said sale, indexed cost of acquisition was claimed by the assessee as deduction as worked out by taking into consideration the dates of purchase agreement and instalments paid. The AO as well as the learned CIT(Appeals), however, worked out the indexed cost of acquisition taking into consideration the date of taking of possession of flat and when the matter reached to the Tribunal in an appeal filed by the assessee, the Tribunal accepted the claim of the assessee for the following reasons given in paragraph No. 26 to 29 : "26. Now, coming to the second question, which relates to the date from which the indexed cost of acqui....
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....vable property (including wearing apparel and furniture) held for personal use by the assessee or any member of his family dependent on him, but excludes- (a) jewellery; (b) archaeological collections; (c) drawings; (d) paintings; (e) sculptures; or (f) any work of article." 29. According to the aforementioned definition, capital asset means property of any kind held by an assessee whether or not connected with the business or profession and it excludes certain items which while considering the facts of the present case are not relevant. Therefore, it has to be seen that whether by entering into an agreement vide which the assessee was allotted a particular flat by allotment letter whether the assessee has held any asset or not. By e....