2015 (7) TMI 103

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Company issued a letter dated 24-2-1994, by which it was agreed to allot flat No.401 on the fourth floor of the proposed residential building named, 'The Great Eastern Shores', at Shanti Path, Off. Gandhi Gram Road, Juhu, Bombay. They have given a schedule of payment also (Copies of letter dated 24-2-1994 and schedule of payment have been placed in the paper book at pages 9 to 12). Thereafter the assessee made payment to the builder in installments (Copy of payment through installments has been placed in paper book at page 8). As per the detail of investments, the major payments have been made in the year 1993 to 1995. Interest of Rs. 2,04,000/- has also been paid in the year 1996. The total aggregating value of the flat, which was agreed ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d. 7. On the other hand, learned DR strongly placed reliance on the order of the Assessing Officer as well as the order of the CIT(A). 8. After considering the submissions and perusing the material on record, I found that the assessee deserves to succeed on this issue. I noted that even the CIT(A) has accepted this contention that the allotment of the flat was given on 24-2-1994, however, the agreement was entered into on 14-2-1999. There is no dispute that the request of the assessee for allotting the flat No.401 at fourth floor in proposed residential complex, was accepted by the builder and a consent letter was given, subject to making the payments in installments. The assessee had paid full amount of consideration in the year of 1994,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nted to allot the same vide letter dated 24-2-1994, copy of which has been placed at page 9 of the paper book. The payments have been made by the assessee regularly from 1993 to 1996. Therefore, in my considered view, the assessee deserves to succeed on this issue and eligible for indexation from the respective dates of payments made against the purchase of flat as the assessee got rights in the flat from the first date of payment made as per the schedule given by the builder. I further clarify that the assessee is entitled for indexation of the payments made on respective dates. Accordingly, I direct the Assessing Officer to allow indexation to the assessee of respective amounts from the date of which they have been paid. This issue is dec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... not concerned with the question arising in the present case that whether other expenses incurred in addition to the price of the premises should be included in the cost. Accordingly, it was submitted that the decision of the Hon'ble High Court is not applicable on the facts of the present case. It was submitted that the cost of acquisition of flat is not confined to the purchase price only as any other expenditure incurred subsequently towards flat must also be included i.e. interest paid subsequently on delayed payment as held allowable in the case of CIT Vs. Mithilesh Kumar, reported in 92 ITR 9. Similarly, the other expenses on account of brokerage, Stamp Duty also have to be considered as part of cost. 13. On the other hand, learned D....