TaxTMI 
TaxTMI 
2016 (8) TMI 19
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....ee on the date of death of the assessee's father or the date on which the assessee's father had become owner of the property. 3. In this case, the Income-tax Officer, International Taxation -2(2), Chennai while completing the assessment u/s.143(3) of the Act vide order dated 27.2.2015, computed the total income at Rs. 64,20,600/-. The AO completed the assessment by taking indexed cost of acquisition only from the year in which the property devolved on the assessee. In other words, indexation point 632 pertaining to the year 2009-10 [year of death of father/husband Shri Padmanabhan 25.1.2010] and the property devolved in equal share along with his mother Smt. Vasantha Padmanabhan and brother Sri Suresh Padmanabhan) was only adopted as again....
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....frac12; months and it is resulted in short term capital gains. According to the Commissioner of Income-tax(Appeals), the assessee became the owner of the property only on 20.11.2005 and there is no question of consideration of cost of asset in terms of sec.49(1)(iii)(a) of the Act. 12. It is to be noted that this Tribunal in the case of Smt. Mina Deogun v. ITO(19 SOT 183)(Kol.), after considering the Memorandum explaining the Finance Bill 1992 and CBDT Circular No.636 dated 13.8.1992 (107 CTR(St.), held that indexation is to be allowed in respect of period of holding of the asset and not in relation to the individuality of the assessee. Accordingly, it was held that for the purpose of determining the period of holding, intermediate transf....
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....Ltd. (88 ITR 192). 14. In view of this, we hold that in the present case, the assessee inherited the property on 21.5.2002. The said property was purchased by the assessee's mother on 12.4.1960. After the death of the assessee's mother, the property was inherited to the assessee along with other co-owners. Accordingly, the cost of indexation to be applied as on 1.4.1981, after fixing the value of the asset as on 1.4.1981 and it cannot be said that the assessee acquired property under dispute on 21.5.2002 on the death of the assessee's mother so as to compute the capital gains. In other words, capital gains has to be assessed as long term capital gains by fixing the cost of asset as on 1.4.1981 and thereafter applying the cost of inflation....
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....n on ICICI Bank, Cheque dated 24.04.2012 Accordingly, the assessee claimed deduction u/s.54EC of the Act, of Rs. one crore as investment in the financial year. However, the CIT(Appeals) considered the facts and circumstances of the case and given exemption of Rs. 50 lakhs. Against this, the assessee is in appeal. 8. We have heard both the parties and perused the material on record. The Madras High Court in the case of CIT v. Jaichander (370 ITR 579), held as under : "10. The Legislature has chosen to remove the ambiguity in the proviso to section 54EC(1) of the Act by inserting a second proviso with effect from April 1, 2015. The Memorandum Explaining the Provisions in the Finance (No. 2) Bill, 2014, also states that the same wil....