2022 (7) TMI 215

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....al are that the assessee is an individual and deriving income under various heads viz., salary, capital gains, income from house property and income from other sources. For the AY.2014-15, the assessee filed his return of income on 25- 03-2015 declaring a total income at Rs. 52,57,120/-. During the course of assessment, learned Assessing Officer noticed that during the financial year 2013-14 the assessee sold 5 flats and got gain on some flats and suffered loss on some of the flats. Assessee, however, had shown the cost of acquisition for flat No. 914 of SMR Vinay Symphony as Rs. 27,43,000/- whereas for flat No. 319 in the same apartment the cost of acquisition was shown as Rs. 6,50,000/-. Learned Assessing Officer noted that the assessee a....

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....hange of the plot of land worth Rs. 4,79,660/-; and, therefore, the cost of acquisition in the hands of the assessee shall be Rs. 5,45,660/- and because the assessee had shown Rs. 6.50 Lakhs which is beneficial to the assessee, the same could be accepted. On this premise, Ld. CIT(A) dismissed the appeal. 4. Aggrieved by such findings of Ld. CIT(A), the assessee is in appeal before us. It is submitted on behalf of the assessee that the assessee claimed cost of acquisition of Rs. 27,43,000/- against the sale of Flat No. 914, which property was acquired by him as gift from her mother Smt. S.Saritha Sai Reddy; that such cost comprises of Rs. 27,23,000/- being cost of acquisition of Smt. S Saritha Sai Reddy and Rs. 20,000/- being stamp duty and....

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....as is held in the decisions reported in CIT Vs. Shanthi Chandran (2000) 241 ITR 371 (Madras) and Sonia Maria Mistri Vs. ITO (2013) 141 ITD 508 (Mumbai Tribunal). He submitted that is not known for what reasons the mother of the assessee added something to the cost of acquisition and what is the basis for such addition. He submitted that the loss speaks of 'cost of acquisition', but not 'fair market value'. He, therefore, submits that the authorities below are perfectly right in taking the cost of acquisition in the hands of the mother of the assessee as the cost of acquisition for the assessee and, therefore, the findings of the authorities below do not warrant any disturbance. 6. We have gone through the record in the light of the submiss....

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.... gains arising therefrom. On this premise the assessee insists that the cost of acquisition of plot No. 914 in the hands of the mother was not Rs. 5,25,660/- but it is actually Rs. 27,23,000/-. By adding a sum of Rs. 20,000 incurred by the assessee towards gift deed, assessee values the cost of acquisition in his hands at Rs. 27,43,000/-, which the Revenue vehemently disputes. 8. The language employed by section 49(1) of the Act is unequivocal. It contemplates that where the capital asset becomes the property of the assessee, under a gift or will, the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the asset incurred or ....