TaxTMI 
TaxTMI 
2025 (11) TMI 224
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....e owner of the shares from the year in which the shares were held by previous owners, i.e., 1978. Therefore, the base year for the purpose of availing indexation benefit would be 1981. 3. The learned CIT(A) failed to take into consideration that not only is the Appellant entitled to claim cost of the previous owners (i.e. 1" April, 1981), but is also entitled to claim indexation benefit from (i.e. 1 April, 1981). 4. The learned CIT(A) erred in disregarding the ruling in the case of CIT vs. Manjula J. Shah relied upon by the Appellant." Revenue's ground 1. Whether on the facts and circumstances of the case and in law, Ld.CIT(A) has erred in directing to delete the entire disallowance of Rs. 5,25,00,000/- made by the AD claimed as exemption u/s. 54F of the Act, being the amount invested under the Capital Gain Account Scheme (CGAS) and Rs. 50,00,000/- in Bonds claimed as exemption u/s. 54EC of the Income-Tax Act ?" 2. Whether on the facts and circumstances of the case and in law, Ld. CIT(A) has erred in directing to delete the additions, by ignoring the fact that AO has denied the said exemption by holding that investments in Capital Gain Bond ma....
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....4.1981. The AO held that since the year in which the assessee acquired the shares and the year of transfer being the same, the benefit of indexation cannot be given to the assessee. The AO further held that since the assessee has not furnished any documentary evidence towards investments towards which the assessee has claimed exemption under section 54F/54EC, the same cannot be allowed. Accordingly the AO considered 50 % of the sales consideration received by the assessee amounting to Rs. 2,90,38,712/- for the purpose of computation of long term capital gain and balance 50% amounting to Rs. 2,90,38,711/- is considered as income from other sources. Thus, the AO completed the assessment u/s 143(3) by (i) Denying the exemption claimed under section 54F/54EC (ii) Denying the indexation of cost of acquisition (iii) Treating 50% of the capital gain as income from other sources 3. Aggrieved the assessee filed further appeal before the Ld. CIT(A). The Ld. CIT(A) allowed the claim of exemption under section 54F/54EC by the assessee by holding that - In light of the above facts, it is pertinent to note that the Appellant has purchased Rural Electrificat....
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....e from other sources the Ld. CIT(A) held that - In light of the above facts, it is evident even from the Demat account, that 87 shares belonged to Ms. Nishita Mehta and that the entire consideration was solely received in her Bank account. It is also stated by the appellant that Mr. Vijay Tulsidas Mehta was re-opened merely on this point. During the re-assessment proceedings, the Appellant submitted a letter dated 28-03-2023 in which complete details were given regarding the gift of 87 shares to his daughter (i.e. Assessee herein). All supporting documents were submitted during the scrutiny proceedings and after having perused all the evidences and claims, the AO (for Vijay Mehta), passed the Re-Assessment Order, accepting the Returned Income. In respect of the same, Mr. Vijay Tulsidas Mehta has given the confirmation letter in which 87 shares were gifted solely to the appellant i.e. Nishita Vijay Mehta, and that she is the sole beneficial owner, was duly accepted by the Income Tax Department and therefore a contrary view cannot be taken to say that the shares were jointly held, in which each had 50% shareholding. The AO failed to consider joint Declaration dated 30th Janu....
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....in the following manner :- No. of shares Year Transfer from 217 shares 1993 Kamlaben Shamjibhai Mehta Family Trust 30 shares 23-10-2009 Jayalaxmi Mehta 2 shares Shamji Harjivandas Mehta 249 shares 5. The shares of IMCC were transferred in the names of (i) Mr. Vijay Tulsidas Mehta and (ii) Mrs. Kavita Vijay Mehta. However, it is to be noted that Mrs. Kavita Vijay's name was added only for the sake of convenience and the real beneficial owner of the said shares of IMCC, was solely Vijay Tulsidas Mehta. (Copy of the Share Transfer Forms showing transfer of such shares is enclosed on Pg. 106-117 of PB). 6. Thereafter vide gift dated 06-01-2017, (1) Mr. Vijay Tulsidas Mehta and jiij Mrs. Kavita Vijay Mehta, gifted/transferred 87 shares of IMCC to their daughter, Ms. Nishita Vijay Mehta (the Assessee herein), out of natural love and affection. Copy of Gift letter dated 06-01-2017 along with Share Transf. Form is on Page 118-119 of PB). 7. IMCC issued a new share certificate in favour of Nishita the Assessee and on the back side of the document, endorsed the name of Nishita Vijay Mehta and Mr.....
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....er, we notice that the assessee has submitted the relevant details pertaining to the investments as tabulated below before the AO which has not been considered by the AO (refer the relevant observations of the Ld. CIT(A) as extracted herein above) Bank Savings A/C. No Amount (in Rs.) Term Deposit For 2 years Renewed for 1 year Bank of Baroda Capital Gain Acc 04050100018062 3,35,00,000 429237 27-04-17 Rs. 95,00,000 895676 27-04-19 Rs. 95,00,000 429289 16-05-17 Rs. 95,00,000 429262 05-05-17 Rs. 95,00,000 429552 20-07-17 Rs. 50,00,000 Central Bank of India Capital Gain Acc 3608411514 1,90,00,000 878057 02-05-17 Rs. 95,00,000 966998 30-04-19 Rs. 95,00,000 878057 28-04-17 Rs. 95,00,000 966999 30-04-19 Rs. 95,00,000 5,25,00,000 5,25,00,000 10. The Ld. AR during the course hearing submitted that the assessee has offered th....