Shri Pratik Kiritkumar Shroff, Surat v. The Dy.CIT.,Cent.Circle-3,, Surat

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AT SURAT CAMP AHMEDABAD BEFORE SHRI T.K. SHARMA JUDICIAL MEMBER AND SHRI D. C. AGRAWAL ACCOUNTANT MEMBER ITA NO.1019-1920/AHD/2008 ASSESSMENT YEAR:2001-02 & 2002-03 DATE OF HEARING:18.5.10 DRAFTED:25.5.10 SHRI PRATIK KIRITKUMAR SHROFF FLAT NO.9-D ANJAN SHALAKA APPT. OPP. JAIN TEMPLE LAL BUNGLOW ATHWALINES SURAT PAN NO.AGUPS8459D V/S . DY. COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-3 SURAT (APPELLANT) .. (RESPONDENT) ITA NO.1921-1922/AHD/2008 ASSESSMENT YEAR: 2001-02 & 2002-03 SHRI SAMIR KIRITKUMAR SHROFF FLAT NO.8-F ANJAN SHALAKA APPT. OPP. JAIN TEMPLE LAL BUNGLOW ATHWALINES SURAT PAN NO.AGUPS8459D V/S . DY. COMMISSIONER OF INCOME-TAX CENTRAL CIRCLE-3 SURAT (APPELLANT) .. (RESPONDENT) ASSESSEE BY :- SHRI RASESH SHAH AR REVENUE BY:- SMT. JYOTI LAXIMI SR-DR O R D E R PER D.C.AGRAWAL ACCOUNTANT MEMBER:- ITA NO.1019-1920/AHD/2008 TWO APPEALS ARE FILED BY THE ASSESSEES FOR ASSESSMENT YEARS 2001-02 AND 2002-03 RAISING COMMON GROUNDS AS UNDER:- ITA NO.1019-1922/AHD/2008 A.YS. 01-02 & 02-03 SH. PRATIK & SAMIR K.SHROFF V. DCIT CC-3 SRT PAGE 2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS W ELL S LAW ON THE SUBJECT THE LEARNED COMMISSIONER OF INCOME-TAX(APP EALS) HAS ERRED IN PARTLY CONFIRMING THE ACTION OF THE ASSESSING OFFIC ER IN ENHANCING INCOME FROM LONG TERM CAPITAL GAIN ON SALE OF PLOTS BY DISALLOWING THE CLAIM OF DEDUCTION OF THE INDEXED COST OF BUNGALOW. 2. EVEN OTHERWISE ON THE FACTS AND IN CIRCUMSTANCE S OF THE CASE AS WELL AS LAW ON THE SUBJECT THE LEARNED COMMISSIONER OF INCOME- TAX(APPEALS) HAS ERRED IN PARTLY CONFIRMING THE ACT ION OF THE ASSESSING OFFICER IN NOT SEPARATELY COMPUTING CAPITAL LOSS ON ACCOUNT OF DEMOLITION OF BUNGALOW AND ADJUSTING IT AGAINST LONG TERM CAPI TAL GAIN ON SALE OF PLOTS. 2. THE ISSUE IS WHETHER ASSESSEES WOULD GET BENEFIT OF INDEXATION OF COST OF BUNGALOW WHILE COMPUTING CAPITAL GAINS ON SALE O F LAND AND SALE OF SCRAP RESULTING FROM DEMOLITION OF BUNGALOW. THE ASSESSEE ALONG WITH SHRI KIRTIKUMAR K SHROFF ARE CO-OWNERS OF THE LAND AND B UILDING. IN A CASE OF SHRI KIRTIKUMAR KANTILAL SHROFF IN ITA NO.1024/AHD/2008 SIMILAR GROUNDS WERE RAISED. 3. WE HAVE HELD IN THE CASE OF SHRI KIRTIKUMAR KANT ILAL SHROFF THAT HE WILL GET BENEFIT OF INDEXATION OF COST OF BUNGALOW WHILE COMPUTING CAPITAL GAINS. FOLLOWING REASONING GIVEN IN THAT CASE WE HOLD HER E ALSO THAT THESE ASSESSEES WILL ALSO GET BENEFIT OF INDEXATION OF CO ST OF BUNGALOW. AS A RESULT WE ALLOW THE APPEALS FILED BY THIS ASSESSEE. 4. ITA NO.1021-1022/AHD/2008 THESE TWO APPEALS FILED BY SHRI SAMIR KIRITKUMAR SHROFF FOR ASSESSMENT YEARS 2001-02 AND 2002-03 RAISE SIMILAR COMMON GROUNDS AS IN THE CASE OF SHRI PRATIK KIRIT KUMAR SHROFF. 5. THE ISSUE IS WHETHER ASSESSEE WOULD GET BENEFIT OF INDEXATION OF COST OF BUNGALOW WHILE COMPUTING CAPITAL GAINS ON SALE OF L AND AND SALE OF SCRAP RESULTING FROM DEMOLITION OF BUNGALOW. THE ASSESSE E IS ONE OF THE CO-OWNERS OF THE LAND AND BUILDING. IN A CASE OF SHRI KIRTIK UMAR KANTILAL SHROFF IN ITA NO.1024/AHD/2008 SIMILAR GROUNDS WERE RAISED. WE HAVE HELD THEREIN THAT ITA NO.1019-1922/AHD/2008 A.YS. 01-02 & 02-03 SH. PRATIK & SAMIR K.SHROFF V. DCIT CC-3 SRT PAGE 3 BENEFIT OF INDEXATION OF COST OF BUNGALOW AND WILL BE AVAILABLE. FOLLOWING THAT ORDER WE HOLD HERE ALSO THAT THIS ASSESSEE WILL ALS O GET SUCH BENEFIT. WE ACCORDINGLY ALLOW THESE APPEALS OF THE ASSESSEE ALS O. 6. IN THE RESULT ALL THE APPEALS OF THE ASSESSEES ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 28/05/2010 SD/- SD/- (T.K.SHARMA) (D. C.AGRAWAL) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD DATED : 28/05/2010 *DKP COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- II AHMEDABAD 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD