CIT vs. VIKAS CHOUDHARY

ITA - 63 / 2013HC Delhi20 February 20131 pages

For Petitioner: KAMAL SAWHNEY

AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi dismissed the appeal filed by the Revenue. The Court held that the substantial question of law proposed by the Revenue was covered against them by the High Court's own prior decision in the case of Arun Shungloo Trust v. CIT: (2012) 205 Taxman 456 (Del.). Furthermore, the Court noted that a similar view had previously been taken by the Bombay High Court in the case of CIT v. Manjula J. Shah: (2012) 204 Taxman 691 (Bom.). The reasoning was that the principle established in these precedents directly addressed and decided the issue of indexation of cost of acquisition with reference to the first owner's holding period, thereby resolving the dispute in favor of the assessee's position as upheld by the ITAT. The operative direction was the dismissal of the appeal.

What were the facts?

The Revenue, represented by the CIT, filed an appeal before the High Court of Delhi challenging an order dated 27.04.2012 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.4296/Del/2010. The appeal pertains to the assessment year 2007-08. The core of the dispute revolves around the computation of the indexed cost of acquisition for an asset. The Assessing Officer had computed this based on the date the assessee first held the property, whereas the ITAT held that the indexation should be calculated from the date the first owner held the asset.

What were the issues?

1. Whether, under the present facts and circumstances and in law, the Hon'ble ITAT was correct in holding that the indexed cost of acquisition should be computed with reference to the date when the first owner held the asset, as against when the assessee first held the said property, as taken by the assessing officer? (Question of law/mixed law and fact, concerning computation of capital gains). Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue argued that the ITAT erred in its decision regarding the computation of the indexed cost of acquisition. They contended that the indexation should be based on the date the assessee acquired the property, not the date the first owner held it. The Revenue relied on the proposed substantial question of law to frame their argument.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . . . ITA 63/2013 . . . CIT ..... Appellant . Through: Mr Kamal Sawhney, Sr. Standing Counsel. . versus . . . VIKAS CHOUDHARY ..... Respondent . Through: Mr Mayank Nagi, Advocate. . . . CORAM: . HON'BLE MR. JUSTICE BADAR DURREZ AHMED . HON'BLE MR. JUSTICE R.V.EASWAR . . . O R D E R . 20.02.2013 . . . This appeal by the revenue is directed against the order dated 27.04.2012 passed by the Income Tax Appellate Tribunal in ITA No.4296/Del/2010 pertaining to the assessment year 2007-08. The revenue has proposed the following question as a substantial question of law: . ?(A) Whether under the present facts and circumstances of the case and in law the Hon?ble ITAT was correct in holding that the index cost of acquisition should be computed with reference to the date when the first owner held the asset as against when the assessee first held the said property, as taken by the assessing officer?? . . . The aforesaid question is covered against the revenue by virtue of the decision of this Court in the case of Arun Shungloo Trust v. CIT: (2012) 205 Taxman 456 (Del.). A similar view had been taken by Bombay High Court earlier in the case of CIT v. Manjula J. Shah: (2012) 204 Taxman 691 (Bom.). . Consequently the appeal is dismissed. . . . BADAR DURREZ AHMED, J . . . . . . . R.V.EASWAR, J . FEBRUARY 20, 2013 . hs . . . . . . . $ 3 .

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