AMARENDRA KUMAR PAL,PASCHIM MEDINIPORE vs. I.T.O.,WARD-38(3), MEDINIPORE

This is an appeal preferred by the assessee against the order of Ld. CIT(A)-11, Kolkata dated 18-04-2019 for the assessment year 2014-15. 2. The assessee has raised the following grounds of appeal: “1. For that the determination of Long Term Capital Gains at Rs.23,93,079/- made by the AO and confirmed by the Ld. CIT(A) is wrong, uncalled for and otherwise excessive.

2. For that the AO ought to have considered the fact that the appellant along with his two brothers having received the gift of the property earlier in the year 1965 from his father and as per family settlement having become the owner of the property in the year 1985 was entitled to the benefit of cost inflation index on the value as on 01.04.1981 which the AO ought to have taken note of and determined the assessable Long Term Capital Gain accordingly.”

3. From the perusal of ground no. 2 it is clear that the main grievance of assessee is that while computing the Long Term Capital Gains (LTCG), the cost of acquisition of the property should be taken as on 05.03.1965, since the assessee along with his two brothers have received the gift of the property earlier in the year of 1965 from his father and as per family settlement having become the owner of the property in the year 1985 was entitled to the benefit of cost inflation index on the value as on 01.04.1981. According to assessee, the AO has not given this benefit of cost inflation index on the value as on 01.04.1981. Therefore, the assessee pleads that the AO ought to have called for the valuation of the property from the DVO and thereafter only after considering his report as well as the objection of the assessee should have decided the case as held by the Hon’ble Calcutta High Amarendra Kr. Pal, AY- 2014-15 Court in the case of Sunil Kr. Agarwal Vs. CIT, Siliguri, GA No. 3686 of 2013 ITAT No.221 of 2013 dated 13.03.2014. I note that the assessee has obtained valuation report of the land in question from Shri Manoj Kumar Sen a consulting Engineer and approved valuer, [a copy of which is placed before me] and the prayer of the assessee is that for the purpose of calculation of Long Term Capital Gains in respect of the properties sold by him since have been given as gift to him as well as his brother from 05.03.1965 and became a full owner since 04.02.1985, the AO may be directed to call for the DVO’s report as held by the Hon’ble jurisdictional High Court in Sunil Kumar Agarwal (supra) and determine LTCG which we direct the AO to do so. Therefore, we set aside the order of the Ld. CIT(A) and direct the AO to call for the DVO’s report and, thereafter compute the LTCG in accordance to law.

Sd/- (Aby. T. Varkey) Judicial Member Jd.(Sr.P.S.)

Dated :31st December, 2019 Copy of the order forwarded to:

4. CIT- , Kolkata.