DAMJI J GALA,KHANDILKAR ROAD vs. ITO 19(1)(4), TARDEO ROAD

ITA 3407/MUM/2024Status: DisposedITAT Mumbai16 December 2024AY 2010-1128 pages
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What did the Tribunal hold?

The Tribunal held that the transfer of the property, as per Section 2(47) of the Income Tax Act read with Section 53A of the Transfer of Property Act, took place only upon the execution of the Deed of Transfer on 25/09/2007, not earlier. The cost of acquisition was directed to be re-computed, considering the amount paid for tenancy rights and conversion to ownership, with indexation benefit from 01/04/2005.

What were the facts?

The assessee did not file a return of income for AY 2010-11. The AO reopened the assessment based on information that the assessee sold a shop for Rs. 45,00,000, while the market value was Rs. 83,02,221, leading to potential capital gains. The assessee contended that payments and possession were transferred in AY 2009-10.

What were the issues?

The primary issues were the correct date of transfer for capital gains tax calculation and the computation of the cost of acquisition, especially concerning the conversion of tenancy rights to ownership.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 2(47),Section 50C,Section 45,Section 53A

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Cases cited in this judgment(5)Show list

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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SMT BEENA PILLAI & SHRI PRABHASH SHANKAR

Per Beena Pillai, JM: Present appeal filed by the assessee arises out of order dated 11.07.2024 passed by NFAC Delhi for assessment year 2018-19 on following grounds of appeal: 1. “The learned CIT(A) has erred in law and in facts in confirming the action of AD to notice under section 148 of The Income Tax Act & the sppellant prays that under section 147 be declared illegal & bad in law.

2.

The learned CIT(A) has erred in law and in facts in confirming the action of AO to issue notice under section 148 when the substratum for formation of belief that income liable to tax has escaped assessment has not formed part of the reasons recorded and also year o

The order continues below.

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