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Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI
Before: Dr. B. R. R. KumarMs. Astha Chandra
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Ms. Astha Chandra, Judicial Member Asstt. Year : 2016-17 Sh. Raj Kishan Khanna, Vs DCIT, L/H of Lt. Smt. Sushma Khanna, Central Circle-29, 2623-24, Bank Street, Karol Bagh, New Delhi-110055 New Delhi-110005 (APPELLANT) (RESPONDENT) PAN No. AAJPK5385P Assessee by : Sh. Ramesh Goel, CA Revenue by : Sh. Vivek Vardhan, Sr. DR Date of Hearing: 30.08.2023 Date of Pronouncement: 29.09.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of ld. CIT(A)-30, New Delhi dated 21.03.2023.
Following grounds have been raised by the assessee in this appeal:
“1. Order of the Ld. CIT(A) is bad in law and against the facts of the case. 2. The Ld. CIT(A) and Ld. AO are totally unjustified in the not allowing the claim of assessee on a/c of conversion charges to the tune of Rs. 17,12,535/- i.e. 50% of total conversion charges paid to MCD. 3. The Ld. CIT(A) is not justified in not allowing cost of construction on indexation basis in the calculation of STCG where the property remained more than 3 years with the assessee.
2 Raj Kishan Khanna 4. The Ld. CIT(A) is totally unjustified in taking cost of construction as Rs. 37,42,405/- in place of Rs. 46,33,271/- by ignoring indexation cost. The observation of the Ld. CIT(A) is wrong in holding that MCD plan was sanctioned on 26.03.2014 and property was sold on 04.03.2016. In fact the MCD plan was sanctioned on 14.12.2009 and was valid up to 13.12.2014. So the assessee was eligible for indexation cost.”
Heard the arguments of both the parties and perused the material available on record.
The ld. CIT(A) at page no. 9 of the order concurred with the observation with the Assessing Officer and in determination of “Short Term Capital Gains” (STCG) as the property was reconstructed after demolition of old house and after getting the plan sanctioned from MCD on 26.03.2014. As the property was not in existence for a period of more than 3 years……..”
The property was sold on 04.03.2016 and hence the revenue authorities held that the property was not in existence for a period of more than 3 years Short Term Capital Gains have been determined.
The approval of the Delhi Nagar Nigam is reproduced below:
4 Raj Kishan Khanna 7. The Delhi Nagar Nigam has approved the permission on 14.12.2009 which was based on the letter of the assessee dated 10.08.2009 and the same was valid upto 13.12.2014.
From the above, we hold that the ld. CIT(A) fallen into error in determining the period of Short Term Capital and hence the matter is remanded to the file of the Jurisdictional Assessing Officer (JAO) to compute the Long Term Capital Gains by properly taking into consideration the approval of the Delhi Nagar Nigam.
In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 29/09/2023.