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| The Tax Publishers2019 TaxPub(DT) 8289 (Del-Trib) INCOME TAX ACT, 1961
Section 143(3) Section 48
Where assessee furnished return of income by undertaking cost of acquisition from the year of date of registration of property and during the course of account provided a revised computation claiming indexation from the date of booking of house, then there was a case of recomputation of claim already made by assessee and, therefore, such revised computation had to be accepted in assessment proceedings even if assessee did not furnish it through return of income but by way of a letter.
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Assessment - Admissibility of revised computation of already existing claim - Recomputation not claimed through return but by way of letter -
Assessee declared a long-term capital gain on sale of residential. The cost of acquisition of the above property was, indexed from financial year 2007-08. During the course of assessment proceedings, assessee filed a revised computation of income and claimed indexation benefit from financial year 2005-06 on part of the cost paid during that financial year 2005-06. Assessee computed indexation on the basis of the date of payments i.e. date of booking of house, made in respect of the said property stating that legal right had been accrued to the assessee on the date of payment of the 1st installment. It was further stated that assessee had acquired a right to get a particular property and that right of the assessee itself is a capital asset. Therefore, according to assessee, benefit of indexation has to be granted to the assessee from the year it booked the residential property and not the year in which it was registered in the name of the assessee or the year in which possession is given to assessee. AO rejected claim of assessee, as assessee did not furnish it through a return on income but by way of a letter.Held: It was not a case where any new claim for deduction was made and there was merely recomputation of claim already made by assessee and, therefore, such revised computation had to be accepted in assessment proceedings.
Followed: Pr. CIT v. Oracle (OFSS) BPO Services Ltd. (2019) 102 taxmann.com 196 (Del) : 2019 TaxPub(DT) 1624 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
INCOME TAX ACT, 1961
Section 48
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