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The Tax Publishers2020 TaxPub(DT) 0074 (Asr-Trib) INCOME TAX ACT, 1961
Section 45 Section 168
On chargeability of capital gains on estate of deceased capital gain has to be restricted to the proportionate amount of sale consideration received during the year and the rest of the capital gain will be taxable in the year in which rest of the consideration would be received.
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Capital gains - Year of chargeability - Capital gain on estate of deceased -
The segment of estate of Shri Jagir Singh which was subjct-matter of the impgend assessment order had already devolved on his three sons after his death on 12-4-2003 and this fact was duly recorded in the records of the Punjabi Coop Housing Society Ltd. and the worthy CIT(A) had not recorded any finding there on this ground of appeal and which felt to be recorded by him because Tribunal had invoked section 168. Assessee contended that the Order dated 11-9-2017, passed by the Division Bench of this Tribunal in on the case of Shri Prem Singh Lalpura (deceased) through only local L/Hr. Mr. Daljit Singh (son) in ITA No. 133/Asr/2015 for the assessment year 2007-08 whereby the issue relating to capital gain has been discussed in favour of assessee. The assessee sbmitted that the present appeal was squarely covered by the aforesaid order of the Tribunal.Held: There was no reasons to take any other view of the matter than the view so taken by the Division Bench of this Tribunal in the case of Shri Prem Singh Lalpura (deceased) through only local L/Hr. Mr. Daljit Singh-son (supra) vide Order dated 11-9-2017. In this order, the Tribunal has inter alia observed and held that In view of the above findings of Punjab & Haryana High Court, the order of CIT(A) was not sustainable as the Court had decided that under these circumstances. Capital gain has to be restricted to the proportionate amount of sale consideration received during the year and the rest of the capital gain will be taxable in the year in which rest of the consideration is received. The AO was, therefore, directed to compute capital gains tax on the basis of actual receipts during the year. Capital gain has to be restricted to the proportionate amount of sale consideration received during the year and the rest of the capital gain will be taxable in the year in which rest of the consideration would be received.
Followed:Prem Singh Lalpura v. ITO in ITA No. 133/Asr./2015 dt. 11-9-2017
REFERRED :
FAVOUR : In assessee's favour (partly).
A.Y. : 2007-08
INCOME TAX ACT, 1961
Section 271(1)(c)
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