- (1.) This appeal under Section 260-A of the Income Tax Act, 1961 has been preferred by the Assessee against the judgment and order dated 22.09.2006 passed by the Income Tax Appellate Tribunal in I.T.A. No. 280/Luc/2006 for the assessment year 2002-03.
(2.) On 02.02.2007, a Coordinate Bench of this Court has admitted the present appeal on the following substantial questions of law: 1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is correct in Law in holding that it is the actual amount paid from time to time after the date of issuance of allotment letter which is to be considered for the purposes of indexation with respect to the date of payment within the meaning of Section proviso of Section 48 of the Income Tax Act, 1961 read with Clause-II and IV of explanation thereof. 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in Law for making the actual payment as the basis for indexation rather than the cost on the date of purchase of the land.
(3.) The brief facts of the case are that the Assessee is an advocate and derives the income from legal profession as well as income from other sources. For the assessment year under consideration, the Assessee has filed its return on 16.10.2002 and declared the total income of Rs. 3,45,517/- which comprises a sum of Rs. 99,331/- as income from other sources. During the scrutiny, it was noticed by the A.O. that the Assessee owned a plot of land having total area of 260 sq. mtr. at 1/4 Vikrant Khand, Gomti Nagar, Lucknow and the same was sold for a consideration of Rs. 5 lacs as per the sale deed dated 27.03.2002. On the sale consideration, the A.O. has charged the short term capital gain by observing that the Assessee has purchased the plot in question in the financial year 1982-83 initially by making a payment of Rs. 3000/- only under the scheme and remaining payments were made in installments. Though the Assessee has claimed the capital loss of Rs. 14,815/- but the A.O. has levied the short term capital gain of Rs. 3,68,275/- by considering the CBDT circular No. dated 15.10.1986. The same was upheld by the CIT(A). However, the Tribunal has observed that the long term capital gain will have to charged in the instant case. Still not being satisfied with the reliefs given by the Tribunal, the Assessee has filed the present appeal.;