capital gain tax
Querist : Anonymous
1. Capital gain tax on entire 48 lac
OR
2 Capital gain tax on 48-18=30 lac(after indexation)?
Mrs. Pushpa Sofat Vs ITO (2002) 81 ITD 1 (Chd-Tri).
Namrata Ji, pl commend.
Why are you taking both views?
Querist : Anonymous
I follow the wordings in the 1961 act. I cited the issue for your valuable comments. Tribunal is behind harmonious construction. If the legislature's intention was that ,the wordings would have been different from what it is now. Moreover there are settled decsions, not on identical issue, that the court have no power to insert/replace words in the sections of law. Tribunal decision is not final. Till an apex court decision comes or legislature changes /amend the law I will undoubtedly follow the law as I said from the very begining.
In case of gifted property, you get the benefit of the cost to the previous owner. So you capital gain is not 48 but 48-18(indexed from 1990)
Chackrapaniji,
You are right that the tribunal's judgement is not the final decision, but nevertheless it is binding on the authorities which are below it.
And it is arguable whether this is a case of insertion/replacement of words in the sections of law or interpretation of law on the basis of the intent of the legislature and the rule of harmonious construction, which an accepted method for interpretation of law.
I would like to believe that where the law is allowing inclusion of period of holding of previous owner and cost of previous owner to be adopted, indexation benefit should also be given from the time of holding of the previous owner. The intent of the law is clear in the first two cases, which is possibly only missed in the later case.
Also, the fact that the law has yet not been amended to reverse the tribunal decisions, can also be taken in support of this argument.
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