Allowing the petition the Court held that the revenue’s objection of difficulty in computing the indexed cost of acquisition was not raised by the AO in the reasons recorded. Court cannot allow the AO to improve upon the reasons in order to support the notice of reassessment. Court also held that execution of sale deed by virtue of the judgement of the High Court would relate back to the original agreement to sale, and the assessee is entitle to claim the benefit of cost of indexation from the said date. Followed Hindustan Lever Ltd v. R.B. Wadkar (2004) 268 ITR 332 (Bom.)(HC), Sanjeev Lal & Ors v CIT (2014) 269 CTR 1 (SC) (AY.2013-14)
Amarjeet Thapar v. ITO (2019) 173 DTR 305 /261 Taxman 23 / 306 CTR 325/ 411 ITR 626(Bom.)(HC)
S. 147 : Reassessment-Non-existent reason-Indexation cost was raised in the recorded reason–Court cannot allow the AO to improve upon the reasons in order to support the notice of reassessment- Execution of sale deed by virtue of the judgement of the High Court would relate back to the original agreement to sale, and the assessee is entitle to claim the benefit of cost of indexation from the said date. [S. 2(47), 45, 48, 148]