RASHDA SIDDIQUI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS writ petition is directed against the order dated 25.03.2013 passed by the Commissioner of Income Tax under Section 264 of the Income Tax Act, 1961 (herein after referred to as 'the said Act').

(2.) THE only issue that is raised in this petition pertains to the Assessment Year 2006 -07 and is with regard to a painting which was sold by the petitioner/assessee in the year ending 31.03.2006. The painting was sold by the petitioner/assessee for a sum of Rs.34 lacs. The painting had been acquired by the assessee prior to 01.04.1981 and, therefore, the value of the painting as on 01.04.1981 was taken and indexed upto the date of the sale to compute the indexed cost of acquisition at Rs.16,15,250/ -. When the petitioner/assessee filed her return of income, she included this computation and disclosed long term capital gains of Rs.17,84,750/ -, being the difference between the sale price and the indexed cost of acquisition. On the said amount, she paid tax of Rs.3,66,434/ - and interest of Rs.75,852/ - totalling to Rs.4,42,286/ - on account of tax and interest.

(3.) FOR the assessment year 2006 -07 (i.e., prior to 01.04.2008), Section 2(14), to the extent relevant for our purposes, read as under: -