ASHWIN VARDHICHAND SHAH,MUMBAI vs. INCOME TAX OFFICER 15(1)(4), MUMBAI

This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)/(NFAC), Delhi dated 26.06.2023 for the assessment year 2011-12.

The main grievance of the assessee is against the action of the Ld. CIT(A) confirming the capital gain of Rs.71,07,480/- u/s 50C of the Income Tax Act, 1961 (hereinafter “the Act”).

Brief facts are that the assessee filed his return of income declaring total income of Rs.1,95,308/- on 04.07.2011 which was processed u/s 143(1) of the Act. Later, the case of the assessee was selected for scrutiny under CASS. According to the AO, the assessee is an individual having business income from proprietorship concern namely M/s. Hi Tech Business Centre, income from other sources, 2 A.Y. 2011-12 Ashwin Vardhichand Shah Short Term Capital Gain (STCG) on sale of shares. According to the AO [from perusal of the ITD details] he came to know that assessee is co-owner of tenancy rights; and in this year, assessee had entered into a tenancy agreement of two flats/building, which had a market value of Rs.31,60,080/- and Rs.39,47,400/- (total Rs.71,07,480/-). Further, according to him, as per AIR information, he noted that the assessee had entered into sale of property which was jointly owned by him with three others on 17.01.2011 for a consideration of Rs.39,47,400/- and Rs.31,60,080/- respectively. So, he issued show cause notice to the assessee as to why the same should not be treated as capital gain, since the