DATAPRO COMPUTERS PRIVATE LIMITED,VISAKHAPATNAM vs. DCIT/ACIT, CIRCLE-3(1), VISAKHAPATNAM

ITA 813/VIZ/2025Status: DisposedITAT Visakhapatnam21 August 2026AY 2018-198 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's argument that the sale consideration was likely subsumed in the total revenue recognized. However, due to the assessee's failure to provide sufficient reconciliation, the issue was remitted back to the AO for further verification.

What were the facts?

The assessee company sold an immovable property for Rs. 90,00,000/-. The Assessing Officer (AO) made an addition of Rs. 90,00,000/- under the head 'short term capital gain' as the assessee could not adequately explain how the sale consideration was accounted for. The assessee claimed it was part of business income recognized under the percentage completion method.

What were the issues?

Whether the sale consideration of an immovable property, when the assessee follows the percentage completion method for revenue recognition in its real estate business, should be treated as short-term capital gain or is already included in business income. The adequacy of evidence provided by the assessee to support its claim.

Which sections of the Income-tax Act were involved?

Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Pronounced: 21.08.2026

PER SHRI MANJUNATHA G., ACCOUNTANT MEMBER:

This appeal is filed by the Assessee against the order of Ld. CIT(A), NFAC, Delhi vide DIN: ITBA/NFAC/S/250/2025- 26/1081772547(1) dated 15.10.2025 for the Assessment Year 2018- 19. 1 Datapro Computers Private Limited

2.

The brief facts of the case are that the assessee company filed its return of income for the A.Y.2018-19 on 28.09.2018, declaring total income of Rs.2,35,06,270/-. The case has

The order continues below.

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