SANAM MEHRA,PATNA vs. ITO WARD 1(2) PATNA, PATNA

ITA 488/PAT/2025Status: DisposedITAT Patna29 September 2026AY 2017-186 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee's appeal was against the order of the CIT(A) which dismissed the assessee's appeal against the AO's order. The AO had made additions under Section 50C and Section 68. The assessee's grounds of appeal challenged these additions, alleging lack of opportunity and that the orders were based on presumption and perversity. The learned counsel for the assessee reiterated submissions made before the lower authorities. The judgment, however, does not contain the Tribunal's decision or reasoning on the issues raised. It appears to be an incomplete excerpt, as it ends mid-sentence while describing the assessee's counsel's submissions. Therefore, the Tribunal's findings, ratio, and operative directions are not ascertainable from the provided text.

What were the facts?

The assessee, Sanam Mehra, filed an appeal against the order of the CIT(A) for Assessment Year 2017-2018. The CIT(A) had dismissed the assessee's appeal against the assessment order passed by the Assessing Officer (AO). The AO had made an addition of Rs. 39,40,750/- under Section 50C of the Income Tax Act, 1961, on account of short-term capital gain from the sale of land. Additionally, the AO made an addition of Rs. 75,00,000/- under Section 68 of the Act for unexplained cash credits. The assessee had jointly sold 11.516 decimals of land for Rs. 1,58,45,500/-, while the stamp duty value was Rs. 2,37,28,000/-. The AO considered the assessee's 50% share of the stamp duty value as the sale consideration. The assessee also received gifts totaling Rs. 74,00,000/- which could not be substantiated.

What were the issues?

1. Whether the AO erred in applying Section 50C of the Act by considering the stamp duty value as the sale consideration for the land sold, without properly considering the sub-sections and provisions of the said section? 2. Whether the AO erred in making an addition of Rs. 75,00,000/- under Section 68 of the Act for unexplained cash credits, specifically relating to gifts received by the assessee and her spouse? Assessee's Contentions: The assessee argued that the AO erred in applying Section 50C without properly examining its provisions and facts. The assessee also contended that the addition under Section 68 was made without sufficient opportunity to present evidence and was based on presumption and conjecture. The assessee's counsel reiterated submissions made before lower authorities. Revenue's Contentions: The judgment does not explicitly record the revenue's contentions.

Which sections of the Income-tax Act were involved?

Section 50C,Section 68,Section 143(3),Section 250,Section 115BBE,Section 271AAC,Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

Before: SHRI GEORGE MATHAN & SHRI LAXMI PRASAD SAHU

For Appellant: Shri Abhi Sarkar, Advocate
For Respondent: Shri Ravi Kant Chowdhary, Sr. DR
Hearing: 21.09.2026Pronounced: 29.09.2026

PER LAXMI PRASAD SAHU, AM: This is an appeal filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as ‘the ld. CIT(A)’], dated 27.12.2019 vide DIN No. ITBA/AST/S/143(3)/2019-20 /1023211102(1), arising out of assessment order by the Assessing Officer (In short, ‘the AO’) passed u/s 143(3) of the Act, dated 27.12.2019, challenging the addition towards short-term capital gain (STCG) for Rs.39,40,750/- u/s 50C of the Act and addition of Rs.75,00,000/- u/s 68 of the Act on the following grounds of appeal:

“1. For that the g

The order continues below.

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