ANITHA MYADAM,HYDERABAD vs. INCOME TAX OFFICER, WARD-7(1), HYDERABAD

Facts

The assessee sold an immovable property and did not disclose the long-term capital gain (LTCG). The AO initiated proceedings under Section 147, considering the sale consideration as LTCG. The assessee claimed she was a consenting party as a legal heir to avoid future litigation, not the actual owner.

Held

The Tribunal held that the assessee's claim that she was merely a consenting party as a legal heir to avoid litigation needs verification. While the sale deed received the entire consideration by parties Sl. 1 to 12, the assessee's inclusion as a vendor needs to be examined against the original partition deed.

Key Issues

Whether the assessee, appearing as a vendor in a sale deed, is liable for capital gains tax when she claims to be a consenting party as a legal heir and not the actual owner, requiring verification of ownership and purpose of inclusion.