INCOME TAX OFFICER WARD 2(4), PUNE, SWARGATE vs. MANGAL BALASAHEB GOLE, KOTHRUD

Facts

The assessee sold agricultural land, reporting long-term capital gains and claiming a deduction under Section 54B. The Assessing Officer disallowed Rs. 3,05,76,548/- from the cost of acquisition due to inadequate explanation. The CIT(A) subsequently deleted this disallowance.

Held

The Tribunal observed that the CIT(A) deleted the addition without seeking a remand report or allowing the Assessing Officer to verify the additional documents. Consequently, the case is remanded to the Assessing Officer to provide the assessee a final opportunity to substantiate the cost of acquisition and re-decide the issue as per law.

Key Issues

Justification of the CIT(A)'s deletion of disallowance of cost of acquisition without a remand report, and the assessee's failure to furnish proper documentary evidence for the claimed cost.