INDRAJEET SURESH MAGAR,KOLHAPUR vs. INCOME TAX OFFICER, KOLHAPUR

The assessee has raised the following grounds of appeal :- “1. Incorrect Assessment Year: The sale of the property on 12.04.2018 should be taxable in AY 2019-20, but it has been incorrectly assessed in AY 2018- 19 by the Assessing Officer. 2. Proportional Taxation: The assessee's ownership is only 50%, and hence the capital gain should be taxed proportionately. The Assessing Officer has failed to account for this.

Indexed Costs: The indexed cost of acquisition and improvement should be allowed as deductions. The Assessing Officer has not correctly calculated these indexed costs The purchase price of the property purchased on 10.06.2011 is Rs. 36,05,500/-. The indexed cost of purchase should be allowed as a deduction. The purchase price should include stamp duty & registration paid Rs. 1,94,600/-. The indexed cost of purchase should be allowed as a deduction. The purchase price should include service tax, VAT & other charges paid for purchase deduction. Rs. 1,11,875/-. The indexed cost of purchase should be allowed as a deduction. The cost of improvement of the property in FY 2012-13 is Rs. 10, 06,823/-. The indexed cost of improvement should be allowed as a deduction. Total Deduction Particulars Cost of Acquisition/ Improvement Year Index Indexed Cost of Acquisition/Improve ment F.Y. 2019-20 Cost of Flat 36,05,500/- 2011-12 184 54,86,630/- Stamp Duty Registration 1,94,600/- 2011-12 184 2,96,130/- Service Tax and VAT and Other 1,11,875/- 2011-12 184 1,70,246/- Cost of Improvement 10,06,823/- 2012-13 200 14,09,554/- Total 73,62,560/-

Incorrect Tax Calculation: The tax on long-term capital gain should be calculated as capital gain – ((maximum amount not chargeable to tax i.e. 2,50,000 – interest income)) * 20%. The Assessing Officer has used an incorrect formula. 5. TDS and Advance Tax Credit: TDS on property and interest, as well as advance tax paid, should be given credit in the correct assessment year, i.e. AY 2019-20. TDS on property of rs.74,000/- reported by the buyer in AY 2018-19 should be given credit in the year the properly is taxed, i.e. AY 2019-20.”

Briefly stated the facts as culled put from the statement of facts filed along with Form 36 are that the assessee is a Non-Resident Indian (“NRI”) and presently residing along with his family and parents in Australia. He visits India very rarely and since pandemic he has last visited India in the month of July 2023. For AY 208-19, the assessee did not file his return of income. Based on the information flagged by the Department under the category of NMS regarding the sale of immovable property by the assessee, the Ld. Assessing Officer (“AO") issued a show cause notice u/s 148A(b) on 19/03/2022 seeking clarification as to why Return of Income has not been filed by the assessee, in response to which the assessee had given a submission stating that he resides in Australia and has not filed the return of income as his income from India was below the taxable limit. Also, he had no documentary evidences available with him at that point of time as the same