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Facts
The assessee filed an appeal against the order of the CIT(A) which confirmed an addition of Rs. 11,33,57,500/- on account of Long Term Capital Gain. The assessee claimed to have never owned the properties and had only executed an agreement to regularize the title.
Held
The Tribunal found that the revenue authorities had not examined the issue in the correct perspective. The assessee requested an opportunity to furnish all necessary details. Therefore, the Tribunal set aside the CIT(A)'s order and restored the matter to the Assessing Officer for a fresh assessment.
Key Issues
Whether the addition on account of Long Term Capital Gain was justified when the assessee claimed no ownership or sale of the properties?
Sections Cited
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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
This appeal is filed by the Assessee against the appellate order dated 04.07.2025 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2018-19.
The assessee has raised the followings grounds of appeal:
In facts & Circumstances of the case, Your Appellant, most respectfully submits that the Ld. CIT(A) has erred in law and on facts by confirming the addition in respect of Rs.11,33,57,500/-on account of Long Term Asst. Year : 2018-19 - 2– Capital Gain by not considering the fact & documents provided that the appellant Association was never owner of the said properties and also not made any payments at the time of purchase of properties nor received any consideration on transferring name on revenue record. The Ld. CIT(A) had further erred to appreciate the fact that your appellant had executed the agreement to regularize the title of the land by transferring the same to its real owners and had not actually sold any property to them during the year under consideration. The appellant craves to add, to alter, to substitute, to amend any ground/grounds of appeal at any time or at the time of hearing of the appeal if occasion arises.
3. In this case ex parte order has been passed by the Assessing Officer and the Ld.CIT(A) dismissed the appeal of the assessee by observing as under: “ as not maintainable as per facts available on record on merits and on consideration of appellant’s submission as appellant failed to adduce any such supporting proofs/evidences as attributable to such contentions as involving no attributable ownership/receipts etc to the appellant in transfer of properties contrary to the findings of AO as reasoned and explained above”.
From the records we find that the revenue authorities have not examined the real issue in right perspective. Before us, the Ld. Counsel for the assessee prayed that, given an opportunity, all necessary details, clarifications, and explanations would be furnished to the Revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer for de novo assessment. The assessee shall submit all the relevant bank statement/submission/document before the Assessing Officer and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments.