SH. SURESH BANSAL,NEW DELHI vs. DCIT, FARIDABAD

ITA 1186/DEL/2017Status: DisposedITAT Delhi02 September 2020AY 2008-094 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition was not called for as the property was sold on 11.04.2011, which falls in Assessment Year 2012-2013, not the assessment year under appeal (2008-2009). Therefore, capital gains could not be assessed in the current year.

What were the facts?

During a search, documents regarding property transactions were found. The assessee reported a loss on a property sale, but the AO calculated a capital gain of Rs. 1,19,682/- due to lack of evidence for improvements.

What were the issues?

Whether capital gains on property sale can be taxed in an assessment year prior to the actual date of sale, and if the assessee provided sufficient evidence for cost of improvements.

Which sections of the Income-tax Act were involved?

Section 132(1)(A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “G” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI PRASHANT MAHARISHI

Hearing: 02.09.2020Pronounced: 02.09.2020

ORDER PER BHAVNESH SAINI, J.M.

This appeal by assessee has been directed against the Order of the Ld. CIT(A), Karnal, Dated 19.01.2017, for the A.Y. 2008-2009, challenging the addition of Rs.1,19,682/- on account of long term capital gains on sale of property.

2 ITA.No.1186/Del./2017 Shri Suresh Bansal, New Delhi. 2. We have heard the Learned Representative of both the parties through video conferencing and perused the material available on record.

The facts of the case are that a search was conducted in the case of assessee under section 132(1)(A) of the I.T. Act, 1961, at the residential as well as business premises of M/s. SRS Group on 09.05.2012. During the course of search operation, documents regarding sale/ purchase of different properties were found. The assessee was required to file the details. The assessee filed calculation of capital gain for the property situated in Ward- 9, Near Ambedkar Chowk, Mohana Road, Ballabgarh showing loss of Rs.2,025/- on the said transaction. The said property was purchased on 27.01.2003 for a total value of Rs.2,55,000/- of which index cost comes to Rs.4,47,818/-. The assessee has not given any documentary evidence with regard to cost of improvement made in the property. The A.O. accordingly calculated the capital gain at Rs.1,19,682/- and made the addition accordingly. The Ld. CIT(A) dismissed the appeal of assessee.

3 ITA.No.1186/Del./2017 Shri Suresh Bansal, New Delhi.

After considering the rival submissions, we are of the view that addition is not called for in the matter. Learned Counsel for the Assessee referred to the reply filed before Ld. CIT(A) [pages 86-89 of PB] in which it was mentioned that the addition cannot be made in the assessment year under appeal i.e., 2008-2009 because the property in question was sold on 11.04.2011. Therefore, capital gain could be assessed only in A.Y. 2012-2013. The assessee also enclosed copy of the sale deed before the Ld. CIT(A), copy of which is filed at pages 68 to 71 of the PB. The said sale deed shows the date of sale as 11.04.2011. It would clearly show that property in question was sold in A.Y. 2012-2013, therefore, the same could not be subjected to capital gain in assessment year under appeal i.e., 2008- 2009. In this view of the matter, we set aside the Orders of the authorities below and delete the addition.

In the result, appeal of the Assessee allowed.

4 ITA.No.1186/Del./2017 Shri Suresh Bansal, New Delhi. Order pronounced in the open Court.

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