Facts
The assessee failed to file a return of income for AY 2015-16. Following a survey, it was found that the assessee had entered into a joint development agreement and sold flats, leading to capital gains. The Assessing Officer (AO) recomputed the cost of acquisition and made additions, which were upheld by the CIT(A).
Held
The Tribunal held that the cost of acquisition of land, once accepted by the department for a previous assessment year (AY 2013-14) based on SRO value, should be followed for subsequent years if there is no change in facts. The AO erred in adopting a different cost, and consequently, the additions made by the AO and sustained by the CIT(A) were directed to be deleted.
Key Issues
Whether the AO can deviate from a previously accepted cost of acquisition for capital gains computation in the absence of changed facts, and whether the delay in filing the appeal should be condoned.
Sections Cited
133A, 147, 148, 143(3), 263, 144
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