SUDIP KUMAR GHOSH ,KOLKATA vs. DCIT, CIRCLE - 11, KOLKATA , KOLKATA

This assessee’s appeal for assessment year 2008-09 is directed against the CIT(A)- 11, Kolkata’s order dated 11.04.2018 passed in case no. 652/CIT(A)-11/C-11/14- 15/Kol involving proceedings u/s 143(3) of the Income Tax Act, 1961 ( in short the ‘Act’). Heard both the parties. Case file perused.

The assessee’s only grievance canvassed before me during the course of hearing is that both the lower authorities have erred in law and in facts in adding long term capital gains amounting to Rs. 7,09,000/- on sale of land and flat during the course of assessment as confirmed in lower appellate proceedings. The CIT(A)’s detailed discussion to this effect read as under: “I have carefully considered the Assessment Order, the Grounds of appeal, Statement of facts, submissions made during the appellate proceedings and the arguments of the ld. AR. The facts of the case are that during the assessment proceedings the A.O. notes that the appellant had not shown Long Term Capital Gains in his Return of Income and had also not claimed any exemption. This was so because the appellant had made an Sudip Kumar Ghosh A.Yr. 2008-09 investment in purchase of a new flat after selling his old flat and the investment in purchase of new flat is higher than the capital gains on sale of old land and flat. As a result, no claim of deduction u/s 54 was made by the appellant in his Return of Income. While examining this issue, the A.O has stated in his assessment order as under: “ On examination of the details furnished by the AR it is found that during the year the assessee has long term capital gains of Rs.2,40,000/- on sale of land and RS.4,69,000/- on sale of flat. These capital gains have not been shown in the return. On being asked regarding this non-disclosure, the AR submitted that during the year the assessee purchased a new flat at the cost of Rs.39,00,000/- including registration and other expenses. As the new flat purchased is a residential property, the assessee has not shown long term capital gains as its income as the same would be exempt from tax. The submission of the A/R is found not acceptable. The return of income contains specific column for capital gains and also in its schedule, the assessee is required to give complete details in respect of cost of acquisition, full value of consideration on sale, capital gains thereof and the amount of capital gains claimed as exempt u/s. 54/54B/54 D/54 EC/54 F. On perusal of the return no such details are found to have been given by the assessee. Injrds, the assessee has not made any claim for exemption in the return of income. and moreover he has not disclosed in the return that there was any capital gains during the year. In the event of such facts and circumstances of the case, the assessee's claim rejected and the long term capital gains aggregating to Rs.7,09,000/- is charged to tax. Penalty proceedings u/s. 271(1 )( c) read with Explanation 1 to the section are separately initiated for having furnished inaccurate particulars of income."

This assessee’s appeal is partly allowed for statistical purposes in above terms.