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Facts
The assessee filed a return of income for AY 2016-17, which was assessed u/s 143(3), resulting in an addition of Rs. 8,95,491/- (capital gain) and disallowance of Rs. 49,96,412/- (long-term capital loss, LTCL). The CIT(A) confirmed the AO's action, prompting the assessee to appeal to the ITAT. The tribunal proceeded ex-parte as the assessee's representative failed to appear after multiple adjournments.
Held
The Tribunal upheld the order of the CIT(A), confirming the disallowance of the long-term capital loss claim of Rs. 49,96,412/- and the addition of Rs. 8,95,491/- on account of capital gain. The Tribunal noted the assessee's failure to substantiate the year of payment, prove ownership through a conveyance deed, and reconcile discrepancies related to the IT space transfer, thus finding no reason to interfere with the lower authorities' decisions.
Key Issues
Whether the lower authorities correctly confirmed the disallowance of long-term capital loss and related addition, specifically regarding the non-substantiation of payment and ownership details for the transferred IT space.
Sections Cited
115JB, 143(3)
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Income Tax Appellate Tribunal, DELHI BENCH “G”, NEW DELHI
Before: SHRI SHAMIM YAHYA, & SHRI SUDHIR PAREEK
The Assessee has filed the Appeal against the Order of the Ld. CIT(Appeal-8), New Delhi dated 14.06.2019, relating to assessment year 2016-17 on the following grounds:- 1. That on the facts and circumstances of the case and in the law the CIT(A) has grossly erred in confirming the disallowance of long term capital loss of Rs. 49,96,412/- as made by the AO which was claimed by the assessee in its Return of Income.
2. That on the facts and circumstances of the case and in the law the CIT(A) has grossly erred in confirming the addition of Rs. 8,95,491/- on account of long term capital gain as made by the AO.
3. That the appellant craves leave to add to and / or amend, modify or withdraw the grounds outlined above before or at the time of hearing of the appeal.
Briefly stated facts are that assessee has E-filed return of income on 04.10.2016, declaring income of Rs. 3,54,44,310/- (income declared u/s. 115JB at Rs. 3,48,05,925/-). The assessee’s case was taken up for scrutiny and assessment u/s. 143(3) of the Act was completed by the AO on 12.12.2018, determining assessed income at Rs. 3,63,39,800/- by making addition of Rs. 8,95,491/- on account of income from Capital Gain. Aggrieved with the aforesaid addition, assessee preferred appeal before the Ld. CIT(A), who vide his impugned order dated 14.6.2019 confirmed the action of the AO by dismissing the appeal of the assessee.
Aggrieved with the above order of the Ld. CIT(A), Assessee is in appeal before us.
We have heard the Ld. DR and perused the orders of the authorities below. 4.1 On perusal of the order sheets, it is noted that since 20.6.2022, the assessee’s AR is seeking adjournments time and again and last adjournment was sought on 4.6.2024 by the Ld. AR and the case was adjourned for 02.09.2024, on which date the Ld. AR again not appeared. In view of above, it is clear that assessee is not interested in prosecuting its appeal, hence, we are deciding the appeal of the assesse exparte qua the assessee in the subsequent paragraphs. 4.2 We find that the solitary issue involved in the instant appeal is the claim of Rs. 49,96,412/- as Long Term Capital Loss (LTCL) on transfer of IT space 2