ITAT Pune Rejects Argument Against Long-Term Capital Gains Increase

Sudha Karbhari Nagre Vs ITO (ITAT Pune)

Facts:

1. The appeal relates to the assessment year 2011-12, challenging the addition of Rs. 3,78,420/- towards long-term capital gains on the sale of a residential house.
2. The Assessing Officer (AO) initiated reassessment proceedings as the assessee hadn’t disclosed the capital gains initially.
3. The registered agreement showed the assessee’s 50% ownership of the property sold.
4. The AO calculated the capital gains by considering half of the sale consideration as the assessee’s share and allowed indexation benefit.

Observations:

1. The Tribunal observed that the agreement for sale, where the assessee had a 50% share, was registered within the relevant assessment year.
2. The argument that the property was transferred in a subsequent year when the husband reported the entire sale consideration wasn’t valid, as the registration date constitutes the property transfer date.
3. The husband’s return, including the sale consideration, filed on 12.12.2014, was deemed invalid.
4. The assessee didn’t disclose the capital gains initially nor challenged the addition in the original or the first appeal.
5. The Tribunal found no merit in the argument against the initiation of reassessment proceedings.

Conclusion:

1. The Tribunal dismissed the appeal, stating that the addition of capital gains was rightly made and upheld.
2. As per the Tribunal, the assessee’s 50% ownership, the property transfer in the relevant assessment year, and the lack of disclosure in the original or reassessment return validated the addition of capital gains.

In essence, the Tribunal upheld the addition of capital gains as the property transfer, and the assessee’s ownership were within the relevant assessment year, and no disclosure was made initially or during reassessment proceedings.

Please follow and like us: