Naresh Kumar Shrivastava Vs ITO (ITAT Raipur)
In Naresh Kumar Shrivastava Vs ITO, the Income Tax Appellate Tribunal, Raipur adjudicated an appeal against the order of the Commissioner of Income-Tax (Appeals), NFAC, Delhi dated 01.05.2024, arising from reassessment under Section 147 read with Section 143(3) for Assessment Year 2008-09.
The assessee had originally filed his return declaring income of ₹90,000. The case was reopened under Section 147, and notice under Section 148 was issued on 27.03.2015. During assessment, the Assessing Officer (AO) noted that the assessee and five family members sold immovable property at Labhandi, Raipur for ₹1,30,50,000. The assessee’s 1/6th share was offered as Long Term Capital Gain (LTCG), and deduction under Section 54F was claimed.
For stamp duty purposes, the Sub-Registrar initially valued the property at ₹5,75,11,000. This valuation was upheld by the Collector of Stamp, later reduced by the Board of Revenue to ₹2,19,89,500, and remitted back by the High Court of Chhattisgarh for fresh determination. As the matter was pending at the time of assessment, the AO adopted ₹5,75,11,000 under Section 50C and computed LTCG accordingly, making an addition of ₹74,46,583.
On appeal, the CIT(A) observed that the Collector of Stamps had subsequently determined the final valuation at ₹1,60,31,000. LTCG was recomputed accordingly. The total LTCG worked out to ₹1,49,84,100, with the assessee’s 1/6th share being ₹24,97,350. After allowing exemption under Section 54F of ₹19,64,099, taxable LTCG was determined at ₹5,33,251. Relief of ₹69,13,333 was granted.
