Wrong Section, Wrong Valuation – ITAT Quashes Capital Gains Assessment

Renee Josephine Jaganathan Vs ITO (ITAT Chennai) The assessee, a non-resident, faced substantial capital gains additions after the AO rejected the declared cost of construction and adopted State PWD rates, also splitting the transaction into LTCG (land) and STCG (building). Before the Tribunal, it was highlighted that the AO made a reference to the DVO under section 142A, while simultaneously invoking section 55A in the order—showing clear inconsistency and non-application of mind. The ITAT held that section 55A (specific provision for capital gains valuation) overrides section 142A (general...