Smt. Mrunalini Kalagara Vs ITO (ITAT Hyderabad)
Hyderabad ITAT: Registered Sale Deed Triggers Capital Gains Despite Dispute; Matter Remanded Only for Correct Computation of Cost
Summary: The Hyderabad ITAT partly allowed the assessee’s appeal for statistical purposes. It held that the transfer of immovable property through a valid registered sale deed constituted a “transfer” under Section 2(47) and attracted capital gains tax under Section 45. The Tribunal rejected the assessee’s contention that no capital gains arose on the ground that the sale deed was executed under coercion and no sale consideration was actually received, observing that the assessee had acknowledged receipt of consideration in the registered sale deed and no cogent evidence was produced to support the subsequent plea, while pending criminal proceedings did not negate the taxability of capital gains. The Tribunal dismissed the assessee’s legal challenges relating to limitation, absence of DIN, non-faceless assessment, and non-issuance or non-service of notice under Section 143(2). However, it found that the Assessing Officer had adopted the cost of acquisition without explaining the basis and, since neither party could justify the computation, restored the issue of computation of long-term capital gains to the Assessing Officer for fresh verification and recomputation after providing the assessee an opportunity of being heard.
