Baraiya Galaji Kalaji Vs ITO (ITAT Ahmedabad)
Sale Price Is Not Capital Gain & Penalty Cannot Outlive Its Foundation: ITAT Restores ₹2.10-Crore Addition & ₹69.45-Lakh Penalty
Delay of 42 Days Condoned
The assessee filed separate appeals concerning the quantum addition & penalty u/s 271(1)(c). Both appeals were delayed by 42 days.
It was explained that the assessee was an agriculturist suffering from poor health & possessed limited knowledge of legal and taxation matters. The explanation was supported by an affidavit.
Considering the circumstances & larger interest of justice, the Tribunal held that the delay deserved to be condoned. Both appeals were accordingly admitted for adjudication on merits.
Property Sales Trigger Reassessment
The assessee was an individual engaged in agricultural activities. Information available with the Department indicated that he had sold immovable properties for an aggregate consideration of ₹2,10,18,000 during AY 2015-16.
Since no return of income had originally been filed, the AO formed the view that taxable capital gains arising from the property transactions had escaped assessment.
An order u/s 148A(d) was passed on 31.03.2022, followed by notice u/s 148. The assessee uploaded a return for AY 2015-16 on 28.04.2022 in response to the notice. However, as the return remained electronically unverified, the AO did not treat it as a valid return or compliance with the reassessment notice.
