Case Law Details
Sureshbhai Ashwinbhai Patel Vs ITO (ITAT Ahmedabad)
The case of Sureshbhai Ashwinbhai Patel Vs ITO, heard by Income Tax Appellate Tribunal (ITAT) in Ahmedabad, provides crucial insights on the taxation of gains from jointly owned property. This case signifies that the entire consideration from such a sale cannot be treated as the long-term capital gain of a single co-owner.
Analysis:
The appeal, initiated by the Assessee against an order from the CIT(A), revolved around the sale of a jointly owned property. The Assessee contended that the property was co-owned with his son, Sureshchandra Ashwinbhai Patel, and thus the total consideration of Rs. 16,00,000/- from the sale should be distributed equally between them.
However, the Assessing Officer had previously considered the entire amount as the Assessee’s undisclosed income for the Assessment Year 2011-12, leading to a tax imposition. The Assessee appealed this decision, but the CIT(A) dismissed it. In his defence, the Assessee highlighted his old age and the unfortunate demise during the litigation, which hindered his response to the issued notices.
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