Kaushalya Devi Vs ITO (ITAT Kolkata)
Kolkata ITAT Remands Capital Gains Tax Dispute for Fresh Hearing
The Income Tax Appellate Tribunal (ITAT) Kolkata Bench has set aside an ex-parte order issued by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, in the case of Kaushalya Devi Vs ITO. The Tribunal has remitted the matter back to the CIT(A) for a fresh adjudication, emphasizing the principle of natural justice and providing the assessee another opportunity to present her case.
Background of the Case: Undeclared Capital Gains
The dispute pertains to the Assessment Year 2015-16. The assessee’s case was re-opened by the Income Tax Officer (ITO) based on information obtained from the Registrar of Properties in Patna District. This information, requisitioned under Section 133(6) of the Income Tax Act, 1961, revealed that the assessee, Kaushalya Devi, had entered into a registered land development agreement in the Financial Year 2014-15 with M/s Azalfa Building Construction Pvt. Ltd., Patna (referred to as “The Developer”).
Under the terms of this agreement, the assessee, as the land owner, transferred ownership rights of her land in exchange for a portion of the constructed property. The remaining portion of the constructed property was apportioned to the developer to cover the cost of development. Such arrangements are typically subject to capital gains tax.
