Smt. Padmaja Gavini Vs ITO (ITAT Hyderabad)
The appeal before the Income Tax Appellate Tribunal (ITAT) Hyderabad concerned the assessment of Smt. Padmaja Gavini for the Assessment Year (A.Y.) 2009–10, arising from the revisional order passed by the Commissioner of Income Tax (CIT)-II, Hyderabad under Section 263 of the Income Tax Act, 1961. The CIT held that the assessment order passed by the Assessing Officer (AO) was erroneous and prejudicial to the interests of the Revenue and directed the AO to re-do the assessment.
The assessee, an individual, had filed her return of income declaring ₹1,82,630, which included income from house property, long-term capital gains, and other sources. During the scrutiny assessment under Section 143(3), the AO examined the records and accepted the returned income. Later, on perusal of the records, the CIT observed that the assessee had purchased a semi-furnished flat at Yousufguda, Hyderabad, for ₹6,81,000 on 29 May 2005, along with a development agreement worth ₹2,46,000 with M/s Vijay Krishna Promoters. The flat was sold on 17 December 2008 for ₹28,00,000, and an additional ₹23,50,000 was received for fixtures and fittings under a separate agreement. The assessee declared ‘nil’ long-term capital gain after claiming exemption under Section 54 on the entire sale proceeds.
