AO Cannot Tax Entire Sale Consideration as Capital Gain Without Allowing Cost of TDR: Bangalore ITAT

Udaya Kumar Chillakuru Vs ITO (ITAT Bangalore) The Bangalore ITAT held that while the assessee was entitled to deduction of the purchase cost of TDR rights under Section 48, the assessee’s repeated non-cooperation before the AO and CIT(A) justified restoration of the matter back to the AO subject to payment of costs. The Tribunal observed that once documents evidencing purchase of TDR rights were produced, the entire sale consideration could not be blindly taxed as capital gains without allowing the acquisition cost. The assessee had sold TDR rights for ₹72.90 lakh but failed to respond to...