Sasihithlu Venkateshi Srilakshmiprasad Vs ITO (ITAT Bangalore)
Sale Price Is Not Capital Gain in Disguise: ₹63-Lakh Property Consideration Cannot Be Taxed Without Land & Construction Cost—Bangalore ITAT Condoned 119-Day Delay
Property Sale Detected in the Case of a Non-Filer
The assessee had not filed her return of income for AY 2016-17. Information available with the Department indicated that she had sold an immovable property for ₹63,00,000.
Since she was a non-filer, the AO initiated proceedings by issuing notice u/s 148A. The assessee did not respond. Notice u/s 148 was thereafter issued on 21.03.2023.
During reassessment, the AO issued notices u/s 142(1), requiring the assessee to furnish the computation of capital gain & supporting particulars. No response was received.
The AO independently issued notice u/s 133(6) to the purchaser & obtained a copy of the sale deed. In the absence of any explanation from the assessee, the entire sale consideration of ₹63 lakh was added as unexplained income/short-term capital gain.
The assessment was completed ex parte u/s 147 r.w.s. 144 & 144B on 21.03.2024, determining total income at ₹63 lakh.
No Cost of Land or Construction Allowed
The assessee subsequently explained that she was a housewife who had purchased a site during 2014, constructed a seven-square duplex residential house & sold it on 21.03.2016.
