Capital gain tax inadvertently paid by wife needs to be refunded & recovered from assessee

Shrikant Ghanshyam Shah Vs Int Tax Ward (ITAT Mumbai)

ITAT Mumbai held that capital gain tax inadvertently paid by the wife needs to be refunded with interest and the same needs to be recovered from the assessee as the same transaction cannot be charged to tax twice.

Facts- AO received information from Income Tax Officer that assessee has sold two immovable properties during the year under consideration amounting to ₹.1,33,40,000/- and ₹.2,32,18,150/-. He observed that assessee has offered capital gain tax on transaction of ₹.2,32,18,150/- but did not offered the transactions of ₹.1,33,40,000/- in his return of income. Accordingly, he issued notice u/s.148 of Income-tax Act, 1961.

Assessee had stated that due to some error while submitting the return of income, one of the property sold by the assessee has been declared in his wife return and all the relevant taxes were paid in her account.

AO rejected the submissions made by the assessee and proceeded to make the addition in the hand of the assessee and accordingly, passed the draft Assessment Order u/s. 144C(1) of the Act. DRP sustained the addition. Being aggrieved, the present appeal is filed by the assessee.

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