Case Law Details
Sudha Karbhari Nagre Vs ITO (ITAT Pune)
Explore ITAT Pune’s decision in Sudha Karbhari Nagre vs ITO case. LTCG addition on property sale contested. Timeliness, ownership, and re-assessment issues analyzed. Order dated 30th October 2023.
In a recent decision, the Income Tax Appellate Tribunal (ITAT) Pune heard the appeal of Sudha Karbhari Nagre against the order dated 01.02.2023, passed by the Commissioner of Income Tax (Appeals) [CIT(A)] in the National Faceless Appeal Centre (NFAC), Delhi. The appeal was related to the assessment year 2011-12 and primarily contested the addition of Rs.3,78,420/- towards Long-Term Capital Gains (LTCG) on the sale of a residential house. The ITAT Pune’s order, dated 30th October 2023, sheds light on the key issues and the Tribunal’s findings.
Background: The appellant, Sudha Karbhari Nagre, failed to file her return of income for the relevant assessment year. The Assessing Officer (AO) received information suggesting that the appellant had suppressed LTCG on the sale of a property. Subsequently, a notice under section 148 of the Income-tax Act, 1961, was issued. In response, the appellant did not disclose any LTCG on the property transfer, claiming that her husband was the one who had transferred the property.
During the assessment proceedings, the AO examined the registered agreement for sale and found that the appellant was the absolute owner of a 50% share in the property. The appellant eventually agreed to the addition towards LTCG, subject to the benefit of indexation. The AO, treating half of the sale consideration as the appellant’s share, after deducting the indexed cost of acquisition, calculated the LTCG at Rs.3,78,420/-. Dissatisfied with this decision, the appellant appealed to the CIT(A) and subsequently to the ITAT Pune.
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