Case Law Details
Arijit Chakraborty Vs ITO (ITAT Kolkata)
The case of Arijit Chakraborty vs ITO before the ITAT Kolkata pertains to the computation of capital gains on the sale of property in the financial year 2004-05. The dispute revolves around the valuation of the property and whether the sale price was justified.
The Assessing Officer (AO) referred the matter to the Departmental Valuation Officer (DVO) who estimated the market price of the property at Rs. 73,26,350. However, the assessee sold the property for Rs. 30,00,000, citing continuous harassment by certain individuals preventing peaceful use and enjoyment of the property. The High Court remanded the matter to the ITAT for further examination.
The ITAT reviewed evidence presented by the assessee, including complaints to authorities and newspaper clippings, demonstrating the interference faced. Convinced that the sale was a distress sale due to prolonged harassment, the ITAT ruled in favor of the assessee, deleting the addition made by the AO based on the DVO’s report.
Additionally, it was noted that the appeal by the revenue was already decided in favor of the assessee on other issues, rendering the restoration of the appeal by the Registry incorrect. As a result, the appeal of the revenue was dismissed as infructuous.
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