No Sale, No Gain: ITAT Sends ‘Imaginary Capital Gain’ Back for Fresh Verification

Shankar Rajashekar Vs ITO (ITAT Bangalore) Assessee, a civil contractor, filed his return &  the case was selected for scrutiny. AO noticed a deduction claimed u/s 54/54F, assumed that Assessee had sold a property, &  since no supporting details were furnished, he computed capital gains &  made additions. Assessee’s then representative had even submitted a copy of “sale deed” (actually agreement of sale) &  a computation including capital gains. Before CIT(A), Assessee took a completely different stand—he stated that no property was ever sold, &  the capital ga...