Vijay Rai Marwaha Vs ACIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has partially allowed an appeal filed by assessee Vijay Rai Marwaha for the assessment year 2020-21. The appeal challenged the final assessment order dated June 23, 2023, issued by the Assessing Officer (ACIT, Circle Int. Tax 2(2)(1)) under Section 143(3) read with Section 144C(13) of the Income-tax Act, 1961. The core of the dispute revolved around the computation of capital gains from the sale of a property, specifically concerning the application of Section 50C and the determination of the cost of acquisition.
The assessee presented several substantive grounds of appeal. Primarily, the assessee denied liability for an assessed income of Rs. 37,30,983/- and contended that the Dispute Resolution Panel-II (DRP-2), Delhi, erred in confirming an addition of Rs. 4,26,562/-. This addition was linked to the difference in the total sale consideration.
A significant point of contention was the interpretation and application of Section 48 of the Act, which outlines the computation of capital gains. Section 48 states that income chargeable under “Capital gains” is computed by deducting expenditure incurred in connection with the transfer and the cost of acquisition and improvement from the full value of the consideration received.
