Case Law Details
Jigneshbhai Kishorbhai Bhajiyawala (HUF) Vs ITO (ITAT Surat)
Held that no part consideration of acquisition of asset/property was paid on alleged execution of possession-cum-Satakat and there is no other corroborative evidence to substantiate the claim of assessee. Capital gain treated as STCG instead of LTCG.
Facts-
The assessee has claimed deduction u/s. 54. The assessee furnished necessary working and the evidences to support her claim. On further verification of facts the AO his view that the gain earned on sale of property under reference is short term capital gain (STCG) and not long term capital gain (LTCG). Resultantly, the capital gain of assessee having 1/8th share of Rs. 24,75,000/- out of total sale consideration of Rs. 1.98 crore. Thus, the deduction claimed under Section 54 of the Act is erroneous as it is clear that it is not a case of LTCG but it is a case of STCG.
CIT(A) also confirmed the addition holding that unregistered Satakat is nothing but a fabricated document to avail the benefit of LTCG. Being aggrieved, the assessee preferred the present appeal.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
