The Jaipur bench of ITAT recently ruled that the addition in respect of Capital Gain Income can’t be made when Assessee not sold the property and just signed as a confirming party.
The bench including Vijay Pal Rao (JM) & Bhagchand, (AM) was considering the revenues’ appeal emanates from the order of the CIT (A) for the A.Y. 2008-09. The only issue involved in the appeal is deleting the addition of long term capital gain amounting to Rs. 87,75,759/-.
The bench upheld the findings of the first appellate authority that the capital gain income has been declared in the return of income of Smt. Gyanwati Dhakar, who has actually sold this property. The assessee has just signed as a confirming party.
It was therefore, held that the AO was not justified in making addition of Rs.87,75,759/- to the income of the deceased Seema Mukherjee through her legal heirs as long term capital gain as the property was not sold by Seema Mukherjee during the year under consideration and also opinioned that if any addition want to be made and that too under Section 50C of the Income Tax Act, it should have been made in the hands of Gyanwati Dhakhar and not in the hands of the appellant.
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