Unverified Sale Consideration Details: ITAT Remands Capital Gain Addition Matter for Reconsideration [Read Order]
The Tribunal has remanded back to the CIT(A) for proper adjudication and directed verification of the sale consideration details related to a capital gain addition of Rs. 30,09,925.
![Unverified Sale Consideration Details: ITAT Remands Capital Gain Addition Matter for Reconsideration [Read Order]](https://images.taxscan.in/h-upload/2025/08/13/2076364-capital-gain-addition-taxscan.webp "Unverified Sale Consideration Details: ITAT Remands Capital Gain Addition Matter for Reconsideration [Read Order]")
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) remanded the matter for fresh adjudication and directed the CIT(A) to verify the assessee’s claims regarding the sale consideration of an immovable property, which led to additions of Rs. 30,09,925 as capital gain. Shivprakash Ramcharan Sharma (assessee) filed his income tax return for AY 2012-13 declaring a total income...
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) remanded the matter for fresh adjudication and directed the CIT(A) to verify the assessee’s claims regarding the sale consideration of an immovable property, which led to additions of Rs. 30,09,925 as capital gain.
Shivprakash Ramcharan Sharma (assessee) filed his income tax return for AY 2012-13 declaring a total income of Rs. 1,87,040. The Assessing Officer (AO) received information that the assessee had sold an immovable property for Rs. 30,09,925.
However, the stamp value of the property was Rs. 41,20,925, and the assessee paid a stamp duty of Rs. 2,02,000. The AO reopened the case under Section 147 citing Section 50C, which deems the stamp value as the sale consideration for tax purposes if it exceeds the declared value,and issued a notice under Section 148 of the Income Tax Act.
Want a deeper insight into the Income Tax Bill, 2025? Click here
During the assessment proceedings, the assessee did not comply with the notices, leading to an ex-parte assessment order. The AO determined the total assessed income at Rs. 43,07,965, making additions of Rs. 11,11,000 for the difference in sale consideration under Section 50C and Rs. 30,09,925 for capital gain not offered for tax.
Aggrieved by the AO’s order, the assessee appealed to the Commissioner of Income Tax (appeals) [CIT(A)]. The CIT(A) upheld the AO’s additions. Aggrieved by the CIT(A)’s order, the assessee then appealed to the ITAT.
The assessee’s grounds of appeal challenged the reopening of the assessment under Section 147 and the additions made by the AO. The assessee claimed that the sale deed fixed the initial consideration at Rs. 11,11,000, with Rs. 1,75,000 received on 23-01-2003 and further amounts received between 23-01-2003 and 09-05-2011.
The Two-member bench, comprising Dr. B.R.R. Kumar (Vice President) and Suchitra Kamble (Judicial Member), observed that the assessee’s claims regarding the sale consideration required verification.
How to Audit Public Charitable Trusts under the Income Tax Act Click Here
The Tribunal noted the lack of documentary evidence but emphasized the need for proper adjudication of the sale deed details mentioned in Form 35. It remanded the matter to the CIT(A) with directions to verify the sale consideration details and adjudicate the additions on merit as per the Income Tax Act.
The tribunal instructed the assessee to submit relevant documents before the CIT(A). The appeal of the assessee was partly allowed for statistical purposes
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
