Under section 50C of the Income Tax Act the Income Tax Appellate Tribunal (ITAT) Bangalore, has eliminated the addition performed by the revenue department.
The taxpayer Ayi Vaman Narasimha Acharya has furnished the income return 
Easy guide to file income tax return for the FY (financial year) 2019-20. Also, we added the document checklist related to Personal, Income, tax, bank, real estate, investment mentioning the income of INR 8,83,160 for Assessment Year 2011-12. under section 143(1) the return was accepted and then the assessment was reopened under section 148.
The cause behind that is the taxpayer has sold out the two shops at Cavalry Road, Bangalore under a sale deed for a sale consideration of INR 32,27,010. The value which has been embraced through the enrollment authority for the goal of stamp duty and enrollment charges that is as of the regulations was INR 57,80,325. The taxpayer had not mentioned the capital gain on the sale of the property and thus the assessing officer does the proceedings for a recheck to see the capital gain that is deprived under assessment.
The taxpayer has done the sale deed on 10/08/2019 and was presented towards the enrollment. Since the issue of the parties has been raised through the enrollment of the authorities for the goal of the stamp duty and enrollment upon INR 57,80,325. The stamp duty as needed by the enrollment authorities dated 26/06/2010 and the credentials were enrolled on 26/06/2010. Since the sale deed was implemented on 10/08/2009 that comes beneath the FY 2009-10 with respect to the AY 2010-11 the taxpayer contended that the capital gain in the question will not be conducted in the AY 2011-12.
Vice President N.V. Vasudevan allowed the appeal filed through the taxpayer and directed that “The decision referred to by the learned DR in the case of J.Appa Rao(supra) is a case where it was held that applicability of the provisions of Sec.50C of the Act is mandatory w.e.f .1-4-2003. This decision does not in any way support the case of the revenue regarding the year in which capital gain is liable to be taxed. For the reasons given above, I hold that the capital gain in question cannot be brought to tax in Assessment Year 2011-12. The Revenue authorities erred in bringing to tax the capital gain in Assessment Year 2011-12. The addition made by the AO is accordingly directed to be deleted.”
