Person to Pay LTCG on Property Sale, Bangalore ITAT Reverses Civil Court Order

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) asks for re-adjudication concerning Long Term Capital Gain of sold property which was cancelled by the civil court.

A petition was filed by the taxpayer Mangalagiri Tulasi before the tribunal against the order passed under section 250 of the Income Tax Act, 1961 for the taxability of a sum of Rs.1,01,39,166/- as long-term capital gains from the sale of land.

The taxpayer is not satisfied with the order and files a petition before the CIT(A). The appeal filed by the assessee gets dismissed by the CIT(A) due to non-compliance with the notice. After that, the taxpayer furnished a petition before the tribunal.

At the time of the adjudication Ravi Shankar, the taxpayer’s counsel claimed that the taxpayer was never in receipt of notices issued from the Office of the CIT(A) since it may have settled in the spam folder of the taxpayer’s email ID. Under section 148 r.w.s. 144 of the Act the assessment was completed and the taxpayer was never in receipt of the notices issued u/s 148 of the Act.

The taxpayer also claimed the property sale where the taxpayer has been made obligated for the long-term capital gains has been cancelled via the Civil court.

The orders of the AO and the CIT(A) have been supported by Nischal B, Department representatives.

Acknowledging this fact the tribunal noted that the taxpayer must be furnished a chance to prove her case that the property in question for which she is incurred obligated for long-term capital gains has not been sold / sale has been cancelled by the Civil Court.

The bench, George George K, (Vice President) and Chandra Poojari, (Accountant Member) examining the submission of both parties directs re-adjudication for Long Term Capital Gain of sold property which was cancelled through the civil court.