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2017 (1) TMI 1568 - AT - Income Tax


Issues:
1. Allowance of appeal by the CIT(A) without appreciating the facts of the case.
2. Deletion of additions made under Long Term Capital Gain.
3. Interpretation of the decision of Hon'ble Punjab & Haryana High Court in a similar case.

Issue 1:
The appeal by revenue was directed against the order of the CIT(A) for assessment year 2007-08. The main contention was that the CIT(A) erred in allowing the appeal of the assessee without fully appreciating the facts of the case. The Assessing Officer had made additions under Long Term Capital Gain, and the CIT(A) had deleted these additions. The revenue argued that the CIT(A) did not properly consider the case.

Issue 2:
The case involved a housing society that entered into a joint development agreement with two companies. The Assessing Officer calculated the capital gain based on the consideration receivable in cash and in kind. The assessee had disclosed a lower capital gain in the return of income. The CIT(A) deleted the addition of capital gain based on a similar judgment by the Hon'ble Punjab & Haryana High Court in another case.

Issue 3:
The assessee cited a judgment by the Hon'ble Punjab & Haryana High Court in a case similar to the present one. The CIT(A) relied on this judgment to delete the addition of capital gain. The revenue contended that a departmental appeal was pending before the Hon'ble Supreme Court against the judgment of the Hon'ble Punjab & Haryana High Court. However, the ITAT Chandigarh found that the issue was already decided in favor of the assessee by the Hon'ble Punjab & Haryana High Court, and the pendency of the departmental appeal was not sufficient grounds to rule otherwise. Therefore, the departmental appeal was dismissed.

In conclusion, the ITAT Chandigarh dismissed the departmental appeal, upholding the decision of the CIT(A) to delete the additions made under Long Term Capital Gain. The judgment of the Hon'ble Punjab & Haryana High Court in a similar case was a crucial factor in this decision, and the pendency of a departmental appeal before the Supreme Court did not alter the outcome.

 

 

 

 

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