2024 (6) TMI 875 - AT - Income Tax

Assessment of long term capital gain on the sale of an immovable property - determination of the share of the assessee in the sale consideration - cost of acquisition - HELD THAT - We find although the CIT(A) / NFAC accepted that the share of the assessee is 1/3rd, however, he upheld the action of the Assessing Officer in treating the share of the assessee at Rs. 65,00,000/-. Payment made to consenting party as expenses on transfer - Further, he did not allow the amount of Rs. 20,00,000/- paid to one Mr. Ankush Rambhau Chandere who is the consenting party as deduction. Since the order of the CIT(A) / NFAC is erroneous to the extent that he has considered the share of the assessee at 50% as against 1/3rd and since the assessee has filed certain additional evidences in support of his claim of deduction of the amount paid to the consenting party, therefore, after admitting the additional evidence, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to adjudicate the issue afresh as per fact and law after affording due opportunity of being heard to the assessee. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. Penalty levied u/s 271(1)(c) - As we find that the quantum appeal filed by the assessee has been restored to the file of Assessing Officer for fresh adjudication. We, therefore, deem it proper to restore the issue of penalty also to the file of the AO for adjudication afresh - Ground allowed for statistical purposes.

Summary

Issues involved:
The judgment involves issues related to the assessment of long term capital gain on the sale of an immovable property, determination of the share of the assessee in the sale consideration, allowance of cost of acquisition, and deduction of expenses paid to a consenting party. Additionally, it addresses the confirmation of penalty under section 271(1)(c) of the Income Tax Act, 1961.

ITA No.160/PUN/2024:
The case pertains to the assessment of an individual who did not file his income tax return after selling an immovable property. The Assessing Officer reopened the case under section 147 of the Act, determining the share of the assessee at Rs. 65,00,000 for tax purposes. The CIT(A) upheld this decision but directed verification of cost of acquisition and disallowed expenses paid to a consenting party. The Tribunal found errors in the allocation of the share and the deduction of expenses, directing the Assessing Officer to reconsider the matter based on additional evidence provided by the assessee.

The grounds raised by the assessee in the appeal include challenging the allocation of the share of the sale consideration, the computation of cost of acquisition, and the disallowance of expenses paid to the consenting party. The Tribunal noted discrepancies in the determination of the share of the assessee and the treatment of expenses, leading to the decision to remand the matter to the Assessing Officer for a fresh assessment based on the additional evidence presented.

ITA No.159/PUN/2024:
This appeal concerns the confirmation of a penalty under section 271(1)(c) of the Act. Given that the quantum appeal was remanded to the Assessing Officer for fresh adjudication, the Tribunal decided to also send the penalty issue back for reconsideration. Consequently, the penalty matter was directed to be adjudicated afresh by the Assessing Officer, providing the assessee with an opportunity to present their case.

In conclusion, both appeals filed by the assessee were allowed for statistical purposes, with the matters being remanded to the Assessing Officer for fresh assessments in light of the errors identified in the original decisions.