IN THE ITAT, BANGALORE BENCH
N.V. VASUDEVAN, V.P.
Ayi Vaman Narasimha Acharya v. Dy. CIT
ITA No. 1527/Bang/2019
10 February, 2021
In favour of assessee.
Assessee by: V. Srinivasan, Advocate
Revenue by: Ganesh R. Ghale, Jr. Standing Counsel
N.V. Vasudevan, V.P.
This is an appeal of the assessee against the Order, dated 24-5-2019 of Commissioner (Appeals)-6, Bengaluru, relating to assessment year 2011-12. At the time of hearing, learned Counsel for the assessee submitted that he does not wish to press for adjudication ground No. 2 raised by the Revenue with regard to the challenge to the validity of initiation of reassessment proceedings under section 148 of the Income Tax Act, 1961 (hereinafter called 'the Act').
2. The only ground that needs to be adjudicated int his appeal is as to whether the Revenue authorities were justified in bringing to tax as capital gain a sum fo Rs. 25,53,315 by invoking the provisions of section 50C of the Act.
3. The assessee is an individual. For assessment year 2011-12, he filed return of income on 16-9-2011 declaring a total income of Rs. 18,83,160. This return was accepted under section 143(1) of the Act. Subsequently, the assessment was reopened under section 148 of the Act by issue of a notice, dated 30-3-2018. The reasons for issue of notice were that the Assessee sold two shops at Cavalry Road, Bangalore (hereinafter referred to as 'the property') under a sale deed, dated 10-8-2009 for a sale consideration of Rs. 32,27;010. The value adopted by the registering authority for the purpose of stamp duty and registration charges i.e., as per guideline valuation was Rs. 57,80,325. The Assessee had not disclosed the capital gain on sale of the property, the assessing officer initiated proceedings for reassessment to assess capital gain that escaped assessment.