Anshu Dhawan vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Anshu Dhawan, filed her return of income for the Assessment Year 2022-23 declaring a total income of Rs.37,51,250/-. The case was selected for scrutiny under CASS due to low Long Term Capital Gain (LTCG) and high improvement cost. Notices under section 143(2) and 142(1) of the Income-tax Act, 1961 were issued. During the assessment, the Assessing Officer (AO) observed that the assessee had declared an LTCG loss of Rs.45,80,056/- and claimed a total cost of improvement with indexation at Rs.1,83,73,704/-. The AO noted that the assessee had booked a unit in Palm Terraces Select, Gurgaon, with the developer Emaar MGF Land Limited in 2010 and had transferred the property to Rajat Likhyani and Mrs. Bhawana Likhyani in 2021 for Rs.2,22,00,000/-. The AO concluded that the profit of Rs.45,93,765/- should be treated as income from other sources.…

Legal Issues

• 1. Whether the order passed by the Commissioner of Income Tax (Appeals) is against law and facts.
• 2. Whether the addition of Rs.45,93,765/- as income from other sources is justified.
• 3. Whether the assessment should have been made under scrutiny.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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