Mr. Sharwan Kumar Sethi Vs. The Pr. Commissioner of Income-Tax

Parties Involved

Facts Summary

The assessee, Mr. Sharwan Kumar Sethi, filed a return of income declaring an income of Rs. 1,72,48,137/-. The case was selected for scrutiny under CASS. An order under section 143(3) of the Income Tax Act, 1961 was passed on 18.03.2015 by ACIT, Circle 51(1), New Delhi, assessing the income at Rs. 1,91,61,670/-. The assessee sold a flat in Essencia Residential Plot No. E-2040, Sector-67, Sushant Lok-IV, Gurgaon and treated it as Long Term Capital Gain, adjusted against the Long Term Capital Loss of Rs. 10,80,752/-. The Assessing Officer passed a rectification order under section 154 of the Act on 11.07.2016, adding Rs. 9,48,911/- to the income of the assessee treating it as Short Term Capital Gain.…

Legal Issues

• 1. Whether the Learned Principal Commissioner of Income Tax erred in invoking section 263 of the Income Tax Act, 1961.
• 2. Whether the Learned Principal Commissioner of Income Tax erred in directing the Assessing Officer to initiate penalty proceedings under section 271(1)(c) if the capital gain is treated as a long term capital gain.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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