Shri Bhaskar Gopichand Gupta Vs. ACIT-9(2)(1)

Parties Involved

Facts Summary

The assessee, Shri Bhaskar Gopichand Gupta, filed his return of income for the assessment year 2011-12, declaring a total income of Rs. 4,84,65,310/-. He claimed deductions under sections 80C and 80D and also claimed a deduction under section 54EC amounting to Rs. 50 lakhs. The Assessing Officer (AO) selected the return for scrutiny and issued notices under sections 143(2) and 142(1). The AO noted that the assessee had surrendered tenancy rights in a flat for Rs. 7,12,79,000/- and claimed brokerage paid of Rs. 8,21,000/-. The AO rejected the assessee's claim of long-term capital gain of Rs. 3,77,12,333/- and treated the receipt as income from undisclosed sources. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who allowed the appeal. The revenue appealed to the Tribunal.…

Legal Issues

• 1. Whether the receipt of Rs. 7,21,00,000/- is taxable as capital gains or income from undisclosed sources.
• 2. Whether the transaction of acquisition and sale of tenancy rights is a sham transaction.
• 3. Whether the deduction under section 54EC is allowable.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

• Jagannath Sambhaji Satav vs. Income Tax Officer

  Pune bench

• ITO, Ward 6(3), Pune Vs. Kalawati Vijaykumar Agarwal

  Pune bench

• KrunalbhaiKanubhai Patel vs. Income Tax Officer

  Ahmedabad bench

• Murtuza Kothari vs. ITO, Ward-19(2)(2)

  Mumbai benchAY 2015-16Partly Allowed

• Hariprasad Vedasubramanian vs Income Tax Officer

• Mamta Gourav Jain vs Income Tax Officer

  Mumbai "D" Bench benchAY 2020-21Allowed