Sukla Banerjee vs NFC/ITO Ward-22(2), Kolkata

Parties Involved

Facts Summary

The assessee, Sukla Banerjee, filed a return of income for the assessment year 2022-2023 declaring a total income of Rs. 30,80,970/-. The case was selected for complete scrutiny by the CASS due to the substantial amount reported under the head 'Improvement Cost' under Schedule CG of ITR. The assessee sold an inherited immovable property for Rs. 4,50,00,000/- on 09.03.2022 and had shown the cost of acquisition as Rs. 1,39,70,697/-. The AO referred the matter to the District Valuation Officer (DVO) under section 142A of the IT Act, who determined the cost of acquisition as Rs. 20,86,000/-. Consequently, the AO determined Long Term Capital Gains (LTCG) at Rs. 3,83,87,780/- against the LTCG declared by the assessee of Rs. 7,12,887/-, resulting in an addition of Rs. 3,76,74,893/- as under-reported income.…

Legal Issues

• 1. Whether the statutory notice issued for scrutiny and the order passed by the AO is without jurisdiction.
• 2. Whether the assessment order is barred by limitation.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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