Taxation in the wrong Assessment Year: ITAT deleted addition
Let us have a Short Overview of the case which is regarding the taxation was there in the wrong Assessment Year: ITAT deleted addition:
Facts:
Assessee entered into an agreement to sale of property in FY 1998-99 and thereafter in FY 2012-13 registry of the property was done with the registrar. Case of assessee was reopened u/s 148 for AY 2013-14 proposed to make additions of long term capital gain for sale of property.
Submissions:
Capital gain for sale of property arises in FY 1998-99 and not in FY 2012-13. All the rights, risk, rewards, keys and possession of the said property was transferred in FY 1998-99. Registering the sale deed in FY 2012-13 was a mere formality. Affidavits of the buyer and seller in this respect was also submitted.
Held by CIT(A):
I am of the considered view that the capital gain on the sale of property does not arise in the FY 2012-13 as the actual transfer of property took place in the FY 1998-99. Thus, the addition of long term capital gain is not sustainable and is directed to be deleted.
The appeal on this ground is thus treated as allowed.
The copy of the order is as under:
