2019 (5) TMI 1703 - AT - Income Tax

Tribunal allows appeal against short term capital gains addition for reexamination by Assessing Officer

Shri Kishore Kumar Versus DCIT Circle – 7 (1), Bangalore.

The tribunal allowed the appeal filed by the assessee against the order of CIT (A) for the assessment year 2006-07 regarding the addition of Rs. 751,226 ... Short term capital gains - claim of expenditure incurred in leveling of the plot or otherwise relevant for the purpose of computation of short term capital gain - HELD THAT:- Revenue could not point out any difference in facts in the present year as compared to A. Ys. 2007-08, 2008-09 & 2010-11 [2018 (3) TMI 1823 - ITAT BANGALORE] or which the tribunal order is made available by the learned AR of the assessee. Hence, we find no reason to take a contrary view in the present year. Hence, on the same line, in the present year also, we set aside the order of CIT (A) and restore the matter back to the AO for fresh decision with the same directions as were given by the tribunal in the case of the present assessee in its order for A. Ys. 2007-08, 2008-09 & 2010-11 and in the case of the co owner. We find that the direction was this that the AO should reexamine the claim of expenditure incurred in leveling of the plot or otherwise relevant for the purpose of computation of short term capital gain. In the present year also, we give the same directions to the AO. Issues:- Appeal against order of CIT (A) for A. Y. 2006 - 07- Addition of Rs. 751,226 as short term capital gainsAnalysis:The appeal was filed by the assessee against the order of CIT (A) for the assessment year 2006-07. The main grievance raised in the appeal was regarding the addition of Rs. 751,226 as short term capital gains. During the hearing, the assessee's representative referred to a tribunal order in the assessee's own case for other assessment years where a similar issue had been dealt with. The tribunal had directed the Assessing Officer (AO) to reexamine the claim of expenditure relevant for the computation of short term capital gain. The tribunal decided to set aside the order of CIT (A) and remand the matter back to the AO for fresh decision with the same directions as given in the previous tribunal orders. The AO was instructed to provide reasonable opportunities for the assessee to be heard before passing the necessary order.The tribunal noted that there were no significant differences in facts between the present year and the previous assessment years, where similar issues had been addressed. Therefore, the tribunal decided to follow the same approach as in the previous orders and set aside the CIT (A)'s order. The tribunal directed the AO to reexamine the expenditure claimed by the assessee for the computation of short term capital gain, following the directions given in the previous tribunal orders and providing the assessee with a fair opportunity to present their case.Ultimately, the tribunal allowed the appeal filed by the assessee for statistical purposes. The decision was pronounced in the open court on the specified date.