Appeal dismissed: Tribunal upholds deletion of short term capital gain addition

The Tribunal dismissed Revenue's appeal for A.Y. 2009-10, upholding the decision to delete the addition of short term capital gain in the assessee's hands.

---

---

Issues Involved:
Challenge to deletion of short term capital gain arising from the sale of jointly held residential flat.

Analysis:
The case involved an appeal by Revenue against the order of CIT(A)-2, Mumbai for A.Y. 2009-10. The assessee, a medical professional, declared income of Rs. 55,230 for the year. The Assessing Officer (AO) observed a sale of property not reflected in the return and brought 50% of the short term capital gains (STCG) on the sale into the assessee's income. The CIT(A) directed the AO to delete the addition of Rs. 45,38,254 made in the assessee's hands. Revenue challenged this decision, arguing that the entire capital gains on the property sale were not taxed as the husband set it off against short term capital loss (STCL) from share sales. The assessee contended that the property was purchased using the husband's funds, reflected in his Balance Sheet, and the STCG was disclosed in his return. The Tribunal noted that the husband was the source of funds for the property purchase, as confirmed by the AO in a previous assessment. The Tribunal upheld the CIT(A)'s decision, ruling that the STCG should be assessed in the husband's hands, not the assessee's, and dismissed Revenue's appeal.

In conclusion, the Tribunal dismissed Revenue's appeal for A.Y. 2009-10, upholding the decision to delete the addition of STCG in the assessee's hands.

---