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of <h1>Appellate Tribunal reduces LTCG addition and unexplained bank deposit under IT Act for assessment year 2009-2010.</h1> <h3>ITO-Ward-1 (1), Raipur (CG) Versus Surendra Singh Gurudutta And Vice-Versa</h3> ITO-Ward-1 (1), Raipur (CG) Versus Surendra Singh Gurudutta And Vice-Versa - TMI Issues:1. Long Term Capital Gain (LTCG) addition2. Adoption of property value as on 01.04.19813. Unexplained deposit in bank under section 69 of the IT Act, 1961Long Term Capital Gain (LTCG) Addition:The appeal filed by the Revenue challenged the order of the CIT(A) regarding the addition of LTCG from Rs. 65,73,500 to Rs. 43,67,720 for the assessment year 2009-2010. The AO treated the entire amount of Rs. 65,73,500 as long term capital gains since the assessee failed to provide explanations. However, the CIT(A) reduced the amount after considering the inheritance of the property by the appellant and the valuation report of a Chartered Valuer. The CIT(A) allowed a deduction of Rs. 22,05,780 based on the property's value as on 01.04.1981, resulting in the revised LTCG of Rs. 43,67,720. The DR argued against the additional evidence filed by the assessee, citing a violation of Rule 46A of I.T. Rules, 1962. The AR contended that the evidence was submitted on demand by the CIT(A), falling outside the purview of Rule 46A.Adoption of Property Value as on 01.04.1981:The dispute revolved around the adoption of the property value as on 01.04.1981. The AO added the entire sum of Rs. 65,73,500 as income due to an ex-parte order. The CIT(A) considered the property's purchase before 1981 and allowed the deduction of fair market value as on 01/04/1981, based on the Chartered Valuer's report. The AO did not challenge this valuation in the Remand Report, leading to the deduction of Rs. 22,05,780 under section 48 of the Act. Consequently, the LTCG on the property sale was recalculated to Rs. 43,67,720, providing relief to the assessee.Unexplained Deposit in Bank under Section 69 of the IT Act, 1961:Regarding the unexplained deposit in the bank, the AO added Rs. 47,77,500 as undisclosed income under section 69 of the Act due to the lack of explanations from the assessee. On appeal, the CIT(A) restricted the disallowance to Rs. 24,00,000 after considering the peak cash deposit and the appellant's age and income history. The CIT(A) estimated the peak cash deficit and allowed a relief of Rs. 3,77,500, reducing the addition to Rs. 24,00,000. The DR supported the AO's order but failed to identify any specific errors in the CIT(A)'s decision, leading to the dismissal of the Revenue's appeal.In conclusion, the Appellate Tribunal upheld the CIT(A)'s decision to reduce the LTCG addition and the unexplained deposit in the bank, dismissing the appeals filed by both the Revenue and the cross objection by the assessee. The judgments were pronounced on January 17, 2018, at Raipur.
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