Appeals Allowed: Transfer Deemed Incomplete, No LTCG. Reassessment Challenge Dismissed. Civil Suits Determine Tax Liability.

The Tribunal allowed the appeals, ruling that the transfer was incomplete based on pending civil suits, resulting in no Long Term Capital Gains (LTCG). The Tribunal dismissed the challenge to the validity of reassessment proceedings due to lack of prior objections and additional grounds submission. The outcome of civil suits would dictate tax liability on capital gains. The judgment was delivered on 27th April 2018.

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Issues:
Appeal against delay in filing, condonation of delay, validity of reassessment proceedings, LTCG computation, reopening of assessment.

Delay in Filing and Condonation:
Both assessee's filed appeals against CIT (A) orders with a delay of 194 and 202 days respectively. They cited various reasons including lack of awareness, personal losses, and legal disputes for the delay. The Tribunal, after considering the reasons, condoned the delay in filing the appeals by both assessee's.

LTCG Computation and Reopening of Assessment:
The case involved joint owners selling property below market value, leading to Long Term Capital Gains (LTCG) computation. The AO reopened the case under section 147 due to non-submission of returns. The assessee's claimed no transfer occurred as the sale deed was for legal disputes settlement and property was not actually transferred. The Tribunal found the transfer incomplete as per declarations and pending civil suits, thus no LTCG arose.

Validity of Reassessment Proceedings:
The assessee challenged the validity of reassessment proceedings under section 148, arguing lack of nexus with income escapement. They also raised concerns about the satisfaction requirement under section 149(1)(b) and cited legal precedents. However, the Tribunal noted that objections were not raised earlier, and additional grounds were not submitted, leading to rejection of the argument against reopening of assessment.

Conclusion:
The Tribunal allowed the appeals, emphasizing that the transfer was not complete based on declarations and pending civil suits. The outcome of civil suits would determine tax liability on capital gains. The Tribunal also dismissed the argument against reassessment proceedings due to lack of prior objections and additional grounds submission. The judgment was pronounced on 27th April 2018.

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