Assessee gets relief as only differential LTCG amount can be added to avoid double taxation

ITAT Ahmedabad allowed the assessee's appeal partly in a LTCG dispute. The CIT(A) erroneously added Rs. 2,62,383 as LTCG based on tax audit report, while the assessee had already declared Rs. 2,53,211 as LTCG in the return and paid taxes. The tribunal held that only the differential amount of Rs. 9,172 could be added to avoid double taxation, deleting the remaining addition and granting relief to the assessee.

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Issues involved:
1. Addition of capital gain of Rs. 2,62,383/- confirmed by the office of Commissioner of Income-tax, Appeals.
2. Discrepancy between long term capital gain reported in tax audit report and declared in the return of income.
3. Double taxation issue regarding long term capital gain.

Detailed Analysis:
1. The appeal in ITA No. 898/Ahd/2024 for assessment year 2021-22 arose from an appellate order confirming the addition of capital gain of Rs. 2,62,383/-. The assessee contended that the addition was illegal, unlawful, and against justice, leading to the grounds of appeal challenging the decision.

2. The discrepancy arose regarding the long term capital gain amount reported in the tax audit report and the amount declared in the return of income. The ld. Addl/JCIT(A) observed an inconsistency between the figures, leading to the decision to charge the entire amount of Rs. 2,62,383/- to tax. The assessee filed an application for rectification, arguing that Rs. 2,53,211/- had already been offered for taxation as long term capital gain.

3. The issue of double taxation emerged as the ld. Addl/JCIT(A) confirmed the addition of Rs. 2,62,383/- despite the assessee declaring long term capital gain of Rs. 2,53,211/- in the return of income. Both parties agreed that only the differential amount of Rs. 9,172/- should be added to avoid double taxation. The Tribunal sustained the addition of Rs. 9,172/- and granted relief to the assessee by deleting the remaining addition under the head LTCG, as the reported amount was already declared in the return of income.

Overall, the Tribunal partly allowed the appeal, addressing the discrepancies and ensuring that only the differential amount was added to avoid double taxation, thereby providing relief to the assessee.

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