ITAT adjudicated a dispute concerning capital gains taxation...

ITAT adjudicated a dispute concerning capital gains taxation involving a parent company's land sale to its 100% Indian subsidiary. The Tribunal rejected the AO's objection regarding new claims, relying on SC precedents in NTPC and Goetze (India) Ltd. cases. The Tribunal accepted the assessee's cross objection, holding that the capital gains from land transfer were not taxable under section 47(iv) of the Income Tax Act. The Tribunal directed the AO to exclude the capital gains from taxable income, recompute total income, and refund taxes paid. Regarding interest, the Tribunal denied section 244A interest to the assessee due to delays attributable to the assessee's initial incorrect tax declaration, with a caveat that interest would be payable if the AO delays appeal effect beyond prescribed timelines.

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