TaxTMI 
TaxTMI 
2026 (4) TMI 1313
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....ssment order on the ground that though the case was selected for limited scrutiny, however, the Assessing Officer ('AO') has expanded its scope without following the instructions/guidelines issued by Central Board of Direct Taxes (CBDT). 3. Briefly the facts are, the assessee is a resident individual. For the assessment year under dispute, the assessee filed its return of income on 28.09.2019, declaring income of Rs. 19,08,090/-. Assessee's case was selected for limited scrutiny under the e-assessment Scheme, 2019 to verify the following: "Investment in Immovable Property". 4. In course of assessment proceeding, the AO noticing that in the year under consideration, assessee had made investments in immovable property, decided to ver....
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....ital Gain' and assessable in Assessment Year (AY) 2020-21. The Assessing Officer, however, did not agree with the submissions of the assessee and proceeded to compute 'Short Term Capital Gain' ('STCG') at Rs. 1,10,32,000/- after allowing deduction on cost of acquisition and stamp duty paid by the assessee while acquiring the tenancy rights. Though, the assessee contested the addition made, by filing an appeal before learned First Appellate Authority, however, he was unsuccessful. 5. Before us, learned counsel appearing for the assessee submitted that the case was selected for limited scrutiny to verify the investment made in immovable property. Whereas, the AO has added a new source of income of 'STCG'. Thus, he submitted, the AO has tra....
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....verify investment in immovable property, it encompasses all issues relating to such investment including the issue of income under the head capital gain. Therefore, in our view, assessee's contention that the AO has travelled beyond the scope of limited scrutiny is unacceptable. Accordingly, we dismiss the ground. 8. In Ground Nos. 2 and 3, the assessee has contested the addition of Rs. 1,10,32,000/- as STCG. As discussed earlier, on 31.12.2015, the assessee acquired tenancy rights of an immovable property being a flat from M/s. Nayvad Trading Pvt. Ltd. for a consideration of Rs. 30,00,000/-. The assessee further incurred expenditure of Rs. 8,78,000/- towards registration charges. Subsequently, the landlord entered into an agreement with....
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....handing over possession of THE Tenanted PREMISES to THE DEVELOPERS for demolition and redevelopment thereof, or otherwise. Such tenancy rights shall stand automatically surrendered/cease to exist only upon and at the time of THE DEVELOPERS handing over and putting the TENANT/OCCUPANTS in quiet vacant and peaceful possession of THE Permanent alternate accommodation together with the amenities listed in Annexure 'B' after obtaining part/full occupation certificate in respect of the said permanent alternate accommodation with proper municipal water connection and separate electric connection and completion of the RCC structure with all slabs and external walls in respect of the entire building." * Clause 5 of the agreement pro....