This case involves an appeal by Kawal Singh, legal heir of Late Shree Chand, against the final tribunal order dated September 27, 2021. The appeal contests the decision made by the Income Tax Officer (ITO) Ward-4(2), Gurgaon regarding the assessment year 2012-13.
The appellant contested the reopening of the assessment by the Assessing Officer (AO) under section 147 of the Income Tax Act, which was affirmed by the CIT(A). The key dispute revolves around the assessment of a substantial amount as long-term capital gain from the sale of land, which the appellant claims as agricultural and therefore not a capital asset.
The appeal challenges several decisions:
The legal representatives of Kawal Singh argued that the conditions for reopening the assessment under sections 147 to 151 were not met. They also contested the classification of the land as non-agricultural and argued against the calculation of the capital gains. Additionally, they appealed for the exemption under section 54B, which was denied based on the AO’s assessment.
The tribunal, considering the circumstances and the delay caused by the COVID-19 pandemic, decided to condone the delay of 437 days in filing the appeal. However, the appeal was dismissed with the option for the appellant to reapply under the ‘Vivad se Vishwas Scheme’. If the application under the scheme is rejected, the appellant has the liberty to revive the appeal.
This case highlights the complexities involved in the assessment of capital gains and the legal challenges in reopening assessments. It underscores the need for clear documentation and adherence to legal principles in tax matters.
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