Capital Gains Appeal Allowed in ITA 1755/DEL/2022

In the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘A’, a significant verdict was rendered in the case marked as ITA No. 1755/DEL/2022 for the assessment year 2007-08, where the appellant, Shri Bhuwaneshwar Prasad Singh, challenged the order of the National Faceless Appeal Centre (NFAC), Delhi issued on the 16th of June, 2022. In a detailed judgment pronounced by the esteemed members, Shri N.K. Billaiya, Accountant Member, and Shri Challa Nagendra Prasad, Judicial Member, on 24th May 2023, the appeal was allowed in favor of the appellant. This judgment has set a precedent for how cases involving the claim of long-term capital gains are to be treated by the tax authorities, offering substantial clarification and guidance on related legal and procedural aspects.

The case centered around the appellant’s grievance against the confirmation of an assessment order dated 31st March 2018, framed under section 143(3)/254 of the Income-tax Act, 1961. The heart of the contention was the denial of a claim of long-term capital gain and the confirmation of an addition of Rs. 80,32,765 as undisclosed income by the Assessing Officer. Both parties presented extensive arguments and supporting documents, making it a mater of intricate legal and financial scrutiny.

Capital Gains Appeal Allowed in ITA 1755/DEL/2022