Detailed Analysis of ITA No. 1009/DEL/2022: Mrs. Madhu Bhaduri vs. ACIT

Detailed Analysis of ITA No. 1009/DEL/2022: Mrs. Madhu Bhaduri vs. ACIT

The Income Tax Appellate Tribunal’s decision on ITA No. 1009/DEL/2022 marks a significant discussion on the assessment of long-term capital gains, cost of improvement claims, and the admissibility of expenditures without receipts in inherited property cases. This article delves into the intricate details of the tribunal’s judgment, shed light on the intense arguments put forth by both parties, and elucidates the rationale behind the partly allowed verdict.

Case Background

The appellant, Mrs. Madhu Bhaduri, contested the assessment order for the financial year 2016-17 issued by the National Faceless Appeal Centre (NFAC)/CIT (Appeals). The crux of the appeal lied in the rejection of the indexed cost of improvement claimed by Mrs. Bhaduri on the inherited property, which led to an increase in capital gains taxation.

Key Issues and Grounds of Appeal

Amongst various issues raised, the core argument revolved around the inability to provide documented evidence for the cost of improvements purportedly made on the inherited land over the years. The appellant contended that such improvements were not only substantial but also crucial for maintaining the land’s integrity and, hence, should be considered for tax assessment purposes.

Submissions and Hearing

During the proceedings, the appellant’s representatives, Shri Tarun Kandhari and Ms. Renu Suri, highlighted the practical challenges in maintainin…[The article continues detailing the arguments presented by both the appellant and respondent, the tribunal’s observations, and its final decision, along with legal precedents and the implications of the case for future reference.]

Detailed Analysis of ITA No. 1009/DEL/2022: Mrs. Madhu Bhaduri vs. ACIT