Calculation of capital gain as per sec. 45 of the Income Tax Act, 1961


Quick Summary
This judgement concerns the calculation of capital gains tax under Section 45 of the Income Tax Act, 1961. The assessee declared income including long-term capital gains from a development agreement for open land. The Revenue's appeal against the CIT(A)'s order was dismissed, upholding the assessee's position on the capital gain calculation.

Court :
ITAT Hyderabad

Brief :
This appeal of Revenue is directed against the order of the CIT(A)-3, Hyderabad dated 04.09.2019 pertaining to A.Y. 2016-17.

Citation :
ITA No. 1779/Hyd./2019

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD ‘A’ BENCH : Hyderabad
(Through Video Conference)
Before Smt. P. MADHAVI DEVI, Judicial Member
and
Shri L.P. SAHU, Accountant Member
ITA No. 1779/Hyd./2019
Assessment Year: 2016-17

ITO, Ward - 4

Warangal

vs

Smt. Gyana Kumari Rojanala

Warangal

[PAN: AMHPR2269M]

For Revenue: Dr. R. Deepak, D.R.
For Assessee: Shri A.V. Raghuram, AR.
Date of Hearing : 02/08/2021
Date of Pronouncement : 30/08/2021

O R D E R

This appeal of Revenue is directed against the order of the CIT(A)-3, Hyderabad dated 04.09.2019 pertaining to A.Y. 2016-17.

2. Facts of the case in brief are that the assessee filed return of income on 06th Feb, 2017 declaring total income of Rs.1,57,900/- and income from long term capital gain at Rs. 1,40,454/-. On perusal of the documents, it has been observed that the assessee has entered into agreement-cum- general power of attorney with M/s Prakruthi Infrastructure and Developers vide registered document no. 6174 of 2013 executed on 6.11.2013 for development of open land admeasuring 7254 sq.yards situated in survey.

3."It is clear from the judicial pronouncements above referred to that the authorities and the tribunals functioning within the jurisdiction of the court in respect of whom this court has the power of superintendence under article 227 are bound to follow the decisions of this court. on an appeal, the operation of the judgment is suspended: It is not permissible for the authorities and the Tribunals to ignore the decisions of this court or to refuse to follow the decisions of this court on the pretext that an appeal is filed in the Supreme Court which is pending or that steps are being taken to file an appeal. If any authority or the tribunal refuses to follow any decision of this court on the above grounds, it would be clearly guilty of committing contempt of this court and is liable to be proceeded against.

4. In the result, Revenue’s appeal is dismissed.
Order pronounced on 30/08/2021.

Please find attached the enclosed file for the full judgement

FAQ :

The judgement primarily deals with the calculation of capital gains tax as per Section 45 of the Income Tax Act, 1961, specifically in relation to a development agreement for land.

The assessee filed a return declaring a total income of Rs. 1,57,900/-, which included income from long-term capital gain amounting to Rs. 1,40,454/-.

The assessee entered into an agreement-cum-general power of attorney with M/s Prakruthi Infrastructure and Developers for the development of open land.

The Revenue's appeal against the order of the CIT(A)-3, Hyderabad was dismissed by the Income Tax Appellate Tribunal.

 
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