SUKHBIR SINGH BRAR,LUDHIANA V. DY. COMMISSIONER OF INCOME TAX, CIRCLE-1, INTERNATIONAL TAXATION, CHANDIGARH

ITITA 242/CHANDI/2025

AI Insights

The case involves Shri Sukhbir Singh Brar, a non-resident and joint owner of a property in Chandigarh, who appealed against the final assessment order for the Assessment Year 2022-23. The primary contention was the reassessed cost of acquisition of the property, which significantly affected the computed Long-Term Capital Gains (LTCG). The Assessing Officer (AO) had recalculated the cost of acquisition from Rs. 122.97 Lacs to Rs. 13.79 Lacs, leading to a higher LTCG assessment. The Dispute Resolution Panel (DRP) upheld the AO's decision due to insufficient documentary evidence from the assessee regarding the cost of construction. The ITAT, considering the submissions and evidence presented by the assessee's advocate, decided to remand the case back to the DRP for a fresh evaluation of the cost of acquisition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784052 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 13-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Appeal Filed On: 14-02-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL; LD
• Assessee Lawyers: TEJ MOHAN SINGH LD
• Keywords: Set aside; Cost of acquisition; Capital Gains

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.242/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2022-23) Shri Sukhbir Singh Brar C/o Tejmohan Singh (Advocate) # 527, Sector-10D Chandigarh-160011 बनाम/ Vs. DCIT-Circle-1 International Taxation Chandigarh-160017 ˕ायीलेखासं./जीआइआरसं./PAN/GIR No. ADJPB-7099-Q (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Tejmohan Singh (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Smt. Kusum Bansal, (CIT) – Ld. DR (Virtual Mode) सुनवाईकीतारीख/Date of Hearing : 06-10-2025 घोषणाकीतारीख /Date of Pronouncement : 13/10/2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2022-23 arises out of final assessment order dated 16-01-2025 as passed by Ld. AO pursuant to the directions of Ld. DRP-1 dated 17-12-2024 making certain addition in the hands of the assessee on account of capital gains. In the draft assessment order dated 22-03-2024, Ld. AO noted that the assessee was a non-resident during this year. The assessee being 50% Printed from counselvise.com 2 joint owner of a property situated at SCO 194, Sector-7-C, Chandigarh sold the same for Rs.398 Lacs (assessee’s share being Rs.199 Lacs). The assessee claimed cost of acquisition for Rs.122.97 Lacs which was re-computed by Ld. AO at Rs.13.79 Lacs. The Long-Term Capital Gains were computed as Rs.185.20 Lacs against which Long Term Capital Loss of Rs.12.46 Lacs was granted to the assessee. The assessable LTCG was computed as Rs.172.74 Lacs. The Ld. DRP upheld the action of Ld. AO for want of sufficient documentary evidences from the assessee qua cost of construction. Pursuant to the directions of Ld. DRP, LTCG were assessed at Rs.172.74 Lacs in final assessment order dated 16-01-2025 against which the assessee is in further appeal before us. The prime grievance of the assessee is qua cost of acquisition only. 2. The Ld. AR pointed out that the correct indexed cost of acquisition was Rs.122.97 Lacs and the assessee had filed an updated return on 25- 11-2024 vide acknowledgement no.724706320251124 paying due taxes. The computations of Rs.122.97 Lacs has been placed on record. The Ld. AR also stated that a detailed synopsis dated 26-11-2024 was filed before Ld. DRP which remained to be considered by Ld. DRP. 3. Considering the aforesaid submissions of Ld. AR, we set aside the appeal back to the file of Ld. DRP for fresh directions in terms of pleadings made by Ld. AR and computations placed before us qua cost of acquisition. The updated return as filed by the assessee as well as detailed synopsis as filed by Ld. AR would be taken into account. The assessee is directed to plead and prove its case forthwith. Printed from counselvise.com 3 4. The appeal stand allowed for statistical purposes. Order pronounced on13/10/2025 Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 13/10/2025 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "