Tajinder Kaur vs Income Tax Officer, Ward 68(5)

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 04.11.2025, for Assessment Year 2018-19.

Shri Vatsal Sharma, appearing on behalf of the assessee, submits that the assessee/appellant is a housewife having no independent source of income. During Financial Year 2016-17, husband of the assessee, who was the sole owner of Delhi Development Authority (DDA) Plot No. 304, Pocket No. C-4, Sector 34, Rohini, Delhi, had sold the said property for Rs.8,00,000/-. The entire sale consideration was received by the husband of the assessee in his bank account. The assessee was neither a joint owner of the said property nor any part of the sale consideration was received by the assessee in her bank account. The assessment proceedings u/s 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) were initiated against the assessee without any basis. The ld. Counsel for the assessee, to support his submissions, referred to the allotment letter dated 28.11.2014 issued by DDA in the name of Shri Manohar Singh, husband of the assessee (at pages 38 to 40 of the paper book). The ld. Counsel submits that relevant documents were placed before the AO, including the sale deed executed by Shri Manohar Singh and the original allotment letter in his name. Still, the AO made addition of Rs.11,25,000/-as Short-Term Capital Gain (STCG) in the hands of the assessee i.e. to the extent of 50% share in immovable property. The ld. Counsel further pointed that the entire amount of Rs.22,50,000/- has also been added in hands of Shri Manohar Singh by the AO in assessment proceedings for A.Y. 2017-18. The ld. Counsel further contended that, in any case, the addition cannot be made in A.Y. 2018-19 as the property was sold during the period relevant to A.Y. 2017-18.

Per contra, Shri Manoj Kumar representing the department strongly placed reliance on the impugned order and prayed for dismissing appeal of the assessee.

Both sides heard, orders of the authorities below examined. The solitary issue in the present appeal is the addition of Rs.11,25,000/- made in the hands of the assessee on account of STCG not disclosed by the assessee. A perusal of registered agreement to sell dated 06.02.2017 (on the basis of which addition is made) available at page 67 to 74 of paper book shows that it has been jointly executed by Shri Manohar Singh and the assessee. Since, the agreement was executed in FY 2016-17 and entire agreed consideration was received during FY 2016-17, no addition in respect of any capital gain arising on transfer of immovable property could have been made in AY 2018-19 for the property sold in FY 2016-17.

The present assessment proceedings against the assessee are unsustainable for the reason that the immovable property was sold during F.Y. 2016-17 and the alleged STCG is taxed in hands of the assessee in AY 2018-19. Thus, for the aforesaid reason, the addition of Rs.11,25,000/- is unsustainable and is directed to be deleted.

In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose.