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2024 (2) TMI 271 - ITAT DELHIReopening of assessment u/s 147 - gain on sale of property - LTCG or STCG - AIR information indicating that the assessee has sold immovable property during the year under consideration - though the property sold was a long term capital asset, however, AO has taxed the profit derived from sale of the property as short term capital gain since, assessee could not produce the purchase deed in course of assessment proceedings - subject addition on account of short term capital gain is only for the reason that the purchase deed was not available before the Departmental Authorities - HELD THAT:- It is the specific case of the assessee that the property was purchased on 30/05/2006 and sold on 16/03/2011, therefore, it is a long term capital asset. It is further case of the assessee that the assessee is one of the co-owners of the said property. If the assessee wants to prove the nature of the asset, whether long term of short term by leading some evidence, in our view, such opportunity should be granted to the assessee. Since, FAA has refused to take cognizance of the evidences furnished by the assessee, in our view, the assessee deserves an opportunity to prove his case through proper evidence not only with regard to nature of asset, whether long term and short term, but also the extent of his ownership over all the asset. Accordingly, we set aside the impugned order of the First Appellate Authority and restore the issue to the file of the AO for fresh adjudication after providing due and reasonable opportunity of being heard to the assessee.
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