Success Story: Proposed Capital Gains Addition of ₹3.65 Crore Successfully Deleted During Assessment Proceedings
Significant Relief Secured by Adv. Sachin P. Kumar and Team Before the Assessing Officer
At Sachin P. Kumar & Associates, we believe that timely intervention and well-prepared representation can make a substantial difference even at the assessment stage itself. One such notable success was achieved in a capital gains matter where a proposed addition exceeding ₹3.65 crore was successfully contested before the Assessing Officer.
The Matter
During the assessment proceedings for Assessment Year 2025-26, the Income Tax Department proposed an addition of ₹3,65,45,467/- in relation to the sale of immovable property and the computation of long-term capital gains.
The proposed addition carried significant tax implications and had the potential to create a substantial financial burden on the assessee.
Our Strategy
Under the leadership of Adv. Sachin P. Kumar, the firm’s team undertook a detailed review of all relevant documents, property records, sale transactions, valuation reports, and supporting evidence.
The defence involved:
- Thorough factual analysis of the transaction.
- Preparation of detailed replies to notices issued during assessment proceedings.
- Submission of comprehensive documentary evidence supporting the assessee’s claim.
- Effective representation before the Assessing Officer through virtual hearings and video conferencing.
- Legal submissions addressing the applicability of capital gains provisions and factual discrepancies in the proposed addition.
The Outcome
As a result of the detailed submissions and effective advocacy, the Assessing Officer accepted the major contentions raised on behalf of the assessee.
The final assessment order resulted in:
- Deletion of the proposed addition of ₹3,65,45,467/-.
- Substantial tax relief to the assessee.
- Resolution of the principal dispute at the assessment stage itself.
Only a minor addition of ₹28,26,987/- was sustained in the assessment order.
Further Action
An appeal against the remaining addition of ₹28,26,987/- has already been filed before the Commissioner of Income Tax (Appeals) [CIT(A)]. Based on the available documentary evidence and legal merits of the case, the assessee remains confident of obtaining further relief in the appellate proceedings.
A Testament to Effective Representation
This matter demonstrates how proper documentation, timely responses, strategic planning, and strong representation before tax authorities can prevent unjustified additions and protect taxpayers from significant financial exposure.
The successful outcome reflects the dedication and expertise of Adv. Sachin P. Kumar and his team in handling complex income tax assessments and capital gains disputes.
Our Commitment
At Sachin P. Kumar & Associates, we continue to assist clients in assessment proceedings, scrutiny cases, capital gains disputes, reassessment matters, appeals, and tax litigation before various authorities across India.
Disclaimer
This success story is shared for informational purposes only. Every matter depends upon its unique facts, evidence, and applicable legal provisions. Past results do not guarantee similar outcomes in future cases.