High Court of Meghalaya · Judgments and reasoned final orders
Smt. Sutapa Chakravarty v. The Chief Commissioner of Income Tax, Shillong & Ors.
WP(C) No. 66 of 2025 ·
Closure of Capital Gains Deposit Scheme (CGDS) account for AY 2018-19 where sale of immovable property resulted in capital loss and only Rs. 1,09,29,600 was partially released: petitioner permitted to file revised return for AY 2018-19 (physically if necessary) before ITO Ward 52(1), Kolkata, who must then pass final orders closing the CGDS account expeditiously.
1. FACTS OF THE CASE
In her third round of writ litigation (following WP(C) No. 213 of 2024 decided on 06.09.2024), the 67-year-old petitioner challenged an order dated 22.11.2024 that approved only a partial release of Rs. 1,09,29,600 from her Capital Gains Deposit Scheme (CGDS) account without releasing the balance. The petitioner had mistakenly deposited the sale proceeds of an immovable property into the CGDS account on a tax consultant's advice even though the transaction resulted in a capital loss for AY 2018-19, and the Department insisted on a revised return for AY 2018-19 pursuant to a section 148 notice.
2. DISCUSSION BY THE COURT
Recording the concession of respondents' counsel that the Department would examine and process full closure of the CGDS account upon the petitioner filing a revised income-tax return for AY 2018-19 incorporating the property sale and capital loss, the Division Bench directed that the petitioner be permitted to file her revised return for AY 2018-19 before Respondent No. 3 (ITO Ward 52(1), Kolkata), physically if necessary, and that final orders for closure of the CGDS account be passed most expeditiously given that the matter had been pending since 2019.
3. JUDICIAL DECISION
Disposed of WP(C) No. 66 of 2025 directing physical/online acceptance of the petitioner's AY 2018-19 revised return and expeditious final closure of her CGDS account.
4. OUTCOME
Assessee - Petitioner permitted to file revised return for AY 2018-19 (including physically if required) before Respondent No. 3, who is directed to pass final orders for full closure of the CGDS account expeditiously.
5. AKHB REVIEW POINT
AKHB analysis: when sale proceeds are erroneously deposited in a Capital Gains Account Scheme (CGDS) account despite a capital loss, full release under Form G/H often requires reconciling the underlying assessment year's return; if the portal is closed, seek permission to file a physical return before the jurisdictional AO.
Source and verification
5-page official High Court of Meghalaya judgment PDF (20250805_MLHC010002172025.pdf).
Original PDF: 5 pages · SHA-256: c719f47a56da27b59f8f265f4c572678a7306445ed20cd089f5ec8c085ea4262
Supplied source-reviewed note retained; original bytes and identity validation checked in this release. Substantive re-review is not claimed for this record.
Applies the Capital Gains Accounts Scheme, 1988 and section 148 of the Income-tax Act, 1961 for AY 2018-19. Income-tax Act, 2025 equivalence is not verified.
Full primary judgment PDF read page-by-page and verified against the AKHB Google Drive repository. Comprehensive subsequent judicial treatment has not been independently verified.
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