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2013 (8) TMI 322 - ITAT DELHIExemption u/s 54 - Transfer of property - investment of capital gains in the new house property - deduction of expenditure in connection with sale - Held that:- Payments were made by cheques to people and were duly acknowledged through receipts wherein the payees has admitted of having received these payments - as the expenditure necessarily represented cost incurred by the assessee for effecting the sale of property as without settlement of earlier deal, the assessee was not in a position to execute the sale deed. Without terminating the agreement to sell, the assessee could not have sold this property to any other person. Therefore, the assessee has incurred these expenditure to finalize the sale transaction, therefore, expenses incurred by the assessee in connection with the said property for the purpose of final sale is to be treated as expenditure in connection with such transfer - assessee had necessarily complied with the conditions for allowability of claim as assessee had entered into an agreement for purchase of house and had invested more than capital gain in the said house property - possession of property is not necessary within the prescribed time, the only condition is the investment which in the present case the assessee has made - Decided in favour of assessee. Addition u/s 69C - Low withdrawals for household expenses - CIT upheld additions - Held that:- in the immediately preceding year, the assessee along with his family members had made total withdrawals of Rs.3,62,868/- and assessment of the assessee was completed u/s 143(3), copy of which is placed at page 60 and there was no addition made by the Assessing Officer on account of low withdrawals. Though principle of res judicata does not apply to Income tax proceedings and every year is considered a separate year yet on the basis of consistency the facts and circumstances of the present year remains same as Assessing Officer did not point out any specific circumstances by which he assumed that assessee had made low withdrawals as against the assumed expenses of Rs.15 lakhs p.a. However, on the basis of financial position of the assessee, withdrawals made by him do not match with his probable actual expenditure. The addition made by the Assessing Officer by assuming an annual expenditure of Rs.15 lakhs is also on a higher side, therefore additions are reduced - Decided partly in favour of assessee.
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