Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (6) TMI 326 - AT - Income TaxLong term capital gain - dis allowance of cost of acquisition of proportionate land area sold during the year and cost of improvement incurred to the proportionate sale of flats - Held that:- The main issue is, the assessee had built the five flats, two flats were sold during the current AY, two flats were sold in the subsequent AY and retained one flat for self occupation. AO, based on the statement of joint developer, treated the whole building as complete and ready for sale whereas the assessee controverted and submitted that only two flats were completed and sold. The balance flats were not completed, only the super structure of the building was completed with the interior work like flooring of tiles, kitchen and plastering etc. were not completed. AO has relied only on the statement of the joint developer and has not brought anything on record to prove that the building was completed in AY 2007-08 itself. Hence, we have no option but to rely on the submissions of the assessee.- Decided against revenue Determination of sources of funds to the above investment in the building for construction of the flats up to the end of the financial year 31/03/2007 - Held that:- We find that the assessee has made investment in the building to the extent of cost involved. The assessee had sufficient funds to finance the investment in the building. There may be mismatch on the micro level but at the outset, it is established that the assessee had sufficient funds to make the investment. - Decided against revenue
|