Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (8) TMI 1039 - AT - Income TaxDeduction of cost indexation value of building allowability - CIT(Appeals) directing AO for allowing deduction - Held that:- The rental income from Building was offered for income tax and produced copy of income tax return for assessment year 2004-05 and copy of Residential Electricity bill and Drew our attention to the copy of Income Tax Return of assessment year 2004-05 were the assessee has offered rental income under the house property and disclosed property tax receipts. The ld. Commissioner of Income Tax (Appeals) has elaborately discussed on the existence of Building in his order and having satisfied with Building existence applied PWD rates and calculated index cost of acquisition. We found from the order of assessment and Commissioner of Income Tax (Appeals) that At the request of the buyer/Builder, the property was demolished and sale deed was executed. The ld. Authorised Representative drew our attention to the copies of the Electricity bill of residential to support that the building was in Habitation and rental income was derived. So, considering the apparent facts and material on record and evidence, we found the Commissioner of Income Tax (Appeals) based on examination of the facts of existence of building and Income Tax Returns was of the opinion that the building was in existence and the assessee was offering income from house property in the income tax return. Hence, we are not inclined to interfere with the order of Commissioner of Income Tax (Appeals) and dismiss the Revenue appeal. Determination of sale consideration - Commissioner of Income Tax (Appeals) has adopted the value determined by the DVO - Held that:- We found that the ld. Assessing Officer has adopted the Sub-Registrar value as per provisions of Sec. 50C of the Act.Rs. 1,81,87,296/-. The ld. Commissioner of Income Tax (Appeals) on the basis of the submissions of the assessee referred to the valuation cell and District Valuation Officer has estimated the value of the property of ₹ 1,63,69,000/-. This valuation report was communicated to the assessee and the assessee filed submissions on 04.03.2013 in respect of cost adjustment for the deficiencies attached to the property allowed at 5% and the ld. Commissioner of Income Tax (Appeals) has calculated capital gains which is not disputed, so considering the apparent facts, we confirm the order of Commissioner of Income Tax (Appeals) on this issue. Cost adjustment made by the DVO at 5% and the claim of the assessee being 25% - Held that:- We found that the DVO has calculated the value of property based on the information and details submitted. The contention of the assessee for claim of 25% adopted was argued. The ld. Commissioner of Income Tax (Appeals) could not understand the reasons envisaged by the assessee how such deficiencies attached to the property will adversely affect the value of the property. The ld. Commissioner of Income Tax (Appeals) has rejected the cost adjustment of 25% and we found the ld. Commissioner of Income Tax (Appeals) considered these fact and DVO report and directed the ld. Assessing Officer to adopt value as per DVO for calculation. Therefore, we do not find any infirmity and dismiss the ground in Cross Objection filed by the assessee. Non accepting the plea of the cost of building and estimated cost of allowance at 5% towards cost adjustment by CIT(A) - Held that:- We on perusal of the Commissioner of Income Tax (Appeals) found the probable value of cost of construction of building in financial year 1981-82, 1995-96 and 1996-1997 based on the PWD rates was applicable to the state of Tamil Nadu was calculated at 50% of probable cost of construction adopted for building existing as on 01.04.1981 falling in financial year 1981-1982 as the building being old. We found the reasons recorded by the ld. Commissioner of Income Tax (Appeals) that the assessee could not submit any details of cost of construction incurred for the financial year 1995-96 and 1996-1997 nor assessee was able to file any details of method on methodology in arriving at fair market value of land and building ₹ 14,00,000/-. We are of the opinion that the ld. Commissioner of Income Tax (Appeals) has rightly considered the facts with basic reasons in respect of cost of construction of old building and we dismiss the ground of the assessee. Proceedings of u/s.263 - Held that:- We on perusal of the calculation of Long Term Capital Gains on sale of property at page 9, the ld. Commissioner of Income Tax (Appeals) has made a note in respect of revisionary proceedings and proportionately allowed the claim. Subsequently, the ld. Authorised Representative explained that the order of Sec. 263 on appeal was dismissed and the appeal has been admitted in the High Court and the ld. Assessing Officer has passed the consequential revisionary order on 31.03.2013 giving effect to the direction excluding deduction u/s.54F of the Act and the disputed Revisionary proceedings are pending before High Court. Therefore, we are of the opinion that the ld. Commissioner of Income Tax (Appeals) was correct in his order to make observations and we dismiss the ground of the assessee. Penalty 271(1)(c) - whether the assessee is guilty or submitted inaccurate particulars in the assessment proceedings - Held that:- It was explained that the assessee is the owner of the land and building before 01.04.1981 and subsequently undertook construction works as extension of Building and as per terms of sale with purchaser, the building was demolished and sale deed was executed by the assessee. The fact that the penalty order arised out of the assessment order passed u/s.143(3) r.w.s. 147 of the Act dated 31.12.2009 and the ld. Commissioner of Income Tax (Appeals) in the quantum proceedings having satisfied that there is existence of Building and allowed index cost acquisition as deduction from sale consideration. The proceedings under Sec. 263 of the Act are being contested at higher forums and has not attained finality. The Revenue before us argued on the basis of Revision order passed u/s.263 of the Act which is not appropriate. The facts of the assessment proceedings have been considered by the ld. Commissioner of Income Tax (Appeals) and satisfied with evidence and also there is no concealment or furnishing of inaccurate particulars as the assessee has claimed exemption u/s.54Fof the Act and also disclosed Rental income from the building in earlier assessment years
|