Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 1080 - ITAT MUMBAIComputation of long-term capital gain on sale of flat - Whether transfer of the said flat was not complete? - assessee argued that the assessee sold a residential flat during the year under reference and earned profit, however, on account of default by purchases the sale remains incomplete - Held that:- The assessee has not disputed the execution of transfer deed. Even before the High Court while filing a petition or in the Arbitration the assessee not sought relief for rescinding the contract of sale/ transfer deed. The only dispute before the High Court and in Arbitration is related with description of money. Further, no dispute that assessee sold his residential flat during the year under consideration. The High Court with the consent of the Counsel of parties referred the dispute and differences between the parties to Mr. Markand Gandhi Sole Arbitrator. We have further seen the arbitration petition wherein the assessee has claimed interest due to delay in payment of agreed amount and the refund of reimbursement of credit received by purchaser from the Housing Society only, where the flat is situated. All these facts were duly considered by learned Commissioner (Appeals) before passing the impugned order. Hence, we do not find any reason to interfere with the findings of learned Commissioner (Appeals). Disallowance of cost of improvement in respect of flat under reference while determining the long-term gain - Held that:- Considering the remand report of assessing officer and the fact that the flat in question is very old and certainly some renovation must have been taken place in between the year 1985 when the property was acquired and in the year 2007 when the property was sold. Commissioner (Appeals) allowed only ₹ 1.00/- lakh out of the total claim of ₹ 5,76,000/-, on account of improvement. We have seen that the learned Commissioner (Appeals) granted partial relief after considering the facts with regard to cost of improvement and the cost of interiors. The estimation of ld Commissioner (Appeals) is at lower side. Considering the facts that property was acquired in the year 1985 and was transferred in the year 2007, we allowed ₹ 2,50,000/- as cost of improvement and interior. The AO is directed accordingly. Appeal of the assessee is partly allowed.
|