Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 313 - AT - Income TaxDeductibility of the amount paid as compensation u/s 48 - capital gain computation - CIT(A) has doubted the genuineness of the agreement and has even hinted at the possibility of the assessee having fabricated the story to suit his ends - Held that:- CIT (A) are not backed by any cogent evidence but are more in the realm of surmises and conjectures. Even the Ld DR, during the course of arguments before us, did not put any sort of argument to remotely doubt the genuineness of the agreement. The Ld. DR could not refute the assertion of the Ld. AR that the payee had duly accounted/disclosed the said amount as income in its hands. However, a perusal of the assessment order shows that this aspect has not been looked into at all by the AO. Thus, the findings by the AO and the Ld. CIT (A) are based on two different footings. It remains undisputed that the assessee was not specifically confronted on this issue and a simple order sheet entry was made before making the disallowance. Therefore, on an overall appreciation of the circumstances he failure of the AO to issue a show-cause notice before making the proposed disallowance, the failure of the Ld. CIT (A) to specifically adjudicate on the issue of admissibility of assessee’s claim u/s 48 of the Act coupled with the AO not examining the sale agreement to test its veracity, we are of the considered opinion that the entire issue needs to be restored to the file of the AO for re-examining the issue in light of the evidences filed by the assessee as well as the settled judicial precedents. Accordingly, we restore the issue of determination of the deductibility as an admissible deduction to the file of the AO to be decided in terms of our observations above after giving a proper opportunity to the assessee. Addition towards the cost of improvement - Held that:- To meet ends to justice, taking into account holistic consideration of all the facts, we are of the opinion that half of the amount claimed may be treated as allowed as the factum of improvement by incurring expenses is not doubted and we accordingly sustain 50% of the same.
|