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2019 (10) TMI 342 - AT - Income TaxClaim of deduction u/s 54F - CIT(A) allowed the additional evidences submitted by the assessee - HELD THAT:- AO has specifically mentioned the documents produced by the assessee which includes the statements, affidavits, agreements, bills, vouchers regarding the various works got done in respect of the construction of the house. The AO has not given any adverse comments or even not doubted the correctness of the evidence produced by the assessee. Therefore, when the AO himself was satisfied with the evidence produced by the assessee, then the claim of deduction under section 54F allowed by the CIT (A) based on the additional evidence as well as remand report of the AO cannot be disturbed in the absence of any contrary material brought on record by the department. Accordingly we do not find any error or illegality in the order of the ld. CIT (A) qua the issue of allowing the deduction under section 54F of the IT Act. Deduction u/s 54B - agricultural land purchased by the assessee in the name of his son and daughter-in-law - CIT-A allowed the claim - HELD THAT:- Evidence produced by the assessee being Jamabandi, Girdawari report etc. is only in respect of the land purchased by the assessee and not in respect of the land sold by the assessee. Therefore, the finding of the ld. CIT (A) is based on presumption of wrong facts and rather based on the facts which are contrary to the material on record. Accordingly, we set aside the order of the ld. CIT (A) qua this issue and restore the order of the AO denying the claim of deduction under section 54B Disallowance of cost of development of land - claim allowed by the ld. CIT (A) - HELD THAT:- Facts recorded by the ld. CIT (A) that the payment was made towards construction of the area admeasuring 450 ft. @ ₹ 400/- per ft has been reflected in the evidence produced by the assessee. The AO has not pointed out any defect in the evidence produced by the assessee in support of the claim. Accordingly, in the absence of any contrary fact or material, we do not find any error or illegality in the impugned order of the ld. CIT (A) qua this issue. Disallowance of transfer expenses - claim allowed by the ld. CIT (A) - HELD THAT:- In view of the fact that the assessee produced the evidence in support of the claim and the AO has not made any comment in the remand report about the correctness of the evidence produced by the assessee, then the decision of the ld. CIT (A) based on the evidence cannot be disturbed when the AO himself has not made any comment in the remand report. Reopening of assessment u/s 147/148 - HELD THAT:- The AO has clearly recorded in the reasons that during the enquiry proceedings the assessee has not furnished any documentary evidence in support of the claim. Therefore, the claim of deduction of ₹ 2,41,59179/- was found to be not substantiated by any evidence. This result of enquiry itself constitutes a tangible material to form the belief that the income assessable to tax in the form of excess claim of deduction has escaped assessment. We further note that even during the reassessment proceedings the assessee has not produced any documentary evidence in support of the claim and only in the appellate proceedings before the ld. CIT (A), the assessee first time produced the documentary evidence. Therefore, in these peculiar facts of the case, we do not find any defect or illegality in the initiation of proceedings under section 147/148 of the Act. The AO has done his best prior to initiating the proceedings under section 147/148 by conducting an enquiry in respect of the claim of deduction of ₹ 2.41 crores against the sale consideration of ₹ 2.43 crores - No substance or merit in the cross objection filed by the assessee. The same is dismissed.
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