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2023 (2) TMI 347 - ITAT BANGALOREComputation of LTCG - determine the cost of construction of the villa - reference to DVO - assessee was unable to furnish any documentary evidence in support of her claim that she had incurred an expenditure on cost of construction (indexed to cost of improvement claimed by the assessee) - AO reworked the cost of improvement by adopting prevailing guidance value rate (construction of villa between AY 2009-10 and AY 2012-13) - HELD THAT:- AO had adopted the guidance value as cost of construction primarily for the reason that the valuation report submitted by the assessee is not backed by any evidence/proof of expenditure incurred. The assessee, however, submitted that the details called for were duly submitted before the AO and the AO is not justified in stating the assessee has not provided details in support of the cost incurred for construction of the villa. On perusal of the proof submitted as regards to the cost of construction/ improvement of property, we find the assessee has filed before us the statement of cost of construction, certain bills towards expenses/purchases, details of payments made to the builder/contractor, etc. We find confirmation of such payments from builder/contractor and the architect are not on record. The paper book submitted before the Tribunal is not certified that the material produced before the Tribunal has been placed before the AO and the DRP. There is no clarity whether the evidences that are produced before the Tribunal has been on the record before the AO and the DRP. Hence, in the interest of justice and equity we are of the view that the matter needs fresh examination by the AO. Accordingly the issues raised in this appeal are restored to the file of the AO. AO is directed to adopt the actual cost of construction in respect of the villa. The assessee shall provide necessary proof such as confirmation from the builder/architect with regard to the payments received from the assessee, the invoice incurred on cost of construction, etc. In the event the assessee is not able to prove the actual cost of construction AO shall be at liberty to refer the matter to the Valuation Officer to determine the cost of construction of the villa (to rebut the valuation report submitted by the assessee). Appeal filed by the assessee is allowed for statistical purposes.
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