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2023 (4) TMI 686 - AT - Income TaxAssessment u/s 153C - Addition of Long Term Capital Gains - claim the cost of improvement and indexation cost - HELD THAT:- What has been sold by the assessee were merely piece of an open lands and not any constructed property. The assessee in the return of income had claimed the long term capital gain and in the said capital gain, the assessee had claimed the cost of acquisition and cost of improvement with indexation. In our view, the cost of improvement, is required to prove with contemporaneous evidence showing that some construction or improvements were carried out on the plot of land after its original purchase in the year 2004, and before it was sold by the assessee on 21.11.2015. The information contained in the sale deed (including the site plan) clearly shows that what has been sold by the assessee was a vacant piece of plot and not a built up property. To claim the cost of improvement and indexation cost, assessee has to furnish some evidence and in the absence of any evidence or information, then the information contained in the registered sale deed is required to be accepted. Further, the information contained in the registered sale deed relates to the assessee and therefore, we are of the opinion that the Assessing Officer was right in invoking the jurisdiction u/s 153C. Decided against assessee. Denying the benefit of indexation on cost of improvement incurred - There was no reason for the assessee to mention the incorrect extent of construction in the sale document, by virtue of which the assessee had transferred the land and the building if any existing thereon. In view of the above, we do not find any discrepancy in the decision of ld.CIT(A). We may point out that the law of evidence clearly provides that when there is any infirmity between the documents filed by the parties, the contents of the registered document will prevail over the other document. The assessee had failed to demonstrate by any evidence the cost of improvement like bills / vouchers, approval of the local authorities and claim of expenditure claimed in the earlier return of incomes. Assessee is not entitled to the relief claimed in these appeals. Even the case laws relied upon by the assessee are of no help as the facts of those cases are clearly distinguishable. Admittedly, none of the decisions cited supra dealt with the issue of appreciation of evidence of registered sale deed and claim of the cost of improvement and indexation based on the certificate issued by the Civil Engineer. Thus, ground No.3 of the assessee is also dismissed. Accordingly, the appeal of the assessee is dismissed.
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