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2023 (11) TMI 1048 - ITAT JAIPURComputation of capital gain - Disallowance of Brokerage Payment paid in respect of sale of land - addition made on the ground that none of the person to whom brokerage payment had been claimed to have been made had signed at any place in the registered sale document or initial sale agreement - HELD THAT:- From the record, it is noted that the assessee had submitted the copy of ID Proof i.e. Aadhar Card showing name and address of the above 05 persons. It is also noted that the assessee had submitted the payment voucher and signed receipt of brokerage payment. The Bench feels that there is no requirement of getting signature or putting the name of signature of the broker which is not part and parcel of the agreement and it is nowhere indicated in the registry about the name of the broker. We also find that the assessee had entered into agreement of land on 25-03-2023 but claimed payment of brokerage on 22-06-2015. To this effect, the Bench noted arguments of the ld. AR of the assessee wherein he prayed that the brokerage is paid only after complete receipt of sales consideration or after the date of registry. In this case, it is noted that the sale agreement was entered on 25-03- 2013 (PB No. 43-47) on receipt of payment advance of Rs. 5.00 lacs. However it was decided by the parties that complete payment would be paid within 3 years and thus thereafter the registered sale deed got executed on 22-06-2023 which is registered before the Registering Authority and thus the brokerage was paid by the assessee on completion of the job. Thus no justification in the orders of the lower authorities to make disallowance as it is a mutual agreement between the purchaser and broker to get the deal done. It is also noteworthy to mention from the affidavit of the assessee Shri Ashok Singh that he had paid brokerage in cash to the above mentioned five persons. Hence, taking into consideration the facts and circumstances of the case, the brokerage amount is allowed.
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