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2015 (12) TMI 1760 - AT - Income TaxEnhancement of rental income not sustaining the addition made u/s 48 - addition made on account of cessation of liability u/s 41(1) - Held that:- AO observed that the rent has not been revised, the assessee is expected to get higher rent in the relevant year are all on assumptions and presumptions without there being any evidence to that effect. With reference to the report of the Income Tax Inspector that, as a dubious from the AO’s assessment order that the lettable rental value in similar area in financial year 2008-09 is a minimum of ₹ 50/- per sq.ft., but, however, the CIT(Appeals) has rightly observed that the report of the Inspector in estimating the value cannot partake the assessment of an approved valuer, but for the reason of that the Income Tax Inspector is not technical person to submit valuation report. In absence of any evidence it is just improper to fix the rent on mere assumptions and presumptions, therefore, we confirm the order of the CIT(Appeals) on this issue and dismiss the ground no. 1 raised by the revenue. Deduction allowed on the expenditure incurred during the transfer of an asset deduction can be allowed on the expenditure incurred during the transfer of an asset and it clearly shows that the burden is on the assessee to demonstrate that the expenses incurred for the transfer of asset is fulfilled. In the case on hand also, the assessee produced the bill issued by M/s. Sood Realtors & Developers and the amount paid by the assessee by way of cheque, therefore, the ld. CIT(Appeals) has rightly applied the principle laid down by the ITAT Pune Bench in the case of KRA Holding & Trading Pvt. Ltd. [2011 (5) TMI 498 - ITAT PUNE]. We are of the view that the CIT(Appeals) was rightly justified in directing the Assessing Officer to allow the said deduction. Addition u/s 41 - Held that:- In the case on hand, the father of the assessee died long back, the said amount given by him as in the nature of personal loan to purchase a house property and also received from the estate of her father entered into the books of account of the assessee since long back. The assessee did not credit the said amount to her profit & loss account Therefore, in our view, scope of section 41(1)(a) is not applicable to the case on hand. Appeal of the Revenue is dismissed.
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