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2016 (11) TMI 291 - ITAT AHMEDABADPenalty u/s 271(1)(c) - capital gain computation - indexed cost of improvement rejected - Held that:- Assessee’s valuation report itself does not indicate any fact about incurring of any cost of improvement. The valuation report is given by a Registered Valuer, which is relied on by the assessee. Assessee cannot disregard its own evidence based on one Shri M.C. Patel vague statement that over a period of seven years he has incurred expenditure around ₹ 2 lacs on behalf of the assessee. There being no year-wise break-up or objectivity in the statement, the same cannot be relied on as against the statutory valuation report. The assessee’s explanation is bereft of any evidence or plausibility. This is grossly against the surrounding circumstances, human conduct and preponderance of possibilities as held by the Hon’ble Supreme Court in the case of Sumati Dayal (1995 (3) TMI 3 - SUPREME Court ). The assessee filed valuation report alongwith return of income and its claim of cost of improvement runs contrary to the evidence of valuation report. In view of these glaring inconsistencies, the Hon’ble Supreme Court judgment in the case of Reliance Petroproducts Pvt Ltd (2010 (3) TMI 80 - SUPREME COURT ) cannot be applied to assessee’s case. Thus no infirmity in the orders of the authorities below confirming the penalty which are upheld. - Decided against assessee.
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