Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1581 - AT - Income TaxCapital Gains - Nature of payment to execute an order of eviction - Addition for payment to vacant of unauthorized possession out of capital gain - to be treated as cost of improvement or not - Held that:- From the available records, it is noted that there was a dispute and Shri Babu Lal Meena and Shri Phool Chand Jhan were having the illegal possessin on the premises of the assessee. It is further noted that the assessee vide letter dated 17-03-2016 addressed to ACIT, Circle – 6,Jaipur had requested the AO to make enquiry if he has any doubt about the illegal possession of the premises by these two persons. AO had not given any adverse findings thereon. It is noted from the sale agreement made between the assessee wherein the assessee had received the amount of ₹ 45.00 lacs through cheque, the details of which are available at PBP 36 of sale agreement. The assessee had taken only ₹ 45.00 lacs through banking channel and ₹ 10.00 lacs was received by cash which was due to the reason that these illegal possession holder wanted the amount in cash. Hon'ble Karnataka High Court in the case of Mrs.June Perrett vs ITO [2007 (11) TMI 86 - KARNATAKA HIGH COURT] held that Payment to evict an unauthorized occupant can be treated as cost of improvement. CIT(A) is not justified in confirming the addition of ₹ 5.00 lacs which we direct to delete. - Decided in favour of assessee. Expenses claimed against the interest income shown under the head Income from other sources - Held that:- The assessee during the course of assessment proceeding submitted all these details filed before the AO who has made the addition of ₹ 8,02,854/-. CIT(A) has confirmed the action of the AO. From the available records before us, it is noted that the assessee has utilized the borrowed funds to purchase the agricultural land. As regards interest payment to Raj Kumari Agarwal and Aparjita Saini, it is noted that there were opening balances of the amounts in their accounts. Further the assessee has earned interest on the advances made to M/s. Feathertouch Polychem (P) Ltd. of ₹ 6,17,757/-. It is important to note that during the year the assessee has earned interest income of ₹ 13,95,012/- and paid the interest of ₹ 8,02,854/-. In view of these facts and circumstances of the case, we find no merit in the order of the ld. CIT(A) in sustaining the disallowance of interest - Decided in favour of assessee.
|