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2020 (4) TMI 709 - AT - Income TaxReopening of assessment u/s 147 - AO issued notice U/s 148 on account of escapement of income on the basis of AIR information - escapement of income is capital gains arising on the sale transaction of the property - not allowing the benefit of cost of improvement and brokerage paid while calculating the short term capital gain - HELD THAT:- Where the AO is in possession of information that the assessee has sold a property during the year under consideration and the same has not been reported in the return of income, it is clearly a case of escapement of income in terms of capital gains which will arise on sale of such property. Basis such tangible piece of information even where received through AIR, where the AO forms a prima facie opinion that the income has escaped assessment and has recorded the reasons and sought the permission from the higher authorities before issue of notice u/s 147 we donot see any infirmity in the action of the AO in acquiring jurisdiction under section 147 - reasons for escapement of income is capital gains arising on the sale transaction of the property and not that sale consideration is less than the value adopted for stamp duty purposes, therefore, mere inter- change of sale consideration and value adopted for the purposes of stamp duty in the reasons so recorded cannot be treated as fatal which can deny the acquisition of jurisdiction by the AO. Further, basis this tangible piece of information in possession of the AO which shows that capital gains has escaped assessment, where the approval has been accorded by the higher authorities, we donot see any infirmity therein. Not allowing the deduction of expense incurred by the assessee on account of cost of improvement of the house property and the transfer expenses - Where certain expenditure has been incurred before selling the property, the assessee can claim the same provided he is able to substantiate the same through any verifiable evidence. In the instant case, there is nothing on record which remotely support the contention so advanced by the assessee either in terms of any physical attributes of the property at the time of purchase and at the time of sale of the said property or any third party evidence which corroborates the act of incurrence of such expenditure as so claimed by the assessee - for claiming brokerage expenses, the assessee has to submit some evidence in terms of the person to whom the brokerage has been paid and his involvement in the sale transaction, however, there is nothing on record in this regard and therefore, we donot see any infirmity in the order of the CIT(A) in sustaining the disallowance of cost of improvement and brokerage expenses. In the result, the ground of appeal is dismissed. Addition u/s 68 - Assessee has submitted necessary affidavits in support of gift of money received from his family members and close relatives. The affidavits contain the necessary particulars about the donor, their address, PAN and Aadhaar number as well as their current occupation and source of money so gifted to the assessee. In absence of any material on record disputing the contents of the affidavits so filed by the assessee, the initial onus cast on the assessee has been satisfied and the addition so sustained by the ld CIT(A) is hereby deleted. In the result, the ground of appeal is allowed.
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