TMI Blog2010 (11) TMI 677X X X X Extracts X X X X X X X X Extracts X X X X ..... ards improving the title of the land and to avoid further litigation - Thus decided in favour of assessee. Stamp duty and Registration fee - As per the terms and conditions mentioned in the copies of the sale agreements, the vendee had to bear the stamp duty and registration fees. Hence, we are not inclined to accept the contention of the assessee that he has borne the stamp duty and registration fees while selling the lands to different persons - Decided against of assessee. Deduction on brokerage - It is common and general practice to incur some expenditure on account of brokerage for sale of plots - To meet the ends of justice, it ia estimate that the expenditure on account of brokerage at 2% of the total sale consideration in the absence of any supporting evidence of such expenditure claimed. Hence, assessee appeal is allowed in part. - ITA No.462/Hyd/2008 - - - Dated:- 30-11-2010 - G.C. Gupta, Akber Basha, JJ. M.V.R. Prasad for the Appellant A. Tripathy for the Respondent Per: Akber Basha: This appeal of the assessee is directed against the order of the CIT (A)-V, Hyderabad dated 15-1-2008 and it pertains to the assessment year 2003-04. 2. Brief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000-01. Hence, these transactions cannot be considered as adventure in the nature of trade. Regarding expenditure of Rs.22,19,907, claimed for laying of roads, drainage system, etc., the assessee referred to the Valuation Report obtained from the approved MCH Structural Engineer and submitted that considering the extent of land and nature of activity, the same is reasonable. The assessee further submitted that they have paid stamp duty and registration fee on sale of their plots as per the terms and conditions between them and purchasers. In this context, the assessee referred to the confirmation letters obtained from the purchasers which have been filed along with the return of income. The assessee further submitted that they have incurred brokerage on sale of plots, and the expenditure claimed on this account is reasonable and it is further submitted that as the income arising from sale of her agricultural land is long term capital gains, she has claimed deduction under section 54F of the Act towards cost of construction of house property made in Thungaturthi village, Nalgonda District. However, the assessing officer has not accepted such explanation of the assessee and he noted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has incurred the expenditure towards laying of roads, drainage system etc. The assessee spent the amount towards the above expenditure to get better price for her property. It was contended that the expenditure incurred towards development of plots should have been allowed as expenditure. The assessee being an agriculturalist has not maintained full vouchers/bills for the above work. She has furnished a statement of such expenditure from an approved Engineer. It was contended that considering the extent of land and activities carried out in the layout towards development, the expenditure incurred is quite reasonable. It was further submitted that the assessing officer disallowed the above expenditure as it was not incurred during this year. It was submitted that expenditure incurred by the assessee in earlier years should be allowed as expenditure as the same has to be considered as opening work-in-progress account. As the expenditure transferred to work-in-progress account year wise, the total expenditure incurred in the opening work in progress/cost of the property of the assessee, should have been allowed as expenditure at the time of sale. In support of his claim, he filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground of appeal is with regard to the payment of Rs.4,50,000 to the previous owners for securing uninterrupted right over the land. We find that the assessee has added this amount for computing the indexed cost of acquisition of the land. In the return, the assessee has filed photocopies of 5 receipts of Rs.1 lakh each in support of the claim of the above payment made to the family members of the previous owners of the said land. However, the assessing officer observed that the assessee has not furnished details of payments like mode of payment, whether paid in cash or cheque, bank account particulars and sources of the payment and hence the assessing officer disallowed the entire claim of the assessee while computing the capital gains and CIT(A) also confirmed the disallowance. The learned a counsel for the assessee submitted that the amount of Rs.4.50,000 was paid to the sons of previous owners who were in the possession of the land for securing uninterrupted right over the said land by making the payment, the assessee improved the title of the land and hence the said expenditure has to be allowed as deduction under section 48(ii) of the Act while computing capital gains. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. The learned counsel for the assessee reiterated the same submissions before us which were submitted before the first appellate authority. We find that the payment towards stamp duty and registration fee has to be met by the purchaser only and not by the vendor. The confirmation letters obtained from the individual purchasers, the first appellate authority rightly observed that the same are undated and contained signature of the assessee only. As per the terms and conditions mentioned in the copies of the sale agreements, the vendee had to bear the stamp duty and registration fees. Hence, we are not inclined to accept the contention of the assessee that he has borne the stamp duty and registration fees while selling the lands to different persons. In view of the above, we do not see any infirmity in the orders of the lower authorities below and we uphold the action of the CIT (A) on this issue and reject the ground raised by the assessee. 8. Fifth and last ground of appeal is with regard to disallowance of deduction on account of brokerage of Rs.9,36,650. It was submitted before the first appellate authority that the assessee has incurred expenditure of this amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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