Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Shri Bhim Singh Versus The ITO, Ward- 5 (1) , Jaipur

Disallowance of deduction claimed u/s 54 - CIT(A) confirming disallowance of the cost of construction claimed in the computation of capital gains - Held that:- It is clear from the facts on records that sale deed which is an important document for transfer of property and the basis of transfer of property u/s 2(47) does not contain any reference to sell / transfer of any residential house or construction. Therefore, no legal inference can be drawn in favour of the assessee on this issue. Despite .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

niversal rule to provide cross-examination in each and every case, more so when evidence on record is palpable against the assessee. Even if the evidence of Surendra Kumar Sen is excluded, the evidence on record is clinched against the assessee. In view thereof, the cross examination of Shri Surendra Kumar Sen becomes irrelevant as sufficient material is on record even if the statement of vendee is ignored. In view thereof uphold the order of the lower authorities and reject the claim of the ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the case, the ld. CIT(A)-II Jaipur is wrong, unjust and has erred in law in upholding of adoption of the stamp duty value of ₹ 8,68,230/- for the purpose of calculating the capital gain instead of actual selling price of ₹ 6.50 lacs which was the fair market value at the time of sale as claimed by the assessee without obtaining valuation of fair market value from Valuation Officer in spite of request by the assessee. 2. The ld. CIT(A)-II, Jaipur is further wrong, unjust and has erre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

However, in the computation of income, the assessee while offering capital gains thereon, claimed that he has incurred the cost of construction of ₹ 2.50 lacs for leveling of land, construction of boundary wall, one room, kitchen and lat bath, the work was completed on 31-01-2008. The AO during assessment proceedings inquired about the sale deed mentioning only sale of plot and asked the assessee to submit the details, evidence and sources for claim of alleged cost of construction incurred .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed the claims of the assessee by following observations (a) There is enough evidences available on record to prove that there was no construction on the plot of land sold by the assessee which may be detailed as under:- (i) In para 2 at pages 5 of the registered sale deed dated 15-02-2008, it is clearly mentioned that there is no construction on this plot of land. Accordingly, the stamp duty and registration charges have been levied by the Sub- Registrar on the value of land only. (ii) Vide orde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ee . (b) The objection of ld. AR regarding the opportunity of cross examination of the buyer Shri Surendra Kumar Sen is not tenable. Copy of his statements were supplied to the assessee. He is the buyer of the plot sold by the assessee. His statements are supported with documentary evidence in the form of registered sale deed which has also been signed by the assessee. (c) Regarding application of Section 50C also, the submissions of ld. AR do not help the assessee. Section 50C is deeming provis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, Capital Asset means property of any kind held by an assessee …….. Thus the contention of capital assets also covers the lease right. This contention of ld. AR is unfounded and hence not acceptable. Therefore, the claim of alleged cost of construction and deduction u/s 54 was disallowed as property sold in question was not a residential house but only a plot of land. 3.2 Aggrieved, the assessee preferred first appeal before the ld. CIT(A) who upheld the order of the AO on these is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pellant to produce these persons for examination since the claim of construction was against the facts noted in sale deed. However, appellant did not produce these persons and therefore, the claims made in affidavit could not be confirmed Assessing Officer called the buyer of the property and examined him on oath. The buyer categorically denied any construction on the plot of land purchased by him. He even denied having boundary wall on the plot of land which clearly shows that appellant s claim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d for cross-examination of the buyer and therefore, AO could not have allowed such opportunity. By providing a copy of statement of the buyer, AO discharged his onus. If appellant disputed any part of the statement, he could have countered the same by necessary evidences or could have asked for cross examination. However, appellant did not do anything and therefore, the statement of the buyer together with sale deed are sufficient evidences to prove that there was no construction on the plot of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as AO has referred to such request in the assessment order. Therefore, the finding of the ld. CIT(A) is erroneous and opportunity of cross may be given to the assessee and the issue may be set aside. 3.4 On the other hands, the ld. DR contends that courts have held that there is no universal rule that in each and every case, the right of cross examination cannot be granted, it depends on the facts of that case. The assessee gave the names of the contractors i.e. Shri Moolchand (contractor) and S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

idences available on record demonstrated that no house was constructed. Once there is sufficient evidence on record to establish these facts against the assessee then there is no necessity of cross examination. Since the assessee failed to produce Moolchand, his affidavit has no evidentiary value. In view thereof, it is an established fact that no house was constructed by the assessee a false claim has been made to reduce the taxability and to somehow claim benefit of deduction u/s 54 of the Act .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: Duty Drawback & Input Credit - under GST

Highlight: Addition u/s 23(1)(a) - deemed rent - once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax under the head House properties income.

News: Haryana constitutes screening committee on anti-profiteering

Highlight: Valuation of imported goods - it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components.

Forum: Input tax credit

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

Highlight: Cenvat credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Manpower Service provider

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

Article: 20 Things You must know about E Way Bills in GST Law

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version