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Mohinder Kumar Goyal Versus ITO, Ward 5 (1) , Faridabad.

Capital gain computation - transfer of leasehold right - cost of acquisition - Held that:- The amount added by the AO is admittedly the sale consideration for the transfer of leasehold right which has been taken as short-term capital gain in the hands of the assessee. Any income chargeable to tax under the head ‘Capital gains’ is computed by reducing cost of acquisition, cost of improvement and expenses incurred in relation to the transfer of property from the full value of consideration receive .....

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re is no material available on record to show the amount representing such cost of acquisition of the property in the hands of the assessee. As such, the ends of justice would meet adequately if the impugned order on this issue is set aside and the matter is restored to the file of AO for computing the capital gain in the hands of the assessee, after reducing the cost of acquisition, etc. from the full value of consideration. - Addition under the head ‘Telephone expenses' - Held that:- After .....

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clined to disturb the sustenance of this addition because it was the assessee himself who agreed for the addition when certain personal expenses were found to have been incurred through his credits that were debited in the books of account of the assessee. Therefore, uphold this addition. - Addition of conveyance expenses, staff welfare, inward remittance, printing, advertisement and sale promotion, etc. - Held that:- AO made disallowance of ₹ 10,000/- out of such expenses. No ground w .....

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or adjudication. Since the ground for disallowance of ₹ 10,000/- out of the above referred five expenses does not arise from the impugned order, the same cannot be entertained. Even otherwise, the disallowance of ₹ 10,000/- out of the above expenses due to lack of proper evidence, etc., appears to be reasonable - Addition on account of donations u/s 80G - no documentary evidence was filed in support of this claim - Held that:- A copy of the computation of income filed on page 1 o .....

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our of assessee - ITA No.885/Del/2016 - Dated:- 6-6-2016 - SHRI R.S. SYAL, ACCOUNTANT MEMBER For The Assessee : Shri R.S. Adlakha, Advocate For The Department : None ORDER This appeal filed by the assessee is directed against the order passed by the CIT(A) on 4.12.2015 in relation to the assessment year 2008-09. 2. At the very outset, it is mentioned that the Department has moved adjournment applications in all the cases fixed before the Bench today. The ld. AR appearing for the assessee strongl .....

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stant dispute is only about the second item of cash deposit in the bank account amounting to ₹ 6,93,000/-. On being show caused to explain the nature of this cash deposit, the assessee submitted that the Board of Directors of Fusion Electrodes India Pvt. Ltd., authorized the assessee to sell the land registered in the name of the company. It was only pursuant to such authorization by the company that the assessee sold the property and received a sum of ₹ 6,93,000/-. The AO noticed fr .....

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levant to reproduce the Board Resolution pursuant to which the assessee sold the leasehold right in the land, as under:- Resolved that the company and its present Director relinquish all their rights in the lease hold land held in the name of its Director Mr. Mohinder Goyal at Gurukul Inderprastha, Sarai Khawaja, Faridabad, measuring 2 Kanal 14 Marla (1640 s. yards.) This is further resolved that from today i.e., 04.05.2007, he (Mohinder Kumar Goyal) is the absolute owner of the above land and g .....

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he company relinquished all the rights in the leasehold land in favour of the assessee, who was earlier shareholder of this company before liquidation, w.e.f. 4.5.2007 from which date the assessee became the absolute owner of the above land and got all the rights to the title of the land. The text of the Resolution passed by the company belies the contention put forth before the AO that the assessee was simply assigned the task of selling the property for and on behalf of the company. To a perti .....

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ee was given right in this leasehold property. In view of the foregoing discussion, it becomes clear that the assessee s contention about his selling the property for and on behalf of the company does not stand anywhere. Income from the sale of this property is liable to be taxed in the hands of the assessee alone. 6. The next pertinent question is about the computation of capital gain. The amount of ₹ 6,93,000/- added by the AO is admittedly the sale consideration for the transfer of leas .....

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the assessee acquired the ownership of property in satisfaction of his claims due from the company, it is this amount, being the claim due from the assessee company, in satisfaction of which the assessee was given lease hold right in the property, would become the cost of acquisition in the hands of the assessee. There is no material available on record to show the amount representing such cost of acquisition of the property in the hands of the assessee. As such, I am of the considered opinion .....

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s. The assessee claimed telephone expenses at ₹ 72,973/-. The AO made disallowance of ₹ 14,600/-. The assessee argued before the ld. CIT(A), which was also mentioned in the office note of the assessment order, that a sum of ₹ 48,623/- was disallowed by the assessee himself towards expenses of personal nature. Such disallowance was suo motu made @ 20% of telephone expenses and vehicle depreciation. The ld. CIT(A) restricted the addition to ₹ 8,000/- against which the asses .....

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. 9. Ground No.3 is against confirmation of addition of ₹ 50,000/- towards personal expenses in the purchases made through credit cards. On perusal of the copies of credit cards maintained by the assessee, the AO made the following details :- Particulars Card No. Expenditure incurred 1. Stan Chart Card 5444388756041044 & 4196074946138899 Rs.1,65,566/- 2. ICICI Bank 447747353687550 Rs.3,78,719/- 3. HDFC 4050281000052339 Rs.3,89,109/- 4. AMEX 376939328161000 Rs.3,61,980/- 5. American Exp .....

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ition because it was the assessee himself who agreed for the addition when certain personal expenses were found to have been incurred through his credits that were debited in the books of account of the assessee. I, therefore, uphold this addition of ₹ 50,000/-. This ground fails. 12. The next ground is against confirmation of addition of ₹ 10,000/- out of conveyance expenses, staff welfare, inward remittance, printing, advertisement and sale promotion, etc. The assessee incurred the .....

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