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Shri Shivkumar Lakshman, Versus The Income Tax Officer, International Taxation – I, Chennai

2015 (5) TMI 1061 - ITAT CHENNAI

Disallowance of indexed cost of improvement - Held that:- The Assessing Officer, after examining the bills and vouchers and other documents, came to a conclusion that the claim could not be accepted. The fact remains that the bills and vouchers were produced before the CIT(Appeals) and the same were sent to the Assessing Officer. The assessee’s claim was only a sum of ₹ 3,07,946/- as cost of improvement. Improvement can be made even to the farm land. It is not necessary that the improvemen .....

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ess of the amount claimed by the assessee. Accordingly, this Tribunal is of the considered opinion that the assessee would have spent ₹ 3,07,946/- as per the letter filed before the lower authorities with regard to improvements. Therefore, there is no justification in disallowing the claim of the assessee. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to allow the claim of the assessee towards cost of improvements to the extent of S .....

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nsideration as reflected in the sale deed has to be adopted in the absence of any other material to indicate that the assessee has received any on-money over and above the amount disclosed in the sale deed. In this case, it is nobody’s case that the assessee received on-money over and above the sale consideration disclosed in the sale deed. Therefore, this Tribunal is of the considered opinion that the Assessing Officer has to adopt the actual sale consideration of ₹ 90 lakhs for the purpo .....

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D SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER Appellant by : Ms. Hemalatha.K, ACA Respondent by : Sh.N. Madhavan, JCIT O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-16, Chennai, dated 23.01.2015, and pertains to assessment year 2010-11. 2. The first issue arises for consideration is with regard to disallowance of indexed cost of improvement to the extent of ₹ 3,07,946/-. 3. Ms. Hemalatha. .....

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39;the Act') on the investment made in the immovable property by him, which was purchased from M/s Appasamy Real Estates Ltd. However, the Assessing Officer refixed the sale value at ₹ 1,06,17,750/- as per the guideline value adopted by the Sub-Registrar, by applying the provisions of Section 50C of the Act. The Ld. representative further submitted that the assessee claimed that an amount of ₹ 2,25,600/- having spent in improvement of the property. However, the same was disallowe .....

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ontrary, Shri N. Madhavan, the Ld. Departmental Representative, submitted that the assessee claimed improvements to the extent of ₹ 3,07,946/-. However, the Assessing Officer disallowed the same. The assessee had not produced any evidence before the lower authorities. The bills, vouchers, etc. for the improvement said to be made to the landed property were not produced before the Assessing Officer. The Ld. D.R. further submitted that a statement from Shri T. Karthik was recorded and he cou .....

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laim of the assessee on the ground that the immovable property was described as Farm Land in the sale deed. The Assessing Officer further found that there was no building on the said property. Hence, there could not have been any improvement. Accordingly, he disallowed the claim. From the material available on the record it appears that the assessee had filed a copy of the letter along with certain bills and vouchers before the CIT(Appeals) and the CIT(Appeals) also forwarded the same to the Ass .....

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ppose, the vacant land is low lying and it requires fencing, the assessee has to necessarily incur expenditure to keep the land to a marketable condition. Under normal circumstances, this Tribunal would have remitted back the matter to the file of the Assessing Officer for verification. Since what was claimed was only ₹ 3,07,946/-, this Tribunal is of the considered opinion that it may not be necessary to remit back the matter in view of the smallness of the amount claimed by the assessee. .....

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al is with regard to computation of capital gain. 7. Ms. Hemalatha.K, the Ld. representative for the assessee, submitted that the assessee sold the property for ₹ 90 lakhs. The Assessing Officer by provisions of Section 50C of the Act has taken the sale consideration at ₹ 1,06,17,750/- and computed excess capital gain. According to the Ld. representative, for the purpose of the considering exemption under Section 54F of the Act, the sale consideration has to be taken as reflected in .....

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. submitted that the Assessing Officer has rightly adopted the provisions of Section 50C of the Act. 9. We have considered the rival submissions on either side and perused the relevant material on record. The question arises for consideration is that for the purpose of granting deduction under Section 54F of the Act, whether the sale consideration disclosed in the sale deed has to be taken or the value adopted by the Sub- Registrar for registering the document has to be taken. This Tribunal is o .....

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