Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (11) TMI 291 - ITAT AHMEDABAD

2016 (11) TMI 291 - ITAT AHMEDABAD - TMI - Penalty u/s 271(1)(c) - capital gain computation - indexed cost of improvement rejected - Held that:- Assessee’s valuation report itself does not indicate any fact about incurring of any cost of improvement. The valuation report is given by a Registered Valuer, which is relied on by the assessee. Assessee cannot disregard its own evidence based on one Shri M.C. Patel vague statement that over a period of seven years he has incurred expenditure around &# .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alongwith return of income and its claim of cost of improvement runs contrary to the evidence of valuation report. In view of these glaring inconsistencies, the Hon’ble Supreme Court judgment in the case of Reliance Petroproducts Pvt Ltd (2010 (3) TMI 80 - SUPREME COURT ) cannot be applied to assessee’s case. Thus no infirmity in the orders of the authorities below confirming the penalty which are upheld. - Decided against assessee. - ITA No. 1394/Ahd/2013 - Dated:- 30-9-2016 - Shri R. P. Tolan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alongwith a valuation report. In the computation of capital gains, assessee claimed an amount of ₹ 9,28,093/- u/s 48 towards indexed cost of improvement. As per valuation report, the value of the property was worked out at ₹ 1,05,000/- and there was no mention of any cost of improvement. The AO disallowed the assessee s claim in this behalf and computed the capital gains accordingly. 3. Aggrieved, the assessee preferred first appeal which was dismissed on this issue which has been ac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the details supplied by the assessee in its return are found to be incorrect or erroneous or false, there is no question of inviting the penalty u/s 271(1)(c). Mere making of claim which is not sustainable in law, by itself will not amount to furnishing inaccurate particulars regarding the income of the assessee. d) Mere rejection of explanation is not sufficient and that revenue must go further and establish that there has been conscious concealment of particulars. e) The occurrence of 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

pect of expenses incurred on improvement was filed. No any evidence by way of bills etc. or details of parties to whom the payments were made for labour charges, excavator s charges etc. was furnished or made available or produced. ii) The Valuer in its report has not mentioned or made any report or remark as to improvement of land being carried out by the assessee. iii) The certificate dated 06.01.2010 by Village Administrative Officer of Shamsabad does not mention anything about improvement 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

d by the ld. CIT(A) by following observations:- 6. The penalty order u/s 271(1)(c) of the IT Act of the AO as well as the above submission of the appellant have been considered. The first ground of appeal of the appellant is that the AO has failed and has gravely erred in law and justice in not following the supreme court's judgment as explained and treated it to be an inaccurate particular and imposed penalty of ₹ 9,28,093/- . The second ground of appeal of the f appellant is that the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

curred on improvement could be filed by the appellant during the course of assessment proceedings. As per the AO, again, the valuer in its report has not mentioned or has not made any remark in respect of improvement of land. As per the AO, even the certificate dated 06/01/2010 by the Village Administrative Officer of Shamsabad does not mention anything about improvement of land by removing stone etc. from the appellant's land. As per the AO, the confirmatory statement of Shri M.C. Patel reg .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appellant to produce direct evidence regarding improvement of the land after a period of 30 years. The AR of the appellant in such submission dated 15/03/2013 has stated that the direct proof of expenditure cannot be produced after a long period of 30 years for the purpose of verification. Obviously and admittedly, the above claim of expenses of ₹ 9,28,093/- for improvement of land is without any documentary evidence and in no way such claim of the appellant can be accepted. Considering a .....

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 filed. Merely because the assessee could not file any bills and details, penalty cannot be levied. 5.1 The claim of capital gains was filed in the return of income. The Hon ble Supreme Court in the case of CIT vs. Reliance Petroproducts Pvt Ltd, [2010] 322 ITR 158 (SC) has held that if any claim is made in the return of income which is allowed by the AO, penalty u/s 271(1)(c) cannot be imposed for disallowance of any claim. 6. Ld. DR, on the other hand, vehemently contends that:- (i) In the v .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eliance Petroproducts Pvt Ltd (supra) is not applicable to assessee s case inasmuch as the assessee makes a claim which is contradictory to its own evidence, i.e., valuation report. The Hon ble Supreme Court judgment is not applicable to the case where the assessee deliberately makes a bogus claim. A mere cover-up by a confirmatory letter cannot convert assessee s deliberate attempt into a bona fide claim. (iv) The orders of the authorities below are relied upon. 7. I have heard the rival conten .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| 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