TMI Blog2021 (11) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 10.25 lakhs). It is also an undisputed fact that the assessee has declared salary income of around ₹ 20 lakhs during the year under consideration. Accordingly, we are of the view that there is no reason to disbelieve the claim of the assessee that the above said sum of ₹ 3.85 lakhs was spent out of salary savings. In view of the foregoing discussions, we are of the view that the claim of own funds of ₹ 14.10 lakhs deserves to be accepted. Accordingly, we modify the order passed by Ld. CIT(A) and direct the A.O. to delete the addition of ₹ 14.10 lakhs. - ITA No. 1724/Bang/2017 - - - Dated:- 1-11-2021 - George George K., Member (J) And B.R. Baskaran, Member (A) For the Appellant : Jinitha Chatterjee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - ₹ 24,00,000/- Cost of construction - ₹ 44,10,000/- Total - ₹ 68,10,000/- 4. It was submitted that the land was purchased on 9.12.2002 for a consideration of ₹ 4,80,000/- and the market value in 2006 was adopted in the valuation. Accordingly, it was submitted that the cost of construction of ₹ 44.10 lakhs alone is required to be explained. It was submitted that the assessee had obtained loan of ₹ 30 lakhs and the construction was carried out in 2 years namely in the years relevant to assessment years 2006-07 2007-08. It was submitted that the bal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017 passed by Ld. CIT(A)-5 Bengaluru and in ITA No. 1073/SAL/CIT(A)-5/2011-12. The Ld. A.R. submitted that the Ld. CIT(A) has deleted the addition of ₹ 15.90 lakhs made by the A.O. holding that the cost of construction should be taken as ₹ 44.10 lakhs only. The Ld. CIT(A) also accepted the claim of the assessee that own funds of ₹ 10.25 lakhs was used for construction during the year relevant to the assessment year 2006-07. Accordingly, he deleted the disallowance of ₹ 5.66 lakhs made by the A.O. 8. The Ld. A.R. submitted that the Ld. CIT(A) has accepted availability of own funds to the extent of ₹ 10.25 lakhs in assessment year 2006-07. The aggregate amount of own funds used by the assessee for constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in two years namely in the years relevant to assessment year 2006-07 2007-08. The assessee has spent aggregate amount of ₹ 14.10 lakhs in two years namely ₹ 10.25 lakhs in assessment year 2006-07 ₹ 3.85 lakhs in assessment year 2007-08. We notice that the Ld. CIT(A) has accepted the claim of salary savings to the extent of ₹ 10.25 lakhs in assessment year 2006-07. Hence, what is required to be explained during the year under consideration is the balance amount of ₹ 3.85 lakhs (₹ 14.10 lakhs (minus) ₹ 10.25 lakhs). It is also an undisputed fact that the assessee has declared salary income of around ₹ 20 lakhs during the year under consideration. Accordingly, we are of the view that there ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
