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Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: SH. A.D. JAIN & SH. N. K. BILLAIYA
This appeal filed by the assessee is preferred against the order of the CIT(A)-1, Gurgaon dated 08.01.2016 pertaining to A.Y.2012-13.
The grievance of the assessee read as under :-
None appeared on behalf of the assessee inspite of notice.
We decided to proceed exparte. The DR was heard at length.
Case records carefully perused.
Briefly stated the facts of the case are that the assessee returned income of Rs.47,39,150/- on 31.07.2012. The return was selected for scrutiny under CASS. Accordingly statutory notices were issued and served upon the assessee.
During the course of the scrutiny assessment proceedings the AO noticed that the assessee has sold residential property at Gurgaon for Rs.2.15 crores on 24.10.2011 which was acquired on 03.03.2006 for Rs.39,11,034/-. The AO further noticed that the assessee has added to Rs.5,10,858/- in cost of acquisition of the property on account of cost of improvement. The indexation cost of the property was taken at Rs.69,84,276/-. Accordingly long term capital gain was computed at Rs.14515724/-. As the property was jointly owned by the assessee with his wife LTCG was declared at Rs.72,57,862/-. The AO further found that the assessee has claimed deduction u/s. 54 by entering into agreement of purchase of C-011 Block –C, International City, Gurgaon on 12.04.2012.
The assessee was asked to furnish the proof of the purchase of property / completion certificate to support his claim for exemption u/s. 54 of the Act. On receiving no supporting documentary evidences the AO dismissed the claim and made the addition of LTCG of Rs.7661307/-.
The assessee carried the matter before the CIT(A). It was strongly contended that the assessee had deposited Rs.75 lacs in Capital Gain Account Scheme. It was further explained that the assessee and his wife till 25.11.0213 have invested Rs.2,64,33,301/- in construction of the new residential house.
The CIT(A) dismissed the contention of the assessee by holding that no documentary evidences have been furnished before the AO.
The DR strongly relied upon the findings of the AO.
We have carefully considered the orders of the authorities below. We are of the considered view that the facts have not been properly appreciated by the lower authorities for want of evidence.
In our considered opinion the claim of the assessee that a deposit of Rs.75 lacs was made in the Capital Gains Accounts Scheme cannot be brushed aside lightly. A perusal of the order of the lower authorities show that the claim of the assessee has been denied because no documentary evidences have been furnished alongwith the return of income. There is no provision wherein the assessee has to furnish documentary evidence with a return filed electronically.
In the interest of justice we restore the entire issue to the files of the AO. The assessee is directed to furnish necessary documentary evidences in support of his claim of deduction u/s. 54 of the Act. The AO is directed to verify the same and decide the issue as per the provisions of the law.
In the result, the appeal of the assessee is allowed for statistical purpose.
The order is pronounced in the open court on 15.03.2022 in the presence of Ld. Sr. DR.