SHREE NAND CO-OPERATIVE HOUSING SOCIETY LTD.,VADODARA vs. THE INCOME TAX OFFICER, WARD-1(2)(5), VADODARA

All the ground of appeal of the assessee are connected to the issue of addition of Rs.50,21.630/ on account of long term capital gain and not

The case of the assessee was reopened by issuing of notice u/s. 148 of the act on 24th March, 2014. The assessing officer had information in his possession that the assesse had sold an immoveable property for a consideration for Rs. 70 lacs on 19th July, 2010 which was valued at Rs. 1,19,82,600/- according to jantri value on the basis of stamp duty paid. The assessee has failed to declare the same in his return of income according to provision of section 50C of the act. In response to notice u/s. 148 the assessee has filed return of income declaring income at Rs. nil. Assessment u/s. 143(3) r.w.s. section 147 of the act was completed on 30th May, 2015 determining total income at Rs. 50,21,630/- under the head long term capital gain on the sale of aforesaid property.. The assessing officer has not allowed the cost of improvement expenses on the ground that assessee has failed to furnish supporting documentary evidences in respect of cost of improvement made to the immoveable property.

The aggrieved assessee has filed appeal before the ld. CIT(A) . The Ld. CIT(A) has restricted the sale price of the transferred asset at Rs. 88,97000/ as determined by the DVO as against Rs. 1,19,82,600 adopted by the assessing officer. However, the Ld. CIT (A) dismissed the claim of payment of Rs. 10,24,245/ towards payment of Land Levelling Expenses to

During the course of appellate proceedings before us, the ld. counsel has contended that the assessing officer has ignored the submission of the assessee and passed assessment order expediently without giving further opportunity. It is also contended that ld. CIT(A) has not accepted these facts and dismissed the claim of the assessee without any sufficient reason. On the other hand ld. departmental representative has placed reliance on the decision of lower authority. We have heard the rival contention and perused the material on record carefully.

After considering the aforesaid fact and submission of the assessee we observe that provisions of section 50C was correctly applied to the case of the assessee u/s 143(3) r.w.s.148 of the act. Further we do not find any infirmity in the decision of the Ld. CIT(A) on directing the assessing officer to adopt the sale price of the transferred asset at Rs.88,97,000/ instead of Rs. 119,82600/ adopted the assessing officer. Therefore we do not find any merit in this ground of appeal of the assessee.

However, regarding the dismissal of the claim of assessee for cost of improvement in respect of payment of Rs. 10,24,245/ towards Land Levelling Expenses to Vadodara Municipal Corporation, the assessing officer has not allowed the claim of the expenditure on the ground that the documentary evidences in respect of cost of improvement were not submitted by the assesse. During the course of appellate proceedings before

In the light of the above material facts we are of the view that there was sufficient cause because of which the assessee could not produce the relevant documentary evidence in support of claim of payment of Rs. 10,24,245/ towards payment of Land Levelling Expenses to Vadodara Municipal Corporation before the assessing officer. We consider it appropriate to remit this aforesaid issue of claim of cost of improvement to the file of the Ld.CIT(A) for adjudicating a fresh after examination of the documentary evidences. Accordingly, this issue of ground of appeal is

In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 18-02-2019 Sd/- Sd/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 18/02/2019 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,