SHAIKH JAVED SHAIK IBRAHIM,,JALNA vs. INCOME-TAX OFFICER,,

The brief facts of the case as emanating from records are : The father of the assessee Shaikh Abrahim Abdul Wahed had sold ancestral agricultural land comprising in Survey No. 270, Mantha Bye-pass, Jalna admeasuring 1 Hector 10 R for a consideration of Rs.15,00,000/- vide Sale Deed No. 1669/2007 dated 08-05-2007. The said land falls within the Municipal limits of Jalna. The father of the assessee died on 26-05-2012. Neither the father of assessee nor his legal heirs including the present assessee filed any return of income disclosing Capital Gain on sale of land. Consequently, notice u/s. 148 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) was issued to the assessee. The assessee in response to said notice filed return of income disclosing Long Term Capital Gain of Rs.2,83,337/-. The Assessing Officer in assessment proceedings did not agree with the Long Term Capital Gain disclosed by the assessee and determined Long Term Capital Gain at Rs.88,68,120/-.

Shri M.K. Kulkarni appearing on behalf of the assessee submitted that the assessee is raising additional ground and filing additional evidence to contend that the acquisition value of the land was Nil. The ld. Counsel submitted that the land was conferred on the grandfather of the assessee through SANAD. Since, the land was Inaam land there is no cost of acquisition of land. The ld. Counsel filed an application for admission of additional evidence supported by an affidavit. The ld. Counsel submitted that the assessee could not placed SANAD documents on record as the same were not traceable at the time of proceedings before authorities below. After the death of the father of the assessee, the assessee had no clue and documentary evidence to show that the land in question is Inaam land. Now, the assessee has been able to locate documents to show that the land was conferred on the ancestors of assessee as SANAD for distinguished services. The ld. Counsel referred to copy of SANAD from Indian Soldiers Board dated 22nd July, 1939 and copy of SANAD conferring tile of Khan Sahib dated 1st January, 1932 on Subadar-Major Shaikh dade Hayat at pages 10 and 11, respectively of the paper book. The ld. Counsel

Shri Sanjeev Ghei representing the Department defended the impugned order. The ld. DR vehemently opposed the admission of additional evidence. The ld. DR submitted that the assessee had sufficient opportunity to furnish all the documents in support of his contentions. Now, the assessee is making a new case by claiming cost of acquisition of land as „Nil‟.

Both sides heard. Orders of the authorities below perused. The assessee has filed additional evidence and additional ground of appeal. The additional evidences filed by the assessee are : i. Copy of SANAD from Indian Soldiers Board. ii. Copy of SANAD conferring title of Khan Sahib on the grandfather of the assessee.

The assessee has filed affidavit citing reasons for not filing the above said SANAD documents before the authorities below. After perusal of the affidavit we are satisfied that the assessee had reasonable cause for not furnishing the said documents before the Assessing Officer or the Commissioner of Income Tax (Appeals). Therefore, the additional

In the result, the appeal of assessee is allowed for statistical purpose.