SEERANGAN SAGADEVAN,SALEM vs. ITO, WARD 1(4)`, SALEM

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-01- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 21-12-2019. At the time of hearing, none appeared for assessee. The Ld. Sr. DR pleaded for dismissal of the appeal.

In the assessment order, Ld. AO denied 5% of cost of construction of Rs.29.92 Lacs while computing capital gains since the assessee could not substantiate the same. The assessee produced certificate from the engineer wherein he had given completion certificate for Rs.31.60 Lacs. The Ld. CIT(A) upheld the disallowance.

We find that substantial cost was accepted by Ld. AO to the extent of 95% and therefore, there was no reason to make the impugned disallowance. The assessee had furnished certificate from engineer in this regard. Therefore, impugned disallowance has no merits. We delete the same and direct Ld. AO to re-compute the income of the assessee. 4. The appeal stand allowed. Order pronounced on 20th May, 2024.