HEMANT JASHUBHAI GANDHI,SURAT vs. ACIT CIRCLE 1(3), SURAT

That CIT(A) has erred passing ex-parte order without considering adjournment request dtd 23/12/2024 seeking time up to dtd 07/01/2025 and erred in confirming repurchase of property legally purchased through agreement of sale and disallowance of Cost of Inflation of Rs.38,69,451/-

The CIT(A) has erred in confirming disallowance of Rs.4,76,250 (1.e.75% of Rs.6,35,000/-) being Cost of Improvement fully incurred by the 3. That the disallowance of Cost of Inflation of Rs.38,69,451/- & disallowance of Cost of Improvement of Rs.4,76,250/- of may kindly be deleted or alternatively the case Asst. Year : 2016-17 - 2– may kindly be set aside to CIT(A) with direction to give reasonable opportunity of being heard.

The appellant craves leave to add, amend, alter, vary and/or withdraw any or all the above grounds of Appeal.

With regard to Ground No. 1 relating to the indexed cost of inflation, we find that the issue has not been examined by the Assessing Officer in the correct perspective. Accordingly, the matter is restored to the file of the Assessing Officer for fresh examination and passing the order after due verification. Thus, this ground of appeal is allowed for statistical purposes.

In respect of Ground Nos. 2 and 3, the Assessing Officer made disallowance on account of indexed cost of inflation and cost of improvement, which was summarily confirmed by the Ld. CIT(A). Upon perusal of the records and the details of expenses filed by the assessee before us, which have been duly examined, we are of the view that the cost of improvement of Rs.4,76,250/- is allowable. Accordingly, the appeal of the assessee on Ground Nos. 2 and 3 is allowed.

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