JAG DEVI,DELHI vs. DEL-W-(56)(6), DELHI

Heard both the parties at length. Case files perused.

Delay of 178 days in filing of the instant appeal is condoned in the larger interest of justice in light of Collector Land Acquisition vs. Mst. Katiji & Ors (1987) 167 ITR 471 (SC).

It transpires during the course of hearing that both the learned lower authorities have inter alia disallowed the assessee’s cost of construction of Rs.26,74,000/- and JAG Devi commission of Rs.77,000/-; respectively for the purpose of computing long term capital gains arising from sale/transfer of capital asset in question. The Revenue vehemently contends in this factual backdrop that it was the assessee’s onus only to plead and prove all the relevant facts on both the foregoing issues.

I have given my thoughtful consideration to the assessee’s Revenue’s vehement rival submissions. I find no reason to accept either party’s stand in entirety. This is for the precise reason that such clams of cost of construction as well as transfer expenditure on brokerage etc. in an instance of long term capital assets held for quite some time could not be altogether ruled out. Be that as it may, the assessee is found not to have been able to successfully pleaded and proved all the relevant facts qua both these claim before the learned lower authorities. It is thus deemed appropriate in the larger interest of justice that her impugned cost of construction deserves to be accepted to the extent of Rs.14,00,000/- and commission payment of Rs.50,000/- on estimation basis only. Necessary computation shall follow as per law. It is made clear that the assessee’s instant estimation on both these counts shall not be treated as a precedent.