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Income Tax Appellate Tribunal, “A” Bench, Mumbai
Before: Shri B.R. Baskaran (AM)& Shri Amit Shukla (JM)
O R D E R Per B.R. Baskaran (AM) :-
The appeal filed by the assessee is directed against the order dated 17- 01-2013 passed by Ld CIT(A) on the following issues for AY 2009-10. (a) Disallowance of cost of improvement incurred on the land sold. (b) Disallowance of 20% of business expenses.
None appeared on behalf of the assessee, even though the notice of hearing was sent by registered post on more than one occasion. Hence we proceed to dispose of the appeal ex-parte, without the presence of the assessee.
We heard the Ld D.R and perused the record. The facts relating to the first issue are that the assessee had sold a land located near Mahabaleshwar and claimed the same as agricultural land. Accordingly he claimed the capital gains as exempt. The AO noticed that the land has been converted into non- agricultural land and accordingly assessed the capital gain. Before the Ld
2 Shri Kisan Baburao Jadhav CIT(A), the assessee submitted that a portion of land alone was converted into non-agricultural land and the remaining portion of land was used for agricultural purpose. In support of the same, the assessee furnished relevant details and also copies of returns of income of earlier years, wherein the assessee had declared agricultural income. The Ld CIT(A) was convinced with the same and accordingly directed the AO to re-compute the capital gain by excluding the income relatable to the portion of agricultural land. The assessee had claimed cost of improvement over the land, but the Ld CIT(A) did not allow the said claim on the reasoning that the assessee has failed to prove the same.
The assessee had earned rental income of Rs.3,05,000/- by letting out a hotel against which the assessee claimed expenditure to the tune of Rs.15,53,000/-. Since the expenses were not verifiable, the AO disallowed 20% thereof and the Ld CIT(A) also confirmed the same.
The assessee is contesting the decision rendered by Ld CIT(A) on cost of improvement and disallowance of expenses. On perusal of the order passed by the tax authorities, we notice that they have disallowed both the claims for want of proof only. Before us also, the assessee has not furnished any proof to support his claim. Hence we do not find any reason to interfere with the order passed by Ld CIT(A) on both the issues.