NARESHKUMAR P. SOLANKI,MUMBAI vs. ITO WD 22(2)(3), NAVI MUMBAI

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ITA 1884/MUM/2013Status: DisposedITAT Mumbai15 June 2016AY 2009-103 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, stating that the assessee failed to substantiate the claim for deduction under Section 54 with necessary evidence before the lower authorities or the Tribunal. Therefore, the claim was not allowed.

What were the facts?

The assessee claimed a deduction of Rs. 10 lakhs under Section 54 for an advance paid towards a flat. The Assessing Officer rejected this claim as it was not made through a revised return. The CIT(A) also rejected the claim for lack of evidence, as the assessee failed to provide details of the advance payment.

What were the issues?

Whether the assessee is eligible for deduction under Section 54 when the claim for advance payment is not substantiated with evidence?

Which sections of the Income-tax Act were involved?

Section 54

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” Bench, Mumbai

Hearing: 15.6.2016Pronounced: 15.6.2016

O R D E R Per B.R. Baskaran, AM :-

The appeal filed by the assessee is directed against the order dated 24.12.2012 passed by learned CIT(A)-33, Mumbai and it relates to A.Y. 2009- 10.

2.

The assessee is aggrieved by the decision of learned CIT(A) in rejecting the claim of ` 10 lakhs made u/s. 54 of the Act.

3.

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 presence of the assessee.

4.

We have heard learned Departmental Representative and perused the record. The assessee declared income from brokerage in the return of income. The Assessing Officer received AIR information to the effect that the assessee has sold an immovable property for a sum of ` 40 lakhs. It was further noticed that stamp duty valuation of the property was ` 52,46,703/-. Accordingly, the 2 Nareshkumar P Solanki Assessing Officer, computed the capital gain at ` 42,92,605/- and assessed the same. Before the Assessing Officer, the assessee claimed deduction u/s. 54 of the Act in respect of an advance of ` 10 lakhs paid towards purchase of a flat. The Assessing Officer rejected the said claim by stating that additional claims can be made only through revised return only, as per the decision rendered by Hon'ble Supreme Court in the case of Goetz India Ltd. (284 ITR 363). In the appellate proceedings, learned CIT(A) asked the assessee to furnish the details relating to the payment of advance amount of ` 10 lakhs towards purchase of flat. Learned CIT(A) specifically asked for a copy of bank account of the assessee through which the above said amount of ` 10 lakhs was encashed. However, the assessee did not comply with the said direction and hence learned CIT(A) took the view that the assessee could not prove the claim made by him for deduction u/s. 54 of the Act with necessary evidences. Accordingly, he rejected the claim of the assessee. Aggrieved, the assessee has filed this appeal before us.

5.

We noticed that the assessee has not substantiated the claim of deduction of ` 10 lakhs u/s. 54 of the Act by adducing necessary evidences before learned CIT(A). Before us also no fresh material was filed to substantiate the said claim. Accordingly, we do not find any infirmity in the decision rendered by learned CIT(A).

6.

In the result, appeal filed by the assessee is dismissed. Order has been pronounced in the Open Court on 15.6.2016.

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