ITAT Jaipur Judgments — January 2017

The Tribunal held that the construction was indeed made by the assessee, based on the contractor's agreement, payment details, and electricity bills. Therefore, the lower authorities erred in not allowing the benefit of the indexed cost of construction.

The tribunal upheld the reopening of assessment, finding no merit in the assessee's claim of not being provided with reasons. It also upheld the disallowance of the cost of improvement due to lack of evidence, confirming the addition.

The Tribunal held that since the additions on which the penalty was levied were deleted in the quantum proceedings, there was no basis for the penalty. Therefore, the deletion of penalty by the CIT(A) was confirmed.

The Tribunal held that while the AO had made sufficient inquiries regarding the GP rate, the inquiries on partner's capital additions and unsecured loans were insufficient. The CIT's revisionary order was upheld for these two issues.