ITAT Jodhpur Judgments — January 2025

The Tribunal dismissed all three grounds of the revenue's appeal. It upheld the CIT(A)'s decision to delete the cash deposit addition, noting that the AO provided no evidence the cash was used elsewhere and the assessee's source was verifiable. The Tribunal also affirmed the treatment of property sales as capital gain, concluding that the intention at the time of purchase and consistent accounting as fixed assets prevailed over the business description in the tax audit report. Lastly, it upheld the partial allowance of Section 24(b) deduction for rental income from constructed properties, accepting supporting documents and prior appellate proceedings.

The Tribunal noted that the valuation of unquoted equity shares is left to the discretion of the assessee, and the AO cannot adopt a method of his own choice. The Tribunal found that the assessee had obtained a valuation report from an accountant and a merchant banker, and the fair market value determined was higher than the issue price. Therefore, the addition made by the AO and sustained by the CIT(A) was not justified.