GIRISH PARAKH,CHENNAI V. ACIT, NCC-10(1), CHENNAI

ITA 1221/CHNY/2025

AI Insights

The case revolves around the disallowance of expenses claimed by the assessee, Girish Parakh, on the transfer towards the sale of property for the assessment year 2017-18. Initially, the Assessing Officer disallowed these expenses due to lack of documentary evidence. The first appellate authority partially allowed the appeal by deleting the indexed cost of improvement but confirmed the disallowance of expenses on transfer due to insufficient evidence. The Tribunal, however, found that the assessee had indeed submitted the necessary evidence and that the first appellate authority's decision to confirm the disallowance without allowing the withdrawal of the ground was not justified.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668839 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR
• Assessee Lawyers: D.ANAND
• Keywords: Set aside; Capital Gains; Rectification of order
• Section: 143(3); 154

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.1221/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2017-18 Girish Parakh, Old 9, New 11, 1st Floor, Vivekananda Street, Chetpet, Chennai 600 031. [PAN:AACPP7199P] Vs. The Assistant Commissioner of Income Tax, Non Corporate Circle 10(1), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri D. Anand, Advocate ŮȑथŎ की ओर से/Respondent by : Shri Vijay Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 18.06.2025 घोषणा की तारीख /Date of Pronouncement : 25.06.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 13.02.2025 Addl./JCIT(A)-6, Mumbai for the assessment year 2017-18. 2. The assessee raised 3 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the disallowance of expenses on transfer towards sale of property in the facts and circumstances of the case. I.T.A. No.1221/Chny/25 2 3. Brief facts relating to the case are that the assessee is an individual and filed return of income for AY 2017-18 admitting total income of ₹.99,89,277/-. The case was selected for scrutiny to verify deduction/ exemption from capital gains. On perusal of the computation of capital gains, the Assessing Officer noted that the assessee claimed expenses on transfer towards sale of property at ₹.2,20,000/- and cost of improvement at ₹.1,15,013/-. Since the assessee has not produced any details, the Assessing Officer disallowed the expenses of ₹.3,35,013/- (₹.2,20,000 + ₹.1,15,013/-) and added to the total income of the assessee and completed the assessment under section 143(3) of the Income Tax Act, 1961 [“Act” in short] dated 05.09.2019. On appeal, by considering the documentary evidence furnished by the assessee in respect of improvement made, the ld. CIT(A) deleted the indexed cost of improvement disallowed at ₹.1,15,013/-. Since the assessee could not furnish the documentary evidence for expenses on transfer towards sale of property, the ld. CIT(A) confirmed the disallowance and partly allowed the appeal of the assessee. 4. The ld. AR Shri Anand, Advocate drew our attention to rectification order passed by the Assessing Officer under section 154 of the Act dated 26.11.2019 along with computation sheet, placed at page 3 to 8 of the I.T.A. No.1221/Chny/25 3 paper book and submits that relief was granted for expenses claimed on transfer towards sale of property and confirming an impugned addition on an issue for which relief was already granted to the assessee is bad in law and prayed to set aside the impugned appellate order dated 13.02.2025. 5. The ld. DR Shri Vijay Kumar, JCIT fairly conceded the submissions of the ld. AR. 6. Heard both the parties and perused the material available on record. The assessee claimed expenses towards transfer of sale of property at ₹.2,20,000/- and cost of improvement at ₹.1,15,013/-. We note that the Assessing Officer disallowed the expenses since the assessee could not furnish documentary evidences. Against the assessment order, the assessee preferred further appeal before the ld. CIT(A) on 14.10.2019 as stated in the first paragraph of the impugned order. Thereafter, before the Assessing Officer, the assessee filed rectification petition stating that evidence of brokerage and confirmation from broker who had facilitated the sale of immovable property was already submitted online on 23.08.2019, much before passing assessment order and prayed for granting relief after cross verification. We note that, after verification of the same, by passing rectification order under section 154 of the Act dated I.T.A. No.1221/Chny/25 4 26.11.2019, the Assessing Officer granted relief for claiming expenses on transfer of sale of property. Further, we note that during the course of appellate proceedings, by filing detailed written submissions, the assessee prayed for withdrawal of the ground towards disallowance of ₹.2,20,000/- which is reproduced at page 4 of the impugned order. Without permitting the assessee to withdraw the above ground raised in the grounds of appeal, the first appellate order adjudicated the ground and dismissed for want of evidence is not justified and thus, the confirmation of addition on the above issue is liable to be quashed and ordered accordingly. Considering the documentary evidences by the first appellate authority and allowing cost of improvement in the impugned order hold good. Thus, the ground raised by the assessee is allowed. 7. In the result, the appeal filed by the assessee is allowed. Order pronounced on 25th June, 2025 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 25.06.2025 Vm/- I.T.A. No.1221/Chny/25 5 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "