Sh. Ajay Gupta, Chandigarh V. ACIT, C-4(1), Chandigarh

ITA 1332/CHANDI/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1104 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 28-11-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 23-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SUDERSHAN
• Assessee Lawyers: PARISKHSIT AGGARWAL
• Keywords: Set aside; Capital Gains

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A CHANDIGARH , !' # $ % &' , '( BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 1332/CHD/2018 / ASSESSMENT YEAR : 2014-15 SHRI AJAY GUPTA, SCO 3227, SECTOR 28-D, CHANDIGARH ACIT, CIRCLE 4(1), PANCHKULA ./PAN NO: AAWPG6907C / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI PARISKHSIT AGGARWAL, CA ' ! / REVENUE BY : SHRI ARVIND SUDERSHAN, SR. DR # $ % /DATE OF HEARING : 28.11.2019 &'() % / DATE OF PRONOUNCEMENT : 28.11.2019 ')/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 06.09.2018 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-2, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A)]. ]. 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- 1. THAT ON THE FACTS, CIRCUMSTANCES AND LEGAL POSITION OF THE CASE, THE WORTHY CIT(A) IN APPEAL NO. 10153/2/16-17 DATED 06.09.2018 ITA NO. 1332/CHD/2018- SHRI AJAY GUPTA, CHANDIGARH 2 HAS ERRED IN PASSING THAT ORDER IN CONTRAVENTION OF THE PROVISIONS OF S. 250(6) OF THE INCOME TAX ACT, 1961. 2. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CASE, THE WORTHY CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. AO IN MAKING ADDITION OF RS. 55,56,000/- ON ACCOUNT OF ALLEGED UNAVAILABILITY OF VOUCHERS RELATED TO EXPENSES FOR COST OF IMPROVEMENT EVEN WHEN THE EXPENSES WERE INCURRED 15-30 YEARS BACK. 3. THAT THE APPELLANT CRAVES LEAVE FOR ANY ADDITION, DELETION OR AMENDMENT IN THE GROUNDS OF APPEAL ON OR BEFORE THE DISPOSAL OF THE SAME. 3. AT THE OUTSET, LD. AR OF THE ASSESSEE HAS SUBMIT TED THAT THE SOLE ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL IS REGA RDING THE DENIAL OF COST OF IMPROVEMENT ON THE PLOT ALONGWITH INDEXATION BY THE ASSESSING OFFICER WHILE COMPUTING CAPITAL GAINS ON THE SALE O F THE PROPERTY. THE LD. AR OF THE ASSESSEE HAS INVITED OUR ATTENTION TO THE COPY OF THE SALE DEED, WHEREIN, THE FACTUM OF CONSTRUCTION OF 8000 S QUARE FEET HAS BEEN MENTIONED, WHEREUPON, THE ASSESSEE HAS ALSO PAID S TAMP DUTY TO THE COLLECTOR AT THE TIME OF REGISTRATION OF THE SALE DEED. THE LD. ASSESSING OFFICER HAS DENIED THE ENTIRE CLA IM OF COST OF IMPROVEMENT SINCE THE ASSESSEE COULD NOT PROVIDE TH E NECESSARY BILLS AND VOUCHERS. THE LD. AR OF THE ASSESSEE HAS SUBMIT TED THAT SINCE THE CONSTRUCTION WAS MADE MORE THAN 15 YEARS BACK, HENC E, THE ASSESSEE COULD NOT LOCATE THE BILLS AND VOUCHERS REGARDING T HE EXPENDITURE INCURRED FOR CONSTRUCTION. HOWEVER, THE FACT OF CON STRUCTION COULD HAVE ITA NO. 1332/CHD/2018- SHRI AJAY GUPTA, CHANDIGARH 3 WELL BEEN VERIFIED BY THE ASSESSING OFFICER BY VISI TING THE SITE OR THROUGH OTHER MEANS. THAT EVEN HAD THERE NOT BEEN A NY CONSTRUCTION, THERE WAS NO QUESTION OF MENTIONING THE SAME IN THE SALE DEED AS NEITHER THE PURCHASER NOR THE SELLER COULD HAVE GAINED ANYT HING BY SO MENTIONING IN THE SALE DEED, RATHER, THEY HAVE BEEN BURDENED WITH ADDITIONAL STAMP DUTY. THE LD. COUNSEL HAS FURTHER SUBMITTED THAT THE ASSESSEE NOW HAS LOCATED SOME OF THE BILLS AND VOU CHERS INCURRED FOR EXPENDITURE ON CONSTRUCTION AND THAT NOW HE IS ABLE TO PRODUCE THE SAME BEFORE THE ASSESSING OFFICER. THE LD. AR, THEREFORE , HAS SUBMITTED THAT IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTO RED TO THE FILE OF THE ASSESSING OFFICER FOR PROPER EXAMINATION OF THE FAC TS. 4. THOUGH, THE LD. DR HAS RELIED UPON THE FINDINGS OF THE LOWER AUTHORITIES BUT HAS BEEN FAIR ENOUGH TO ADMIT THAT THE MATTER REQUIRES FACTUAL EXAMINATION AT THE HANDS OF THE ASSESSING O FFICER. 5. IN VIEW OF THIS, THE IMPUGNED ORDER OF THE CIT(A ) IS HEREBY SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO CONSIDER THE FACTS OF THE CASE IN TH E LIGHT OF THE OBSERVATIONS MADE ABOVE AND ALSO IN THE LIGHT OF TH E EVIDENCES AS MAY BE FURNISHED BY THE ASSESSEE AND THEREAFTER TO PASS A SPEAKING ORDER. THE ASSESSEE IS ALSO DIRECTED TO PROMPTLY APPEAR BEFORE THE ASSESSING OFFICER, AS AND WHEN CALLED FOR, AND NOT TO CONTRIB UTE IN ANY MANNER IN DELAYING THE PROCEEDINGS. ITA NO. 1332/CHD/2018- SHRI AJAY GUPTA, CHANDIGARH 4 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING ON 28.11.2019. SD/- SD/- ( # $ % &' / ANNAPURNA GUPTA) '( / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 28.11.2019 .. '+ ,-.- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , %2 , 34516 / DR, ITAT, CHANDIGARH 6. 157$ / GUARD FILE '+ # / BY ORDER, 8' / ASSISTANT REGISTRAR