Dasrath Laxman Shirawale, New Panvel V. Income-tax Officer, Ward - 2, Panvel

ITA 1566/PUN/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8535 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 03-10-2019
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Depreciation; Additional evidence; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA No.1566/PUN/2019 निर्धारण वषा / Assessment Year : 2009-10 Shri Dashrath Laxman Shiravale PL5/B, Bldg No.4, Room No.1, Sector 14, Khanda Colony, New Panvel, Maharashtra – 410206 PAN : ALVPS0572M Vs. ITO, Ward 2, Panvel Appellant Respondent आदेश / ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(A)-2, Thane dated 16-05-2019 in relation to the assessment year 2009-10. 2. Succinctly, the facts of the case are that the assessee filed his return declaring total income of Rs.1,49,050. The Assessing Officer observed that the assessee had sold a shop at Nirman Co- op. Housing Society Ltd., New Panvel for a consideration of Rs.35 lakhs, but no capital gain was offered in the return. On being Assessee by None Revenue by Shri S.P. Walimbe Date of hearing 15-11-2021 Date of pronouncement 15-11-2021 ITA No.1566/PUN/2019 Dashrath Laxman Shiravale 2 called to explain the reasons, the assessee submitted that he claimed depreciation on commercial premises purchased by him in the year 2005 which was sold for sum of Rs.35 lakhs in the year under consideration with opening written down value at Rs.16,33,299. He, therefore, agreed to offer Short term capital gain. The AO computed the differential amount of Rs.18,66,701 (Rs.35,00,000 – Rs.16,33,299) and made addition for the same as Short term capital gain. During the course of appellate proceedings, the assessee submitted that he was not properly represented before the AO and no regular books of account were maintained. The assessee claimed that certain amounts were incurred on repairs and renovation of premises which were to be considered as cost of improvements in computing short term capital gains. In support of such a contention, the assessee also furnished copies of loan statements, internal report for disbursement of loan, confirmation from buyer that shop was sold along with furniture and fixtures etc. The ld. CIT(A) refused to entertain the additional evidence and confirmed the addition. 3. I have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of the assessee despite service of notice. It is seen that the assessee ITA No.1566/PUN/2019 Dashrath Laxman Shiravale 3 admittedly sold a commercial shop for Rs.35 lakhs with opening written down value at Rs.16,33,299. The assessee submitted that he had incurred certain cost of improvements on the said property which ought to have been considered for the purpose of computing short term capital gain. It is also the case of assessee that no regular books of account were maintained and the figures of cost of improvement etc. were not reflected anywhere. He, however, furnished certain additional evidence to substantiate his claim. In my considered opinion, it would be in the interest of justice, if the impugned order is set aside and the matter is restored to the file of the AO. I order accordingly and direct a fresh assessment to be made on this score after affording a reasonable opportunity of hearing to the assessee. 4. In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 15 th November, 2021. Sd/- (R.S.SYAL) VICE PRESIDENT प ु णे Pune; ददिधांक Dated : 15 th November, 2021 GCVSR ITA No.1566/PUN/2019 Dashrath Laxman Shiravale 4 आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: 1. अपीऱधर्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The CIT(A)-2, Thane 4. 5. The Pr. CIT-2, Thane विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे / DR „SMC‟, ITAT, Pune 6. गार्ड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 15-11-2021 Sr.PS 2. Draft placed before author 15-11-2021 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *