Shri Laxmanbhai Prabhudas Patel, Ahmedabad V. The Dy. CIT., Central Circle-1(2), Ahmedabad

ITA 1673/AHD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8423 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 20-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAHESH JIWADE
• Keywords: Capital asset
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO. 1673/AHD/2016 (ASSESSMENT YEAR: 2010-11) SHRI LAXMANBHAI PRABHUDAS PATEL 8, MARUTI HILLS BUNGALOWS, SATELLITE, AHMEDABAD 380015 APPELLANT VS. DCIT, CENTRAL CIRCLE 1(2), AHMEDABAD RESPONDENT PAN: AKXPP8563C /BY ASSESSEE : SHRI PARIN SHAH, A.R. /BY REVENUE : SHRI MAHESH JIWADE , SR. D.R. /DATE OF HEARING : 06.09.2017 /DATE OF PRONOUNCEMENT : 22.09.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010-11 ARISES AGAINST THE CIT(A)-11, AHMEDABADS ORDER DATED 07.03.2016, IN C ASE NO. CIT(A)-11/229/CC- 1(2)/2014-15, UPHOLDING ASSESSING OFFICERS ACTION DECLINING RENOVATION EXPENDITURE CLAIM OF RS.4,23,410/- IN ASSESSMENT OR DER DATED 24.03.2014, IN ITA NO. 1673/AHD/16 (SHRI LAXMANBHAI PRABHUDAS PAT EL VS. DCIT) A.Y. 2010-11 - 2 - PROCEEDINGS U/S. 143(3) R.W.S. 153A OF THE INCOME T AX ACT, 1961; IN SHORT THE ACT. HEARD BOTH SIDES. CASE FILE PERUSED. 2. WE NOW COME TO THE ABOVE SOLE SUBSTANTIVE ISSUE DISALLOWANCE OF RENOVATION EXPENSES OF RS.4,23,410/-. THE ASSESSEE HAD SOLD HIS OFFICE AT MARUTI TOWER IN THE RELEVANT PREVIOUS YEAR. HE THEREAFTER CLAIMED OFFICE RENOVATION EXPENDITURE DEDUCTION . HE INTER ALIA PLEADED BEFO RE THE ASSESSING OFFICER TO HAVE PURCHASED THE PROPERTY IN QUESTION ON 01.04.1992 FO LLOWED BY SALE THEREOF ON 04.02.2010 HAVING HOLDING PERIOD OF MORE THAN 17 YE ARS. THERE IS NO DISPUTE THAT THE ASSESSEE HIMSELF SUBMITTED AT THE FIRST INSTANC E TO HAVE NOT MAINTAINED THE RENOVATION DETAILS IN OLD RECORDS. THE ASSESSING O FFICER DECLINED ABOVE CLAIM FOR THIS PRECISE REASON ONLY QUOTING LACK OF DOCUMENTAR Y EVIDENCE. THE CIT(A) AFFIRMS ASSESSING OFFICERS ACTION IN THE ORDER UND ER CHALLENGE. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL SUBMISSIONS STRONGLY REITERATING THEIR RESPECTIVE STANDS. THERE IS NO D ISPUTE THAT THE ASSESSEE HAD PURCHASED HIS OFFICE / IMPUGNED CAPITAL ASSET FOR T HE YEAR 1992 AND SOLD THE SAME FOR RS.13LACS IN THE RELEVANT PREVIOUS YEAR. BOTH THE LOWER AUTHORITIES DENIED ITS OFFICE RENOVATION EXPENDITURE CLAMED FOR LACK OF DO CUMENTARY EVIDENCE. WE FIND NO REASON TO DISAGREE WITH BOTH THE LOWER AUTHORITI ES ACTION IN QUESTION IN PRINCIPLE AS IT WAS VERY INCUMBENT FOR THE ASSESSEE TO HAVE F ILED AT LEAST SOME DETAILS IF NOT ALL PERTAINING TO THE ISSUE OFFICE RENOVATION EXPENDITU RE. WE HOWEVER ARE FURTHER OF THE VIEW THAT THIS REASON CANNOT FORM THE SOLE BASI S FOR DENYING THE IMPUGNED CLAIM ALTOGETHER AS IT IS NOT SOMETHING VERY UNCOMMON THA T A CAPITAL ASSET HELD FOR ALMOST TWO DECADES REQUIRES AT LEAST SOME RENOVATION EXPEN DITURE IN THE NATURE OF NORMAL WEAR AND TEAR. WE THEREFORE FEEL APPROPRIATE IN LA RGER INTEREST OF JUSTICE THAT A LUMP SUM OFFICE RENOVATION EXPENDITURE OF RS.1LAC ONLY W OULD BE JUST AND PROPER IN ORDER TO SET THE INSTANT ISSUE AT REST. THE ASSESS ING OFFICER IS ACCORDINGLY DIRECTED TO FRAME CONSEQUENTIAL COMPUTATION ALLOWING ASSESSE ES IMPUGNED CLAIM TO THE EXTENT OF RS.1LAC ONLY. IT IS MADE CLEAR THAT OUR INSTANT DISCUSSION WOULD NOT ITA NO. 1673/AHD/16 (SHRI LAXMANBHAI PRABHUDAS PAT EL VS. DCIT) A.Y. 2010-11 - 3 - BE TREATED AS A PRECEDENT IN ASSESSEES OR ANY OTHE R CASE IN ANY PRECEDING OR SUCCEEDING ASSESSMENT YEAR. 4. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS . [PRONOUNCED IN THE OPEN COURT ON THIS THE 22 ND DAY OF SEPTEMBER, 2017.] SD/- SD/- ( MANISH BORAD ) (S. S. GODARA) ACCOUNTANT MEMBER JUDIC IAL MEMBER AHMEDABAD: DATED 22/09/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0