Vinita Shailendra Lele, Pune V. Income-Tax Officer Ward3(4), Pune

ITA 287/PUN/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4226 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 27-02-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: N O N E
• Keywords: Cost of acquisition; Capital Gains
• Section: 142(1); 201; 143(2); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, J UDICIAL MEMBER . / ITA NO . 28 7 /PUN/20 20 / ASSESSMENT YEAR : 20 1 1 - 12 VINITA SHAILENDRA LELE, FLAT NO. 5, KETAN HSG. SOC., OFF SHANTIBAN SOCIETY, GURUGANESH NAGAR, PAUD ROAD, KOTHRUD, PUNE 411038 PAN : AALPL0852E ...... / APPELLANT / V/S. INCOME TAX OFFICER, WARD 3(4), PUNE / RESPONDENT ASSESSEE BY : N O N E REVENUE BY : S HRI SUDHENDU DAS / DATE OF HEARING : 04 - 10 - 2021 / DATE OF PRONOUNCEMENT : 06 - 10 - 2021 / ORDER PER S.S. VISWANETHRA RAVI, JM : THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 19 - 09 - 2019 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 3, PUNE [CIT(A)] FOR ASSESSMENT YEAR 201 1 - 12. 2. WE FIND NO REPRESENTATION ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION FILED SEEKING ADJOURNMENT. THUS, THE ASSESSEE CALLED ABSENT 2 ITA NO .287/PUN/2020, A.Y. 2011 - 12 AND SET EX - PARTE. THEREFORE, WE P ROCEED TO DISPOSE OF THE CASE BY HEARING THE LD. DR AND EXAMINING THE MATERIAL AVAILABLE ON RECORD. 3. GROUND NOS. 1 AND 2 RAISED BY THE ASSESSEE CHALLENGING THE ACTION OF CIT(A) IN CONFIRMING THE ASSESSMENT IN RESPECT OF DISALLOWANCE MADE ON ACCOUNT OF INDEXED COST OF IMPROVEMENT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. HEARD THE LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE BRIEF FACTS OF THE CASE EMANATING FROM THE RECORD ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND DERIVES INCOME FR OM OTHER SOURCES. THE ASSESSMENT WAS REOPENED ON THE BASIS OF INFORMATION RECEIVE D BY THE AO ON ACCOUNT OF SELLING OF IMMOVABLE PROPERTY TO AN EXTENT OF RS.37,05,000/ - . IN RESPONSE TO THE NOTICE U/S. 148 OF THE ACT, THE ASSESSEE FILED RETURN OF INCOME DECLARING A TOTAL INCOME OF RS.23,66,440/ - . NOTICES U/S. 142(1) AND 143(2) OF THE ACT WERE ISSUED. ACCORDING TO THE AO, THE ASSESSEE COMPUTED CAPITAL GAINS BY TAKING COST OF ACQUISITION AND IMPROVEMENT COST. THE AO ALLOWED COST OF ACQUISITION TO AN EXTENT OF RS.6,56,166/ - . FOR WANT OF EVIDENCES, THE AO DISALLOWED IMPROVEMENT COST TO AN EXTENT OF RS.7,05,491/ - . ON PERUSAL OF THE ASSESSMENT ORDER, WE NOTE THAT THE ASSESSEE CONTENDED HAVING IGNORANT OF TAX PROCEDURES COULD NOT FILE THE RETURN OF INCOME , BUT , TAX TO AN EXTENT OF RS.5,00,000/ - W AS PAID. IT IS ALSO CONTENDED THERE WAS NO INTENTION TO CHEAT THE INCOME TAX DEPARTMENT. THE AO DID NOT ACCEPT THE SUBMISSIONS OF TH E ASSESSEE AND BY REJECTING THE SAME, DETERMINED THE TOTAL INCOME OF THE ASSESSEE AT RS.30,71,931/ - INTER ALIA MAKING DISALLOWANCE ON ACCOUNT OF IMPROVEMENT COST TO AN EXTENT OF RS.7,05,491/ - . THE CIT(A) CONFIRMED THE ORDER OF AO , NOW THE ASSESSEE IS BEF ORE US. 3 ITA NO .287/PUN/2020, A.Y. 2011 - 12 5. WE NOTE THAT IT WAS CONTENDED BY THE ASSESSEE BEFORE THE CIT(A), THAT THE AO DID NOT CONSIDER THE CONFIRMATION CERTIFICATE ISSUED BY THE GOVT. C ONTRACTOR REGARDING THE CONSTRUCTION ON WHICH THE COST OF IMPROVEMENT WAS CLAIMED. THE AO DID NOT S UMMON THE CONTRACTOR TO RECORD ANY STATEMENTS IN ORDER TO VERIFY THE GENUINENESS OF THE CLAIM. THE AO DISALLOWED THE DEDUCTION ONLY ON PRESUMPTION AND SURMISES WITHOUT CONSIDERING THE CONFIRMATION CERTIFICATE ISSUED BY THE GOVT. CONTRACTOR. FURTHER, TO S HOW PROOF OF CONSTRUCTION IN SUPPORT OF THE CLAIM OF IMPROVEMENT COST, THE ASSESSEE ALSO ATTACHED BANK STATEMENT SHOWING WITHDRAWALS FOR MAKING PAYMENT TO CONTRACTOR. HAVING EXAMINED THE SUBMISSIONS OF ASSESSEE, THE CIT(A) HELD THAT NO DATE WAS MENTIONED IN THE CONFIRMATION LETTER ISSUED BY THE GOVT. CONTRACTOR AND REJECTED THE SAME. FURTHER, HE HELD NO EVIDENCES WERE FILED AND IN SUPPORT OF CLAIM AND THEREBY CONFIRMED THE ORDER OF AO. 6. THE LD. DR, SHRI SUDHENDU DAS SUBMITS THAT THE AO HAS GIVEN AMPL E TIME TO FILE EVIDENCES IN RESPECT OF CLAIM BUT THE ASSESSEE FAILED TO FURNISH THE SAME. BEFORE THE CIT(A) ALSO THE ASSESSEE FILED NIL DATED CONFIRMATION LETTER FROM THE CONTRACTOR AND NO EVIDENCES IN RESPECT OF SUPPORTING THE CONFIRMATION LETTER ISSUED BY THE GOVT. CONTRACTOR. BEFORE THIS TRIBUNAL ALSO NO SUCH EVIDENCES BY WAY OF PAPER BOOK FILED AND THE ORDER OF CIT(A) IS TO BE CONFIRMED. 7. BEFORE US, AS RIGHTLY POINTED BY THE LD. DR NO EVIDENCES SHOWING PROOF OF CONSTRUCTION AND WHATSOEVER FURNISHED. HAVING GONE THROUGH THE RECORD, WE NOTE THAT NO EVIDENCE FILED BEFORE THE AO IN ASSESSMENT PROCEEDINGS BUT HOWEVER A CONTENTION WAS MADE BEFORE THE CIT(A) IN SUPPORT OF CLAIM OF IMPROVEM ENT COST. HAVING NO EVIDENCES ON RECORD IN SUPPORT OF SUCH CLAIM BOTH THE AUTHORITIES BELOW REJECTED THE SUBMISSIONS 4 ITA NO .287/PUN/2020, A.Y. 2011 - 12 OF ASSESSEE IN RESPECT OF DISALLOWANCE ON IMPROVEMENT COST. BEFORE THIS TRIBUNAL ALSO NO EVIDENCES WERE FILED IN SUPPORT OF SUCH CLAIM. HAVING NO ALTERNATIVE IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND BY SUBMISSIONS OF LD. DR, WE DEEM IT PROPER TO CONFIRM THE ORDER OF CIT(A). THUS, GROUND NOS. 1 AND 2 RAISED BY THE ASSESSEE FAILS AND ARE DISMISSED. 8. GROUND NO. 3 RAISED BY THE ASS ESSEE CHALLENGING THE ACTION OF CIT(A) IN CONFIRMING THE INTEREST U/S. 234 OF THE ACT. 9. WE NOTE THAT IT IS CONSEQUENTIAL PROCEDURE SINCE, WE OPINED THE ORDER OF CIT(A) IS CORRECT, HENCE, THE SAME IS DISMISSED. 10. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH OCTOBER, 2021. SD/ - SD/ - ( R.S. SYAL ) ( S.S. VISWANETHRA RAVI ) VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 06 TH OCTOBER, 202 1 . RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A) - 3, PUNE 4. THE PR. CIT - 2, P UNE 5. , , , / DR, ITAT, SMC BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE