R. Amrith Krishna, CHENNAI V. ACIT, CHENNAI

ITA 3027/CHNY/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5125 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 27-10-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N GOPI KRISHNA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , !' .$%$&, ( ') BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ./ ITA NO.3027/CHNY/2016 & +& / ASSESSMENT YEAR : 2009-10 SHRI R. AMRITH KRISHNA, NO.30, DESIKA ROAD, MYLAPORE, CHENNAI - 600 004. PAN : AGYPA 1305 J V. THE ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE 1, CHENNAI - 600 034. (-./ APPELLANT) (/0-./ RESPONDENT) -. 1 2 / APPELLANT BY : NONE /0-. 1 2 / RESPONDENT BY : SHRI N. GOPIKRISHNA, JCIT 3 1 4( / DATE OF HEARING : 21.06.2018 56+ 1 4( / DATE OF PRONOUNCEMENT : 26.06.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -2, CHENNA I, DATED 20.09.2016 AND PERTAINS TO ASSESSMENT YEAR 2009-10. 2. THE APPEAL OF THE ASSESSEE WAS FIXED FOR HEARING ON 21.06.2018 AND THE NOTICE OF HEARING WAS SERVED ON THE ASSESSEE 2 I.T.A. NO.3027/CHNY/16 BY RPAD. THE REGISTRY HAS PLACED POSTAL ACKNOWLEDG EMENT AS PROOF OF SERVICE OF NOTICE ON THE ASSESSEE. INSPIT E OF RECEIPT OF NOTICE THROUGH RPAD, THE ASSESSEE CHOSE NOT TO APPE AR BEFORE THIS TRIBUNAL WHEN THE APPEAL WAS TAKEN UP FOR HEARING. THEREFORE, WE HEARD LD. DEPARTMENTAL REPRESENTATIVE AND PROCEEDED TO DISPOSE THE APPEAL ON MERIT. 3. SHRI N. GOPIKRISHNA, THE LD. DEPARTMENTAL REPRES ENTATIVE, SUBMITTED THAT THE ASSESSEE CLAIMED COST OF IMPROVE MENT TO THE EXTENT OF 25 LAKHS. ACCORDING TO THE LD. D.R., THE ASSESSEE HAS ALSO CLAIMED THE PAYMENT OF 25 LAKHS TOWARDS INTEREST TO M/S RAMCONS. THE ASSESSEE ALSO APPEARS TO HAVE OBTAINE D A LOAN OF 1,17,27,069/- FROM THE BANK FOR THE PURPOSE OF ACQU ISITION OF SAID PROPERTY. SINCE THE LOAN WAS OBTAINED FROM BANK FO R ACQUISITION OF VERY SAME PROPERTY, ACCORDING TO THE LD. D.R., THE SO-CALLED CLAIM OF IMPROVEMENT TO THE EXTENT OF 25 LAKHS IS NOT CONNECTED WITH THAT PROPERTY. THE PAYMENT WAS, IN FACT, SAID TO BE MAD E TO THE ASSESSEES FATHER. THE EXPENDITURE WAS SAID TO BE INCURRED BY THE ASSESSEE AFTER THE SALE OF PROPERTY. IN THE ABSENC E OF ANY MATERIAL EVIDENCE TO SUPPORT THE CLAIM OF COST OF IMPROVEMEN T, ACCORDING TO THE LD. D.R., THE ASSESSING OFFICER DISALLOWED THE SAME AND THE 3 I.T.A. NO.3027/CHNY/16 CIT(APPEALS) HAS ALSO RIGHTLY CONFIRMED THE DISALLO WANCE MADE BY THE ASSESSING OFFICER. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ARGUMENT OF THE LD. D.R. THAT THE CLAIM OF 25 LAKHS SAID TO BE INCURRED FOR IMPROVEMENT OF THE PROPERTY WAS IN RESPECT OF THE P ROPERTY ACQUIRED AFTER AVAILING LOAN FROM BANK. THE PROPERTY WAS AL SO SOLD BEFORE INCURRING THE EXPENDITURE. THEREFORE, THE CLAIM OF EXPENDITURE CREATES A DOUBT. IN THE ABSENCE OF ANY DETAILS OF IMPROVEMENT SAID TO BE MADE BY THE ASSESSEE TO THE PROPERTY, THIS TR IBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT(APPEALS) HAS RIGHTL Y CONFIRMED THE ORDER OF THE ASSESSING OFFICER. MOREOVER, THE ASSE SSEE IS ALSO HAVING ALTERNATIVE CLAIM OF PAYMENT TOWARDS INTERES T. THEREFORE, IT IS FOR THE ASSESSEE TO PROVE WHETHER THE SUM OF 25 LAKHS PAID TO M/S RAMCONS WAS TOWARDS INTEREST OR TOWARDS COST OF IMPROVEMENT. IN THE ABSENCE OF SPECIFIC DETAILS AND RELATED MATE RIAL BEFORE THIS TRIBUNAL, WE DO NOT FIND ANY REASON TO INTERFERE WI TH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRM ED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. 4 I.T.A. NO.3027/CHNY/16 ORDER PRONOUNCED ON 26 TH JUNE, 2018 AT CHENNAI. SD/- SD/- ( !' .$%$& ) ( . . . ) (ABRAHAM P. GEORGE) (N.R.S. GANESAN) ( / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 8 /DATED, THE 26 TH JUNE, 2018. KRI. 1 /49: ;:+4 /COPY TO: 1. -. /APPELLANT 2. /0-. /RESPONDENT 3. 3 <4 () /CIT(A)-VI, CHENNAI 4. 3 <4 /CIT IV, CHENNAI 5. := /4 /DR 6. >& ? /GF.