HARINI SAMPATH, CHENNAI V. ITO, INTNL TAXN, WARD-2(2), CHENNAI

ITA 337/CHNY/2022

AI Insights

The case involves Smt. Harini Sampath, a non-resident, who sold a property in Chennai during the assessment year 2015-16 and reported substantial capital gains. The Income Tax Officer disallowed the cost of construction claimed by the assessee due to lack of evidence and adjusted the indexation from 2006 instead of 1981 as claimed by the assessee. The Commissioner of Income Tax (Appeals) upheld the indexation adjustment but dismissed the claim for construction costs. The assessee appealed to the Income Tax Appellate Tribunal, which dismissed the appeal due to the absence of evidence supporting the construction cost claim.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134856 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-05-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 11-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मंजुनाथ. जी, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 337/CHNY/2022 िनधाᭅरण वषᭅ/Assessment Year: 2015-16 Smt. Harini Sampath, No.7, Anna Avenue, Adyar, Chennai – 600 020. PAN: BSZPS 7280Q vs. The Income Tax Officer, International Taxation - Ward 2(2), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : None ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri AR.V. Sreenivasan, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 02.05.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 02.05.2023 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals)-16, Chennai in ITA No.97/CIT(A)-16/2017-18 dated 11.03.2022. The assessment was framed by the Income Tax Officer, International Taxation 2(2), Chennai for the assessment year 2015-16 u/s.143 (3) of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 28.12.2017. 2 ITA No. 337/Chny/2022 2. Brief facts are that the assessee, a non-resident residing in USA, during the previous year relevant to assessment year 2015- 16, the appellant sold a property located at No.1, 1 st Main Road, Gandhinagar, Adyar, Chennai – 600 020 which was jointly owned by the appellant and her sister, Smt. Ranjani Venkata Raghavan. The appellant filed her return of income for assessment year 2015-16 on 29.08.2016 admitting a total income of Rs.12,01,75,520/- consisting mainly of capital gains arising from the above sale of property. The assessee’s case was selected for scrutiny assessment under CASS and the AO disallowed cost of construction of Rs.48,13,918/- in the absence of evidences. The assessee before AO also pleaded that the property was acquired previously on 09.01.1965 vide document No.289/1965 and therefore cost of acquisition for the purpose of indexation should be taken from 1981 because the assessee has acquired the same by way of settlement deed dated 08.02.2006 on account of a family settlement but the AO allowed indexation from 08.02.2006 and made addition of long term capital gain at Rs.12,76,53,624/-. Aggrieved assessee preferred appeal before CIT(A). 3. The CIT(A) also dismissed the first ground of cost of construction claimed by assessee at Rs.48,13,918/- as no evidence 3 ITA No. 337/Chny/2022 was filed before him but allowed the indexation from 01.04.1981 and directed the AO accordingly. Aggrieved against confirmation of addition, assessee came in appeal before Tribunal. 4. Despite issuance of notice none, is present from assessee’s side. Even before us, there is no evidence as regards to cost of construction claimed by assessee of Rs.48,13,918/-. In the absence of any evidence, we have no alternative except to confirm the addition. 5. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 2 nd May, 2023 at Chennai. Sd/- Sd/- (जी. मंजुनाथ) (G. MANJUNATHA) लेखा सद᭭य/ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 2 nd May, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकरआयुᲦ /CIT 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF.