The ITO-2(1), Ujjain V. Shri Pravin Narang, Ujjain

ITA 395/IND/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5881 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 06-11-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 04-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER I.T.A.NO.398/IND/2013 A.Y. : 2008-09 SHRI PRAVEEN KUMAR NARANG ITO, WARD 2(1), UJJAIN VS. UJJAIN APPELLANT RESPONDENT PAN NO. ABJPN9535D I.T.A.NO.395/IND/2013 A.Y. : 2008-09 ITO, WARD 2(1), SHRI PRAVEEN KUMAR NARANG UJJAIN VS UJJAIN APPELLANT RESPONDENT ASSESSEE B Y : SHRI MILIND GOKHALE, CA RESPONDENT BY : SHRI R. R.MEENA, DR DATE OF HEARING : 06. 1 1 .2015. DATE OF PRONOUNCEMENT : 05 .01 .201 6 SHRI PRAVEEN KUMAR NARANG, UJJAIN VS. ITO, WD.2(1), UJJAIN. I.T.A.NO. 398 & 395/IND/2013 A.Y. 2008-09 2 2 O R D E R PER D.T.GARASIA, J.M. THESE CROSS APPEALS BY THE ASSESSEE AND DEPARTMENT ARE DIRECTED AGAINST THE ORDER OF CIT(A), UJJAIN, DATED 26.03.2013 FOR THE ASSESSMENT YEAR 2008-09. . 2. THE SHORT FACTS OF THE CASE ARE AS UNDER. 3. THE ASSESSEE IS AN INDIVIDUAL AND RETURN DECLARING AN INCOME OF RS. 4,93,180/- WAS FILED ON 1.12.2010. TH E ASSESSEE HAS SOLD THE PROPERTY AT RS. 41 LACS DURING THE YEA R UNDER CONSIDERATION. NOTICE U/S 142(1) WAS ISSUED AND THE ASSESSEE HAS FILED THE RETURN. THE ASSESSEE CLAIMED INDEXATI ON COST OF IMPROVEMENT OF RS. 31,42,673/- WHICH WAS NOT ALLOWE D BY THE ASSESSING OFFICER. THE AO CALCULATED THE LONG TERM CAPITAL GAIN (LTCG) ON RS. 51,11,763/- AND MADE ADDITION. T HE MATTER WENT BEFORE THE CIT(A) AND THE CIT(A) HAS AL LOWED 50% OF COST OF INDEXATION AND DISALLOWED 50%. THEREFORE , THE ASSESSEE IS IN APPEAL CONFIRMING RS. 15,71,336/- AN D DEPARTMENT IS IN APPEAL FOR GIVING THE COST OF IMPR OVEMENT @ 50%. SHRI PRAVEEN KUMAR NARANG, UJJAIN VS. ITO, WD.2(1), UJJAIN. I.T.A.NO. 398 & 395/IND/2013 A.Y. 2008-09 3 3 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE ASSESSEE HAS TO PROVE THAT HE HAS CARRIED OUT THE IMPROVEMENT ON LAND. AS PER THE ASSESSMENT ORDE R, THE ASSESSEE HAS PRODUCED THE BILLS OF IMPROVEMENT AND AFFIDAVITS OF PERSONS ON 7.12.2010 AND ASSESSMENT WAS COMPLETE D ON 31 ST MARCH,2010. THEREFORE, THE LD. CIT(A) HAS CALLED F OR THE REMAND REPORT. THE ASSESSEE HAS FILED THE BILLS AND THE LD. CIT(A) HAS VERIFIED THE BILLS AND HE HAS ALSO GONE THROUGH THE AFFIDAVIT FILED BY ONE SHRI UDAY KARWADE. THE ASSES SEES BILLS AND AFFIDAVITS WERE VERIFIED BY THE LD. CIT(A) AND HE HAS ALLOWED 50% OF THE COST OF IMPROVEMENT AND THE LD. CIT(A) IS JUSTIFIED IN HIS ACTION AND OUR INTERFERENCE IS NOT REQUIRED. SHRI PRAVEEN KUMAR NARANG, UJJAIN VS. ITO, WD.2(1), UJJAIN. I.T.A.NO. 398 & 395/IND/2013 A.Y. 2008-09 4 4 5. IN THE RESULT, THE ASSESSEES APPEAL AS WELL AS DEPARTMENTS APPEALS BOTH ARE DISMISSED. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 5 TH JANUARY, 2016. SD/- (B.C.MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 5 TH JANUARY, 2016. CPU* 1614