Surinder Kaur Sethi, New Delhi V. ACIT Circle-50(1), New Delhi

ITA 7246/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9742 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Appeal Filed On: 01-09-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 28; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.7246/DEL/2019 Assessment Year 2016-17 Surinder Kaur Sethi, 3-B/15, FF, Old Rajinder Nagar, New Delhi. ACIT, Circle-50(1), New Delhi. TAN/PAN: AJMPS3602H (Appellant) (Respondent) Appellant by: Shri KVSR Krishna, CA Respondent by: Shri Abhishek Kumar, Sr.DR Date of hearing: 01 06 2022 Date of pronouncement: 07 06 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap peal h as b een fil ed b y th e Assessee ag ain st th e o rd er o f th e Co mmiss io n er o f In co me Tax (Ap peals)-XVII, New Delh i [‘CIT( A)’ in sh o rt] d a te d 1 2 .0 7 .2 01 9 arisi n g fro m th e assess men t o rd er d ated 2 5 .1 2 .20 18 p assed by th e Assessin g Officer (AO) u n d er Sect io n 1 4 3(3 ) of th e In co me Tax Act, 1 9 6 1 (th e Act) co n cern in g AY 20 1 6-1 7 . 2 . Brie fly s ta ted , th e assesse e so ld o n e i mmo v ab le p ro p erty fo r Rs.9 ,2 5 ,0 0 ,0 0 0 /- du rin g th e y ear u nd er co n sid eration wh ich is sta ted to b e acq u ired /co n stru ct ed p rio r to 0 1 .0 4 .1981 . Fo r the p u rpo ses o f calcu l atio n o f Lo n g Term Cap i ta l Gain , t h e assessee ad o p ted th e co st o f acq u isi tio n o f lan d an d b u ild ing as p er v alu atio n d e ter min ed b y th e reg is ter ed v alu er. Th e ass essee in t er I.T.A. No.7246/Del/2019 2 a lia also c lai med co st o f i mp ro v eme n t at Rs .1 ,8 0 ,0 0 0 /- an d Rs.2 lac a t trib u tab le t o F.Y. 1 9 82 and 1 98 3 resp ectiv ely wh ile co mp u tin g th e Lo n g Term Cap it al Ga in s. Th e in d ex ed co st o f su ch co st o f i mp ro v emen t was wo rk ed o u t to Rs.3 7 ,6 5 ,1 2 3 /- fo r d ed u ctio n . Th e Assessin g Offi cer o n in q u iry fro m the assesse e in th e co u rse o f th e asse ss men t fo u n d th at th e a fo re said c la i m to ward s co st o f i mp ro v emen t is n o t s u p po rted b y an y do cu men tary ev id en ce. Th e Assessin g Offic er ac co rd in g ly ob serv ed th at th e co st o f i mp ro v eme n t cl ai med wi th a v iew to red u ce tax li ab i li ti es. Th e Assessin g Offi cer th u s d en ied th e co st o f i mp rov emen t so cla i med fo r th e p u rp o ses o f d etermin atio n o f t ax ab le L o n g Term Cap it al Gain s. 3 . Ag g riev ed , th e ass essee p re ferred ap p eal b e fo re th e CI T(A). Th e CIT(A) h o wever also co u ld n o t see an y meri t in th e cla i m o f th e assesse e an d th u s d eclin ed to in terfere with the ac tio n o f th e Assessin g Offic er. Th e relev an t o p erativ e p arag rap h o f th e o rd er o f th e CIT(A) is re p ro du ced h ereu nd er: “ 5 . 1 D u r i n g t h e y e a r u n d e r c o n s i d e r a t i o n a p p e l l a n t h a s s o l d i m m o v a b l e p r o p e r t y f o r R s . 9 , 2 5 , 0 0 , 0 0 0 / - . F o r t h e pu r p o s e o f c a l c u l a t i o n o f l o n g t e r m c a p i t a l g a i n a p p e l l a n t h a s t a k e n t h e v a l u e o f l a n d a n d b u i l d i n g a s p e r v a l u a t i o n b y a r e g i s t e re d v a l u e r . A p a r t f r o m t h i s t h e a p p e l l a n t h a s t a k e n t h e v a l u e o f c o n st r u c t i o n o f p r o p e r t y a t R s . 3 , 4 8 , 3 0 0 / - a n d t a k e n c o s t o f i m p r o ve m e n t a t R s . 1 , 8 0 , 0 0 0 / - a n d R s . 2 , 0 0 , 0 0 0 / - d u r i n g y e a r 1 9 8 2 a n d 1 9 8 3 r e s p e c t i v e l y w h i l e c o m p u t i n g l o n g t e r m c a p i t a l g a i ns . T h e A O h a s a s k e d t h e a p p e l l a n t t o f u r n i s h d o c u m e n t a r y e v i d e n c e i n s u p p o r t o f h e r c l a i m b u t s h e h a s n o t f u r n i s h e d a n y e v i d e n c e i n s u p p o r t o f c o s t o f i m p r o v e m e n t . T h u s , A O h a s c o m p u t e d t h e l o n g t e r m c a p i t a l g a i n a f t e r r e d u c i n g t h e i n d e x e d c o s t o f i m p r o v e m e n t / c o n st r u c t i o n a t R s . I.T.A. No.7246/Del/2019 3 3 7 , 6 5 , 1 2 3 / - a n d l o n g t e r m c a p i t a l g a i n w o r k e d o u t at R s . 1 , 5 2 , 6 9 , 6 9 2 / - w h i c h r e s u l t e d a d d i t i o n o f R s . 3 9 , 2 9 ,2 8 7 / - . 5 . 2 D u r i n g t h e c o u r s e o f a p p e l l a t e p r o c e e d i n g s a p pe l l a n t h a s s u b m i t t e d t h a t s h e h a s c l a i m e d d e d u c t i o n o f R s . 1 , 80 , 0 0 0 / - i n 1 9 8 2 a n d R s . 2 , 0 0 , 0 0 0 / - i n 1 9 8 3 b e i n g i m p r o v e m e n t / c o n s t ru c t i o n c a r r i e d o u t i n t h e b u i l d i n g . T h e e x p e n d i t u r e h e l p e d t o i n c re a s e d t h e a g e o f b u i l d i n g . T h e A O d i d n o t a l l o w t h e e x p e n d i t u r e i n ca l c u l a t i o n o f L T C G f o r w a n t o f d o c u m e n t a r y p r o o f . I n s u p p o r t o f he r c o n t e n t i o n a p p e l l a n t h a s f i l e d a n a f f i d a v i t t h a t i m p r o v e m e n t wa s c a r r i e d o u t b y h i s b r o t h e r w i t h h i s o w n r e s o u r c e s i n t h e y e a r 1 9 8 2 a n d 1 9 8 3 . H e r b r o t h e r i s a n N R I a n d c o n s t r u c t i o n w a s l o o k e d a f t e r b y h e r . T h e e x t e n s i v e i m p r o v e m e n t o f t h e s a i d p r o p e r t y w a s c a r ri e d o u t b y h e r b r o t h e r d u r i n g p e r i o d 1 9 8 2 / 1 9 8 3 . S u c h i m p r o v e m e n t wa s u n d e r t a k e n t o m a i n t a i n t h e p r o p e r t y a f t e r t h e p e r i o d o f m e r e l y 2 8 y e a r s a t a c o s t o f R s . 1 , 8 0 , 0 0 0 / - i n 1 9 8 1 a n d R s . 2 , 0 0 , 0 0 0 / - in 1 9 8 2 i s q u i t e r e a s o n a b l e . 5 . 3 I h a v e c o n s i d e r e d t h e f a c t s o f t h e c a s e , f i n d in g o f t h e A O a n d s u b m i s s i o n s o f t h e a p p e l l a n t . T h e a p p e l l a n t h a s c l a i m e d c o s t o f i m p r o v e m e n t a t R s . 1 , 8 0 , 0 0 0 / - a n d R s . 2 , 0 0 , 0 0 0 / - i n t h e y e a r 1 9 8 2 a n d 1 9 8 3 r e s p e c t i v e l y a n d i n d e x e d c o s t o f i m p r o v e m en t f o r b o t h t h e y e a r a t R s . 3 9 , 2 9 , 2 8 8 / - . T h e A O h a s a s k e d t h e a p p e ll a n t t o f u r n i s h d o c u m e n t a r y e v i d e n c e i n s u p p o r t o f c o s t o f i m p r o v e me n t b u t a p p e l l a n t f a i l e d t o f u r n i s h a n y d o c u m e n t a r y e v i d e n ce . D u r i n g t h e c o u r s e o f a p p e l l a t e p r o c e e d i n g s t h e a p p e l l a n t h a s fi l e d t h e a f f i d a v i t s t a t i n g t h a t p r o p e r t y w h i c h w a s c o n s t r u c t e d i n 1 9 5 0 a n d i m p r o v e m e n t h a s t a k e n p l a c e 3 5 y e a r s b a c k , t h e c o s t o f i m p r o v e m e n t i s q u i t e r e a s o n a b l e a n d s h o u l d b e a c c e p t e d . T h e c o nt e n t i o n o f t h e a p p e l l a n t i s n o t a c c e p t a b l e a s s h e h a s n o t b r o u g h t a n y d o c u m e n t a r y e v i d e n c e o n r e c o r d i n s u p p o r t o f c o s t o f c o n s t r u c t io n a n d s o u r c e o f c o s t o f i m p r o v e m e n t . S h e h a s t r i e d t o j u s t i f y t h e co s t o f i m p r o v e m e n t o n t h e b a s i s o f t h e a f f i d a v i t c l a i m i n g t h a t c o s t o f i m p r o v e m e n t w a s i n c u r r e d b y h e r b r o t h e r a n d n o d o c u m e n t a r y e v i d e n c e w i t h h e r . I n I.T.A. No.7246/Del/2019 4 t h e a b s e n c e o f a n y e v i d e n c e o n l y o n t h e b a s i s o f t he a f f i d a v i t c o n t e n t i o n o f t h e a p p e l l a n t c o u l d n o t b e a c c e p t e d an d A O i s j u s t i f i e d i n r e c o m p u t i n g l o n g t e r m c a p i t a l g a i n a f t e r e x c l u d in g t h e c o s t o f i m p r o v e m e n t a n d a d d i t i o n m a d e b y t h e A O a t R s . 3 9 , 29 , 2 8 7 / - o n a c c o u n t o f L T C G i s h e r e b y c o n f i r m e d . ” 4. Fu rth er a gg rie ve d, th e as se ss ee pr ef err ed a ppe al b ef or e t he Tri bu na l. 5. W e h av e he ar d th e riv al s ub mi ss io ns . The as se ssee h as t r ied to su pp ort th e cl ai m t ow ard s c os t of i mp rov e men t of R s. 1, 8 0,0 00 /- an d Rs .2, 00 ,0 00 /- pu r por te dl y i ncu rr ed in F .Y . 1 98 2 and 19 83 res pe ct ive l y b y w a y of af f id avi t. On i nq uir y, f ro m t he b e nch , it wa s ho we ver a d mit te d tha t ot he r th an af f ida vi t, t he a sses se e do es n ot po sse ss an y o th er dir ec t o r i ndi re ct s up por ti ng ev id en ce . Th e o nl y cas e of th e a ss es se e i s t ha t t he co st o f i mp ro ve me nt ha s tak en pl ac e 35 ye a r s b ac k an d t hat t oo in cu rr ed b y his b ro th er, a nd th e ref or e, th e ass es se e i s not i n a p os iti on t o c or ro bor at e t he clai m. T he as ses se e mai nl y r e lie s up on the d oc tri ne of pr ep on der an ce . 6. On pe ru sal of t he a f f idavi t, it is no t k no wn as to w hat k i nd of i mpro ve me nt h as b een ca rr ie d o ut b y t he br ot her of t he as ses se e. No par ti cu lar s wh at soe ver i s a va ila bl e o n rec or d i n thi s re gar d. W h il e i t is t he c lai m of th e ass es see tha t t he i mpro ve me nt has t ake n pl ac e i mme dia te l y af t er t he c ut of d at e f or a do pti on of fair mar ket va lue of cos t of ac qui si ti on as o n 01 .0 4. 19 81 , i t is e qu all y p la usi b le th at suc h cos t, if a n y, ha s b een i nc urr ed p ri or to t he c ut of d at e a nd t hu s alr ea d y t ak en i nt o acc ou nt f or t he pu r po ses of f air ma rk et v alu e of cos t of ac qu is it io n of th e pr ope rt y i n q ues ti on . 7. The af f id av it i s va gue a nd no n- des cr i pt. I t is not cle ar f ro m af f idav it a s to wh a t is t he ba sis f o r a f f irmin g th e c on ten ts o n oa th . Nee dl es s t o sa y, a n af f ida vit sh ou ld cle ar l y s pe ll ou t h ow mu ch i s I.T.A. No.7246/Del/2019 5 the sta te me nt to t he d ep on en ts k no wle dg e a nd h ow much i s a sta te me nt of hi s b el ief ba se d o n i nf or m ati on an d s ou rc e t h ere of . T he gro un ds of beli ef mu st b e st ate d w i th s uf f icie nt p art i cul ar it y to ena bl e the c ou rt /a d mi nis tr at in g a ut ho r it y t o ju dge w he th er it w ou ld be s af e t o ac t o n d e po nen ts ‘b el ief ’. In the in st ant ca se , t h e af f idav it f iled b y th e as se ss ee be ar s on l y t he ver if ica ti on tha t it has b een sw orn on oa th an d con te nt s of th e af f idav it is c or re ct b ut w it ho ut giv in g s our ce of k no wle dg e or i nf or mat io n. Suc h b ald ver if ica ti on ma kes th e i mp u gne d af f ida vi t mea ni ng les s a nd va lu eles s. The na tu re and so urc e of kn ow led ge i s n ot f ou nd t o be d is cl os ed w it h suf f icie nt par ti cu lar it y r en de rin g i t a pi ece of pap er ca rr yi ng n o pr ob at iv e val ue a nd t hu s lia ble t o be r eje ct ed . The af f ida vi t f il ed b y t he ass es se e a pp ear s to be on l y a s elf s er vin g do cu me nt an d no we ig ht can be a tta ch ed to suc h s ta nda lo ne pa per in t he a bsen ce of an y o th er mat er ia l or co rr ob ora ti on ab out th e i mpro ve me nt s c arr ied ou t t o su pp ort a ss ert io ns ma de in th is r ega r d. Th e bur de n of p roof lie s on the as se ss ee to p rod uc e e vi de nce wh ich is ri gh tl y con si de re d un sat isf a cto r y a nd de vo id of a n y f actu al ba si s b y the l ow er aut ho ri ti es. W e t hu s se e no rea so n t o int erf er e w ith th e o rde r of th e CI T( A). 6. In th e res ul t, t he ap pea l of th e as se ss ee is d ismi ss ed . Order pronounced in the open Court on 07/06/2022. Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /06/2022 Prabhat