2024 (4) TMI 130 - AT - Income Tax

Disallowance as per order u/s 144C - default in filling of form 35A - Expenditure pertaining to stamp duty and registration charges in respect of society transfer fees paid by the assessee out of the aforesaid capital gain amount disallowed - as per AO assessee has not furnished the supporting document regarding making payment of aforesaid expenditure claimed by the assessee - assessee objection filed before DRP rejected on the ground that original form no. 35A was non signed by the authorized representative and the fresh form no. 35A filed by the assessee cannot be considered because it was filed beyond time HELD THAT - Assessee has made correction in the form 35A which cannot be treated as filed beyond time limit therefore we don t find any justification in the finding of the DRP for treating the form 35A as not filed. On merit we find that the assessing officer has not considered that assessee has actually incurred the expenses pertaining to stamp duty and registration charges and society transfer charges as per the terms and conditions of the agreement and evidence of payment as reflected in the copy of bank statement therefore we direct the assessing officer to allow the claim of the assessee after verification of the copy of agreement and copy of bank statement filed by the assessee. Accordingly the appeal of the assess is allowed.

Summary

Issues involved:
The issues involved in this case include the Dispute Resolution Panel's refusal to entertain objections filed by the Appellant in Form No. 35A, the treatment of Form No. 35A as not filed or filed beyond time, the dismissal of objections on technical grounds without addressing the merits, and the disallowance of certain expenses claimed by the assessee under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961.

Dispute Resolution Panel's Decision on Form No. 35A:
The Appellant raised objections against the Dispute Resolution Panel's decision to not entertain objections filed in Form No. 35A, citing that the form filed by the Appellant was in accordance with the law. The Panel's treatment of the form filed by the Appellant as not filed or filed beyond time was challenged, with the Appellant arguing that the subsequent form filed was a correction of any defects in the original filing. The Appellate Tribunal found that the original form was filed within the time limit, and the correction made by the Appellant was justified. The Panel's decision was deemed unjustified, and the Appellant's appeal on this issue was allowed.

Disallowance of Expenses Claimed by the Assessee:
The assessing officer disallowed certain expenses claimed by the assessee, including stamp duty charges, registration fees, and society transfer fees, on the grounds of lack of supporting documents. The Appellant contended that the expenses were incurred as per the terms of the sale agreement, supported by evidence in the form of a bank statement. The Appellate Tribunal noted that the assessee had indeed paid the expenses as per the agreement and provided evidence of the same. The Tribunal directed the assessing officer to allow the claimed expenses after verifying the supporting documents submitted by the assessee. Consequently, the appeal of the assessee on this issue was allowed.

Conclusion:
In conclusion, the Appellate Tribunal ruled in favor of the assessee, allowing the appeal on both the issue of the Dispute Resolution Panel's decision on Form No. 35A and the disallowance of expenses claimed by the assessee. The Tribunal found that the original form was filed within the time limit, and the expenses claimed were supported by evidence, leading to a favorable decision for the assessee in this case.