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TMI Blog2015 (10) TMI 2119X X X X Extracts X X X X X X X X Extracts X X X X ..... basement at ₹ 1,58,25,000/- and after deducting indexed cost of property of ₹ 27,32,360/- worked out the capital gains at ₹ 1,30,92,640/- as against ₹ 19,09,720/- computed by the Assessing Officer. Accordingly, we find no justification to disturb the enhancement made by the ld. CIT(A) of ₹ 1,20,82,920/- to the total income of the assessee. Decided against the assessee. Addition on cash deposit in the bank account of the assessee - Held that:- We find that the assessee has submitted cash deposit and withdrawals statement which shows that the assessee has shown to have withdrawn the cash by issuing cheques, but it is not clear from the statements that the amounts deposited by the assessee on various dates was the same as withdrawn. The assessee also could not unveil the purpose for which the cash was withdrawn and then the same was deposited with the same bank. We, therefore, find no justification to interfere with the finding of the ld. CIT(A) that it is absurd to believe that somebody will withdraw cash from the bank, keep it idle with him and then deposit the same in the bank, particularly when no purpose for withdrawal was declared by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted at A-140, Defense Colony, New Delhi. The property was received by the assessee as gift and family settlement and as per the deed executed, the value of the property was determined at ₹ 1,97,050/- for the purpose of charging stamp duty. The total value of the property including stamp duty was worked out to ₹ 2,13,050/-. The assessee entered into an agreement for re-construction of this property on which enhancement was to be made by the builder. Therefore, the cost of acquisition in the hands of the assessee was the same as he received at the time of transfer in his name. The appellant received a consideration of ₹ 11,00,000/- for sale of basement of this property and while computing capital gain arising out of this property, the cost of acquisition was computed on the higher side and accordingly the assessee computed a loss on account of sale of property at ₹ 15,33,480/-. In the course of assessment proceedings, the cost of acquisition had been worked out by applying the value as on the date of transfer of property in the name of assessee and worked out to ₹ 90,280/- (2,13,050/4x480/281). As the appellant had not invested any funds on the cost of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anation. He, therefore, added the above unexplained deposit in the bank account to the total income of the assessee. The ld. CIT(A) also confirmed the above addition made by the Assessing Officer on account of cash deposited in the bank account. 5. The learned AR of the assessee contended that the value of the said property was determined on the basis of circle rate prevailing at that time after constructing and completing the property, which was done during the year 2003-04. The basement was flooded with rain water with the result, the value of basement was negligible. While assessing the value, the AO has accepted the value of basement at ₹ 11,00,000/-, which means that the selling cost of the basement. During the course of search, he submitted necessary documents of sale proceeds of property before the search team and offered the same for taxation, as while filing his return of income, he had not declared the capital gain on the sale proceeds of property as it was loss from the sale of basement. He also contended that neither the Assessing Officer nor the Appellate Authority has a technical knowhow except valuation by the valuer on which it may be determined that the va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hindu undivided family, by the mode referred to in sub-section (2) of section 64 at any time after the 31st day of December, 1969, the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee, as the case may be. Explanation.-In this sub-section the expression previous owner of the property in relation to any capital asset owned by an assessee means the last previous owner of the capital asset who acquired it by a mode of acquisition other than that referred to in clause (i) or clause (ii) or clause (iii) or clause (iv) of this subsection. 9. The learned CIT(A) issued notice u/s. 251(2) regarding enhancement in the sale consideration for the computation of capital gain is based on the sale of another floor of the same property, i.e., second floor. The assessee has placed no material on record to substantiate the sale proceeds of basement declared by it and consequential capital loss. The value of property declared by the assessee is based on circle rate. The assessee also failed to subst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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