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TMI Blog2016 (9) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... sh flow other than the opening balance, the non banking of cash and production of records for the past 26 years from 1.4.1981 onwards. The learned Counsel has requested the Hon. Bench to have a pragmatic approach in respect of old records as normally people miss or misplace records after a reasonable period. In the circumstances and facts of the case, it is evident that the assessee has made substantial improvements to the land which is supported by year wise cash flow. The Assessing Officer has simply ignored the cash flow stating various other reasons. The Ld. CIT(A) has considered the cash flow and in order to compensate any probable defects and omissions has made an estimated disallowance of 40% which the learned DR during the cours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inherited by her through family partition prior to 01/04/1981 and claimed indexed cost of acquisition and improvements. The Assessing Officer has rejected the claim of the fair market value and indexed cost of improvements and recomputed the capital gain and levied tax on it. The assessee filed an appeal before the CIT(Appeals) who disposed off the appeal by fixing the fair market value at ₹ 11,000/- per cent. So far as indexed value of improvements are considered, referring to the judgment of the Madras High Court in Sarojini Ramaswami vs. Assistant Commissioner of Income Tax (2007) 291 ITR 308 (Mad.), the Commissioner of (Appeals) ordered that 60% of the amount claimed be allowed. The revenue has challenged this order before the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt as on 01/04/1981 vide his order in LAR 111/87 dated 22/01/1993. The Assessing Officer adopted the fair market value at ₹ 2,300/- after applying 5% increase for every year to the value fixed by the Addl. Sub Judge. 3. The learned CIT(Appeals) erred in deciding to grant 60% of the cost of improvement claimed by the assessee in the absence of any evidence in support of the same. The CIT(Appeals) ought to have noted that out of the nine sources of income claimed towards meeting the cost of improvements, evidence was not filed even for a single source. Even copies of bank accounts statements evidencing expenditure towards cost of improvement, running into several lakhs for each year, were not filed. Cash flow statement also was not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mages obtained during the survey does not show any improvements in the particular land. The learned DR during the course of argument also submitted that the 60% allowance given for improvements is correct and he oppose this allowance only because the amount involved is substantial. 7. The learned Counsel for the assessee submitted that the assessee belongs to a very large Hindu family of Trivandrum having different source of income and has received funds from different sources and advances and loans from relatives which are detailed in the year wise family cash flow filed with the department. Instead of verifying the cash flow the Assessing Officer was paying more emphasis and attention on the satellite survey conducted after the sale an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al contentions and perused the facts and records of the case. It is a fact that the assessee has filed a detailed cash flow showing different sources from which the money has been brought in. The assessee also has explained that during those days bank accounts were not so common and large families used to keep cash with themselves as most of the receipts were from agriculture and other allied sources. The fact that without improvements the assessee would not have received this amount is also pointed out. The learned DR has not raised any specific objection to the cash flow other than the opening balance, the non banking of cash and production of records for the past 26 years from 1.4.1981 onwards. The learned Counsel has requested the Hon. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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