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TMI Blog2016 (12) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... s for removal of encroachments have been paid in cash. In the absence of any proof of residence of said person on the said property, there is no merit in the claim of assessee and the same is dismissed. Coming to the last claim of assessee of ₹ 1 lakh, which is claimed to be incurred on construction of compound wall. The recipient has admitted to have carried on the said work and also admitted to have received the amount. However, he did not remember exact number of poles and only for this minor issue, the claim of assessee cannot be rejected. The Assessing Officer is directed to allow the claim of assessee to the extent of ₹ 1 lakh. Accordingly, the order of CIT(A) is modified in restricting the disallowance to ₹ 2 lakhs and allowing the claim of assessee to the extent of ₹ 1 lakh. - Decided partly in favour of assessee As in the case of wife of assessee part of claim of assessee has been accepted out of total expenditure of ₹ 12,90,000/- and only balance of ₹ 7,50,000/- has been disallowed for want of source of making the said payment and whether the expenditure was incurred by the assessee and was allowable in the hands of assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not appreciated the Fact of the case and submissions filed before him during the course of hearing and passed the Order, rejecting the submission and confirming the Assessing Officer's Order, which is improper and against justice. 4. The Order passed by the Commissioner of Income Tax (Appeals) II is passed in violation of rules of Natural Justice and this may please be held as Vitiated and be set aside. 4. The issue arising in the present appeal is with regard to allowability of development expenses incurred in respect of land sold by the assessee. 5. Briefly, in the facts of the case, the assessee had furnished the return of income declaring total income of ₹ 11,41,292/- and agricultural income of ₹ 88,200/-. The assessee was engaged in the profession of Advocate and had also declared income from capital gains, agricultural activity and other sources. As per AIR information received, the assessee had sold two immovable properties and had shown the capital gains for these transactions. The assessee claimed expenses on account of commission, development and expenses for removing encroachments. The assessee filed six vouchers in support of the same. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e addition to the extent of ₹ 2 lakhs and ₹ 1 lakh in the properties sold by him, whereas in the facts of Smt. Vijaya Subhash Kakade, development expenses agitated are to the extent of ₹ 7,50,000/-. The learned Authorized Representative for the assessee pointed out that the assessee had furnished the copies of receipts before the Assessing Officer, who had examined the said parties and the said parties had confirmed that the amounts were received by them, but some things were not remembered and hence, the amounts were disallowed in the hands of assessee. Attention was drawn to the documents filed before the Assessing Officer, which are placed in the Paper Book along with statements recorded of the said parties with translation at pages 6 to 40 of Paper Book. 9. The learned Departmental Representative for the Revenue placed reliance on the orders of authorities below. 10. On perusal of record and after hearing both the learned Authorized Representatives, the limited issue arising in the present appeal is against the disallowance of development expenses incurred by the assessee. The assessee had sold one land at Chahurana Budruk and had claimed development exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessee was regarding compound wall which work was claimed to be done by Shri Sanjay Jagnnath Kasar of Walki and the assessee claimed that sum of ₹ 1 lakh in this regard. The said person in his statement admitted to have carried out the said work and received the said payment, against which receipt was also issued. However, he was unable to give certain details vis- -vis proof of poles erected by him. The plea of assessee before the Tribunal was that since the development work and other activities were carried out many years ago and the persons being uneducated could not give complete details. Each case of the persons is dealt hereinafter. In respect of first person, Shri Namdeo Vishwanath Karale, to whom the assessee claimed to have paid ₹ 1 lakh, the said person has categorically stated that he had not done any work in 2002-03. He states that he had received an amount of ₹ 1,50,000/- with the work completed in 2009-10. First of all, there is difference in the amount claimed and received by the said person. The assessee s claim was of ₹ 1 lakh, whereas the said person claimed to have received ₹ 1,50,000/- for work completed in the later years. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,50,000/- in respect of the property situated at survey no.83/2B/2. In support of the same, she filed 3 vouchers amounting to ₹ 2,80,000/- as against claim of ₹ 2,50,000/-. And, in respect of another property situated at survey no.150/1 the expenses claimed @ ₹ 5,00,000/- however, appellant enclosed 2 vouchers for development expenses of ₹ 1,20,000/- and 3 vouchers for removing encroachments of ₹ 3,00,000/- i.e. totalling to ₹ 4,20,000/- as against claim of ₹ 5,00,000/-. (ii) During the asst. proceedings, Sh. Wagh Abhijit Eknath, Civil Engineer, who completed the work of compound wall of both properties and charged ₹ 1,50,000- and ₹ 70,000/- for the same, was confronted. However in his statement recorded on 17/10/2013, he was not even able to state the area of plot, number of poles binding wire used for the compound. (iii) The appellant claimed expenses on account of removing encroachment at ₹ 3,00,000/- and furnished 3 vouchers in the name of Sh.Chemate Sahebrao Ananda, Sh. Kulat Asaram Bhagwanta Sh. Chavan Laxman Ganpat. The appellant was requested to produce the above three persons and statement of Sh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the income declared by her was under the head Income from short term capital gains , wherein certain payments were made in cash. The total expenditure of assessee on account of purchase of new property, development expenses and investment for making the deduction under section 80C of the Act was to the extent of ₹ 16,05,650/-, out of which commission of ₹ 3,15,000/- was paid by cheque and the same was accepted. However, the balance sum of ₹ 12,90,000/- was paid in cash. The case of Revenue is that no corresponding withdrawals appeared in the bank statements of SBI and ADCC Bank during the course of assessment proceedings or thereafter, even before the Tribunal, the assessee has not met the said stand of the Revenue authorities. However, the Assessing Officer has been fair enough to partly accept the claim of assessee and disallowed the development expenses only to the extent of ₹ 7,50,000/-. In other words, part of claim of assessee has been accepted out of total expenditure of ₹ 12,90,000/- and only balance of ₹ 7,50,000/- has been disallowed for want of source of making the said payment and whether the expenditure was incurred by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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