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TMI Blog2017 (10) TMI 1150X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee appellant in respect of sale of property situated at Ghaziabad for a sum of Rs. 77, 25, 000/-, by denying the benefit of exemption under section 54 of the Act amounting to Rs. 48, 11, 161/-and also by not giving the full benefit of indexation on account of cost of improvement amounting to Rs. 25, 82, 368/-, as claimed by the appellant. 1.1 That the learned Commissioner of Income Tax (Appeals) has further, failed to appreciate the fact that the assessee - appellant had duly furnished the requisite documents/ evidences in order to establish that she is eligible to claim exemption under section 54 of the Act and as such, the enhancement so made by learned CIT (A), wherein, the exemption under section 54 of the Act, was den ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d should be deleted, as such." 3. Facts of the, in brief, as emanating from the order of the Assessing Officer, as observed by the ld. CIT(A) are reproduced hereinbelow: "As against the returned income of Rs. 3,95,858/- the income was assessed u/s 143(3) vide order dated 20.12.2011 at an income of Rs. 25,59,480/- after making additions of Rs. 21,63,617/-. The Assessee is in Appeal against the additions. Ground No. 1 to 7 All the Grounds of Appeal are taken up together. The Observations of the Assessing Officer in the Assessment Order are reproduced in Para 8, the Submissions of the Appellant are reproduced in Para 9 and the Decision alongwith the reasons appear under Para 10. Observations of the Assessing Officer The Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dance with I.T. Act, a questionnaire was issued on 16.09.2011 requiring the assessee to file following details: 1. Copy of latest Wealth Tax Returns. In case of discontinuation, please explain the reason of the same. 2. As per Wealth Tax Return for A. Y2000-01, the value of house at Ghaziabad is taken at Rs. 6,07,600/-. This includes indexed cost of purchase as well as construction on that date. Accordingly, you are requested to rework the cost of acquisition. 3. Also file statement of affairs of the assessee for A. Y.2008-09 and 2009- 10. 4. File evidence in support of construction carried out during the F.Y 2007- 08. 5. Also file calculation of deduction/ exemption claimed u/s 54F of the I. T.Act. The reply to the above queri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F.Y 2000-01 and that for A.Y 2009-10 at 582. Assessee has claimed cost of improvement amounting to Rs. 1,25,000/- during F. Y 2007-08 but after specific query no evidence has been filed except that assessee has withdrawn the amount of Rs. 1,00,000/- and Rs. 25,000/- on 23.04.2007 and 09.04.2007 respectively, withdrawal from the bank is not an evidence in the absence of bills of building material or labour cost etc. In view of this improvement cost shown at Rs. 1,25,000/- as claimed by the assessee is disallowed. Though, assessee has claimed the exemption from capital gain u/s 54F, however computation in this regard has been filed even after specific query raised vide questionnaire dated 16.09.2011. Assessee has only filed date-wise inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he long term capital gain in view of the decision of the ld. CIT(A) accordingly, against which the assessee is in appeal before me. 4. I have heard the rival submissions and have perused the relevant material on record. The house in Ghaziabad was sold on 29.05.2008 for Rs. 77,25,000/- is not under dispute. The house was purchased on13.08.1986 for Rs. 97,365/- and there was improvement in the year 1990 to the extent of Rs. 5,10,235/- making total cost at Rs. 6,07,600/- apart from the addition made on 11.4.2003 and 30.4.2007 for Rs. 1,60,000/- and Rs. 1,25,000/- but indexed cost of the same was worked out by the assessee as submitted before the authorities below at Rs. 25,82,368/- as per details below: Date Cost of Acquisition Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erm capital gain. 6. In fact, correct income has to be computed and correct income has to be given under the Income tax Act is the scheme of the Act and spirit of law and in this regard, the assessee having purchased a property in Kundli for which necessary papers were adduced before the ld. CIT(A) and also before us, which could not be controverted by the ld. DR and, therefore, in all fairness, and in the facts and circumstances of the case, the Assessing Officer is directed to allow the exemption u/s 54 of the Act as claimed before the ld. CIT(A) and accordingly, the addition so made is directed to be deleted. Grounds raised by the assessee are allowed. 7. In the result, the appeal of the assessee in ITA No. 2683/DEL/2017 is allowed. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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