9911796707
TMI Blog2023 (12) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... have been identified in the name of several parties. Other similar entries in the name of other occupants are also discernible. We take note of the plea on behalf of the assessee that an amount of Rs. 15 lakh paid to Shri Rajender Kumar has been accepted by the CIT(A) to have been incurred cost of removal of encumbrances. Thus, the cost of removal of encumbrances per se is not in doubt and rather has been accepted on first principles. The quantum of payment to various parties is put under cloud by the Revenue on account of lack of corroboration. Appraisal of bank statement gives an unflinching impression that several parties as named on behalf of the assessee have been paid costs against their respective names. The payments have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and reverse the disallowance carried out by the Assessing Officer on this score. Assessee appeal allowed. - Shri Chandra Mohan Garg, Judicial Member And Shri Pradip Kumar Kedia, Accountant Member For the Assessee : Shri C.S. Anand, Adv. For the Department : Shri S.L. Anuragi, Sr.DR ORDER PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-XV, Delhi [ CIT(A) in short] dated 16.08.2019 arising from the assessment order dated 26.03.2015 passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2012-13. 2. As per the grounds of appeal, the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he replies filed by the assessee, the CIT(A) granted relief to the extent of Rs. 15 lakh on account of one of the claimants namely, Shri Rajender Kumar who admitted receipt of compensation towards eviction to the extent of Rs. 15 lakh as against Rs. 18,75,000/- claimed by the assessee. The remaining amount was sustained by the CIT(A) alleging non availability of concrete evidence. 5. Aggrieved by the partial relief, the assessee preferred appeal before the Tribunal. 6. We have carefully considered the rival submissions and perused the material available on record. 7. The assessee is aggrieved by the denial of expenses incurred towards removal of encumbrances amounting to Rs. 1,77,28,177/- and indexation thereon for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roped in Mr. Tara Chand and few others and thereafter started negotiation with those persons. Eventually a sum of Rs. 2,02,43,749/- in aggregate were paid by the assessee to various persons claiming rights out of his bank account maintained with the Syndicate Bank Fatehpur Beri, Delhi during the period October 2010 to March 2011 for removal of the encumbrances on the land. The assessee had duly reflected and included such cost towards removal of encumbrances in its balance-sheet in the preceding Financial Year 2010-11. No challenge was made by revenue to such transaction in the preceding year. During the Financial Year 2011-12 relevant to Assessment Year 2012-13 in question, the assessee sold certain portion of the land, i.e., 284 Marle ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es an unflinching impression that several parties as named on behalf of the assessee have been paid costs against their respective names. The payments have been made on various dates close to each other to several parties. Thus, the facts when read in conjunction, there appears to be ring of truth in the version of the assessee towards incurring of cost of encumbrances. While holding so, one needs to bear in mind the ground realities prevalent in the indian-socio-ecostructure. One cannot deny that a large population of India stays unauthorizely in the land parcel belonging to others and move out of such land parcels only on payment of some sort of compensation. The legal remedy for removal of the encroachments, at times, is quite slow and i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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