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TMI Blog2024 (5) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... h the vendor is not genuine is totally incorrect and baseless. At the same time, the assessee is also unable to file further evidences to substantiate his case that he has paid a sum to the vendor for additional construction work in the property. Except the work order, the assessee could not furnish relevant bank statement to prove payment to the builder. Unless the assessee file necessary evidences to substantiate its claim, it is difficult for the AO to accept the claim of the assessee only on the basis of the work order. Therefore, we are of the considered opinion that the matter needs to go back to the file of the AO for further verification. Thus, we set aside the order of the AO and restore the issue back to the file of the AO with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment has been subsequently reopened u/s 147 of the Income Tax Act, 1961 for the reasons recorded as per which income chargeable to tax had been escaped assessment on account of under assessment of capital gain derived from transfer of property. Notice u/s 148 of the Act dated 27.3.2021 was issued and served on the assessee. There is no response from the assessee to the said notice. Subsequently, notices and show-cause notices were issued and served on the assessee from time to time, but the assessee neither appeared nor filed any details. Therefore, the Assessing Officer passed the draft assessment order u/s 144(1) r.w.s. 147 of the I.T. Act, dated 22.8.2022 and determined the total income at Rs. 32,09,200 towards computation of Long-Te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and also taking into account the remand report of the Assessing Officer directed the Assessing Officer to recompute the capital gain by adopting the full value of consideration in terms of provisions of section 50C of the Act and also allow indexed cost of acquisition as claimed by the assessee towards consideration paid for purchase of property. However, rejected the indexed cost of improvement as claimed by the assessee amounting to Rs. 35,28,035/- on the ground that the assessee could not substantiate its claim with necessary evidences. Thereafter, the Assessing Officer passed the final assessment order and determined the total income at Rs. 5,29,077/- towards Long-Term Capital Gain derived from transfer of property and modifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the DRP submitted that except copy of work order and agreement with the vendor, the assessee could not file any other evidences to justify payment of Rs. 19,50,000/- to the vendor for further construction. In absence of necessary evidences, the Assessing Officer and the DRP has rightly rejected the claim of the assessee and therefore, the order should be upheld. 9. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. The assessee claimed indexed cost of improvement of Rs. 35,28,035/- based on a document captioned as work order mentioning agreement of Rs. 19,50,000/- between the vendor and the assessee for certain house construction work . The Assessing Officer rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary evidences to substantiate its claim, it is difficult for the Assessing Officer to accept the claim of the assessee only on the basis of the work order. Therefore, we are of the considered opinion that the matter needs to go back to the file of the Assessing Officer for further verification. Thus, we set aside the order of the Assessing Officer and restore the issue back to the file of the Assessing Officer with a direction to reexamine the claim of indexed cost of improvement on the basis of work order and agreement entered into with the vendor for putting up further construction in the property. The Assessing Officer is directed to call for necessary record from the Bank, if so necessary to ascertain the true nature of the work ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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