9911796707
TMI Blog2025 (1) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... that the AO in his remand report stated that an amount for the FY 2009-10 was paid for Stamp Duty, MCD Map fee and MCD Development charges and this amount was allowable as these expenditures were paid to the Government department. This further reinforces the fact that the building that was sold was constructed on which expenses were definitely incurred. We hereby direct the AO to allow 50% of the indexation claimed. We also clarify that there will be no further allowance of indexation of Rs. 3,94,860/- as allowed by the CIT(A) as the same in our estimation is also included in the 50% of the indexation amounting to Rs. 24,42,262/- allowed by us. The balance disallowance of Rs. 24,42,262/- claimed towards indexation by the assessee by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. AO in making disallowance of deduction of Rs. 9,640/- claimed by assessee u/s 80C, more so when no incriminating material has been found as a result of search and impugned disallowance has been made by recording incorrect facts and findings and without providing the entire adverse material on record and without observing the principles of natural justice. 4. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not deleting the entire addition made by Ld. AO amounting to Rs. 71,86,571/-, more so when no incriminating material has been found as a result of search and impugned addition has been made by recording incorrect facts and findings and without providing the entire adverse materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual and filed her return of income at Rs. 23,74,730/-. The assessment was completed under section 153C r.w.s 144 of the Act at a total income of Rs. 1,45,44,630/-. A search and seizure action was carried out on the Rama and Param Group and other related cases on 28.02.2014 at various residential and business premises. Certain incriminating documents relating to the assessee were found during the said search which pertain to the impugned assessment year. Based on these incriminating documents, assessment u/s 153C r.w.s. 144 of the Income Tax Act, 1961 (the Act) was completed at an income of Rs. 1,45,44,630/- making four additions, which reads as under:- Particulars Amount in INR Addition u/s 80C and 80D 9,640 Addition u/s 69A 71,86,571 Addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1,80,968/-) the same was disallowed by the AO on the ground that no documentary evidence was filed in support of the claim of expenses amounting to Rs. 31,98,704/- incurred on construction/ renovation expenses in respect of the property on which indexation amounting to Rs. 48,84,524/- was claimed. The relevant discussion by the AO in para no.10 on page-18 of the assessment order is as under:- 10. It is worth to mention that the assessee had sold the immovable properties for total amount of Rs. 71,50,000/- and had not filed her original return of income and had not paid the taxes to the revenue. Now in pursuance to notice us 153C of the Income Tax, the assessee has furnished the return of income on 22.11.2016 declaring the capital gain of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e could not be properly verified. Therefore, on the facts of the case out of total expenses claimed amounting to 31,98,704/- only the expenses of 3,94,860/- are allowed to be claimed for indexed expenses for computing LTCG by appellant. Rest of the expense-claim is disallowed being frivolous and unverifiable on account of bogus bills submitted by the appellant. The AO shall re-compute the long term capital gains accordingly, having acceded to the factum of sale transaction of properties by the appellant. 7.2. During the hearing before us, the Ld. AR submitted that the copy of the invoices in respect of expenses amounting to Rs. 28,03,844/- (Rs.31,98,704 Rs. 3,94,860/-) placed before the AO (page no.6 to 86 of the paper book). The Ld. AR fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is also a fact that the AO in his remand report stated that an amount of Rs. 3,94,860/- for the FY 2009-10 was paid for Stamp Duty, MCD Map fee and MCD Development charges and this amount was allowable as these expenditures were paid to the Government department. This further reinforces the fact that the building that was sold was constructed on which expenses were definitely incurred. Therefore, considering the facts in entirety, we hereby direct the AO to allow 50% of the indexation claimed i.e. Rs. 24,42,262/-. We also clarify that there will be no further allowance of indexation of Rs. 3,94,860/- as allowed by the ld. CIT(A) as the same in our estimation is also included in the 50% of the indexation amounting to Rs. 24,42,262/- allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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