Revenue appeal partially allowed on A.Y. 2014-15 assessment order. Disallowances reinstated, deductions reversed. Cross objection dismissed.

The Revenue's appeal was partly allowed in a case concerning the assessment order for A.Y. 2014-15. The disallowances of commission expenses and indexed cost of improvement were reinstated. The decisions regarding deduction u/s 54F and exemption u/s 54EC were reversed in favor of the Revenue. The cross objection filed by the assessee was dismissed due to being time-barred and lacking justifiable reasons.

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Issues:
The appeal involves issues related to the assessment order for A.Y. 2014-15, including disallowance of commission expenses, indexed cost of improvement, deduction u/s 54F, and deduction u/s 54EC.

Commission Expenses Disallowance:
The Revenue appealed against the deletion of the disallowance of commission expenses of Rs. 17,00,000 claimed by the assessee while computing the cost of sale of land. The AO disallowed it for lack of details and confirmation of payments. The ld. CIT(A) accepted the assessee's submission that the expenses were share of stamp duty expenses borne by the assessee without examining evidence. The Tribunal found the ld. CIT(A)'s decision lacking justification and evidence, reversing it and restoring the addition.

Indexed Cost of Improvement Disallowance:
The Revenue challenged the allowance of indexed cost of improvement of Rs. 35,40,600 by the ld. CIT(A) while computing capital gains. The AO disallowed it due to lack of proof of payment and source. The Tribunal held that the onus was on the assessee to prove the genuineness of the expenditure, which the assessee failed to do. Consequently, the Tribunal reversed the ld. CIT(A)'s decision and allowed the Revenue's appeal on this issue.

Deduction u/s 54F:
The Tribunal found the ld. CIT(A)'s decision to allow the benefit of exemption u/s 54F devoid of merit and reversed it. As a result, the Revenue's appeal on this ground was allowed.

Deduction u/s 54EC:
Referring to a decision by the Hon'ble Madras High Court, the Tribunal determined that the issue of deduction u/s 54EC was covered in favor of the assessee. The Tribunal dismissed the Revenue's appeal on this ground, citing the legislative intent and the time limit for investment specified in the relevant provisions.

Cross Objection Dismissal:
The assessee filed a cross objection, which was found to be time-barred by 22 months. Despite seeking condonation of delay, the Tribunal concluded that the reasons provided by the assessee for the delay were not justifiable, cogent, or supported by documentary evidence. Consequently, the cross objection filed by the assessee was dismissed.

Conclusion:
In conclusion, the appeal of the Revenue was partly allowed, with the disallowances of commission expenses and indexed cost of improvement being reinstated. The ld. CIT(A)'s decisions regarding deduction u/s 54F and exemption u/s 54EC were reversed in favor of the Revenue. Additionally, the cross objection filed by the assessee was dismissed.

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