2015 (6) TMI 456

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....of property to the DVO and thereafter make an assessment as provided under section 50C(2) and 50C(3) of the Income-tax Act, 1961. Grounds No.3, 4 & 5 relate to the issue whether the CIT (A) is justified in deleting the addition of Rs. 14,00,000/- made by the Assessing Officer on account of unexplained cash credits. Ground No.6 relates to the deletion of addition of Rs. 2,57,500/- made by the Assessing Officer on account of disbelieving the cost of improvement incurred on properties which was sold. 3. We shall take up the issues ground-wise as under. GROUNDS NO.1 & 2 4. The assessee had sold a property. The consideration shown in the sale deed was Rs. 15,00,000/-. While computing the capital gains, the assessee has taken the sale considera....

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....DVO should be adopted as provided u/s 50C(1), 50C(2) & 50C(3). After considering all the facts and circumstances of the case, I am of the view that the AO has not followed the complete provisions of section 50C(2) and accordingly, the AO is directed to refer the valuation to the DVO and make the assessment as provided u/s 50C(1), 50C(2) & 50C(3) and as such the alternate appeal of the assessee is allowed." 6. The revenue, being aggrieved, is in appeal before us. 7. Ld. DR relied on the assessment order. On the other hand, the AR reiterated the submissions made before the Income-tax Authorities and placed reliance on the findings of the CIT (A). 8. We have heard the rival submissions and perused the material on record. On perusal of mate....

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....owk New Delhi. The assessee was asked to explain the source of deposit in his saving bank account. The assessee vide his letter dated 30th October 2012 submitted that the Cash deposited in account represent the advance received for and on behalf of Mrs. Anjana Gupta for prospective sale of property. The assessee was further asked to produce confirmation of the same from prospective buyer vide order sheet entry dated 17.12.2012. However the assessee has failed to produce any confirmation. Hence in the absence of any confirmation the sum of Rs. 14,00,000/- is added to the income of the assessee as unexplained cash credits u/s 68 of Income Tax Act 1961." 10. On further appeal, the addition made by the Assessing Officer was deleted by the CIT....

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.... sale deeds. Therefore, the addition of Rs. 14,00,000/- as unexplained cash credit u/s 68 of the Act is unwarranted and CIT (A) was justified in deleting the same. It is ordered accordingly. Grounds No.3, 4 & 5 are rejected. GROUND NO.6 14. The assessee has sold several properties and also claimed cost of improvement on these properties. The cost of improvement claimed was Rs. 5,15,000/-. The Assessing Officer disallowed 50% of the cost of improvement while computing the long term capital gains and hence, made an addition of Rs. 2,57,500/-. The relevant finding of the Assessing Officer in making the addition reads as follows :- "6. During the course of assessment proceedings, it is noticed that the assessee has claimed to have got renovat....