TaxTMI 
TaxTMI 
2015 (6) TMI 484
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....ssee. 2. The brief facts of the case are that the assessee is an individual. He has filed his return of income on 26th March, 2009 declaring total income of Rs. 50,970/-. The case of the assessee was selected for scrutiny and notice under section 143(2) of the I.T. Act, 1961 was issued and served upon the assessee. On scrutiny of the accounts it revealed to the AO that assessee had shown capital gain of Rs. 2,88,415/-. It emerges out from the record that assessee had purchased a piece of agricultural land bearing survey No.334/1/2/1/2 in revenue area Thaltej, Ahmedabad measuring 2675 sq.mtrs. This piece of land was purchased on 27th March 2006 for a sum of Rs. 6,00,000/-. It was sold on 22nd January, 2008 for a sum of Rs. 31,65,800/-. Th....
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....f any dwelling unit or construction of such dwelling unit in the sale deed dated 22.01.2008. The claim of so called expenses incurred towards drainage, bore, matipuran and fertilizers were not made before the AO and no any bills or vouchers for these expenses were ever produced before the AO or during the appellate proceedings. It is an entirely new claim to reduce the incidence of tax and are not allowable in absence of any supporting evidence. The total claim made during the appellate proceedings is for Rs. 22,77,315/- (Rs.70,000/- stamp duty + Rs. 35,000/- advocate fees + Rs. 7,12,315/- expenses incurred out of own account + Rs. 7,50,000/- expenses incurred by his son Nitin Patel + Rs. 7,10,000/- expenses incurred by his son Himanshu Pat....
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....ting to improvement of the land. These expenses are mainly seen to be for the finishing work of any building. From the examination of these expenses it can be inferred that the expenses on the whole building were not less than a crore of rupees and such building was not found constructed on the land so sold. These expenses may be relating to any other building of assessee's sons. Thus, these expenses incurred on construction material and related labour cannot be linked to the land sold and cannot be allowed as improvement expenses of the land. Likewise the expenses of Rs. 70,000/- stated to be incurred on stamp duty (no source of incurring of expenses), Rs. 35,000/- for advocate fees (no bill or money receipt or no source of expenditure) an....
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....ure incurred wholly and exclusively in connection with such transfer; (ii) The cost of acquisition of the asset and the cost of any improvement thereto. According to the assessee the expenditure incurred for stamp duty, advocate's fees, falls within sub-clause (1) of section 48 i.e. it is connected with transfer of the capital assets. She contended that a sum of Rs. 70,000/- was incurred towards stamp duty and Rs. 35,000/- was paid towards advocate's fees. The other sums have been incurred for improvement of the asset. The ld. counsel for the assessee has reiterated the stand of the assessee canvassed before the ld. first appellate authority. She took us to paragraph 2.1 of CIT(A) 's order where submissions of the assessee have been repr....