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2015 (7) TMI 168
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....see had claimed deduction u/s 54 to the tune of Rs. 5,55,00/- in his return of income. The computation of capital gain, filed by the assessee, along with his return of income, is reproduced hereunder:- " 285, Sector-2, G.C. Bawal 1/3/2008 1000000 Sales Considertion Less: Indexed Cost Purchase Cost &nbs....
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.... 420323 &n....
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....hrough DD. The details are at pages 2 & 3 of the assessment order. The assessee also filed the allotment letter dated 27th July 2003 in respect of property No. 285 Sector 2HSIDC, Bawal. The assessee filed following reply:- " That all the payments to HSIDC(Govt. Industrial Corp) are made through DD. The bank statement regarding DD issued and some receipts are enclosed. Further the copy of conveyance deed executed with that corporation before executing the sale, which is mandatory, is also enclosed where it is clearing mentioned that payment of Rs. 324000/- has already been made since 21/7/2003." 4. The Assessing Officer accepted that assessee had purchased this property for Rs. 3,24,00/-and had incurred expenditure of Rs. 20,200/- for the....
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....5. The assessing officer further show caused the assessee as to how deduction u/s 54 was allowable to him on sale of a plot and further required to file documentary evidence in support of his contention. The assessing officer has observed that assesses changed his contention and claimed the deduction u/s 54F. The Assessing Officer noticed from the documents filed by the assessee in support of his claim for deduction u/s 54F, that assessee had made investment of Rs. 5,55,00/- in a Plot with CHD Developers Karnol. The Assessing Officer noticed that though assesses had shown that he had made an investment in Flat but as per allotment letter issued by CHD Developers. The assessee had been allotted a plot by the CHD Developers. Accordingly, asse....
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....Rs. 32,600/- to Smt. Prem Lata Jain. After considering the position of investments made by assessee, the assessing officer observed that the assessee's investment in non business assets in much more than his capital. He further noted that during the year assessee had invested Rs. 8,76,642/- in shares and securities. Accordingly, he disallowed the interest paid to Smt. Prem Lata amounting to Rs. 32,600/- being for non business purposes. 8. Ld. CIT(A) allowed proportionate deduction u/s 54F and confirmed the addition in respect of under point of disallowance of interest. 9. The Assessing Officer levied penalty u/s 271 (1) (c). Ld. CIT(A) dismissed the assesssee's appeal after considering the assessee's written submissions. 10. The assessee....
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....f Ld. DR. The facts are not in dispute. The assessee had advanced claim in regard to computation of long term capital gain after giving the details of purchase cost and the improvement cost over 4 years. The indexed cost of acquisition was accordingly computed. The assessing officer, however, only took into consideration the amount paid as per allotment letter and expenses on conveyance deed. The assessee in its reply, as reproduced earlier, stated that all the payments were made through DD. The AO did not accept the entire cost of acquisition claimed at Rs. 4,20,323/-.Mere disallowance of certain expenses claimed by assessee as cost of acquisition could not lead to the conclusion that assessee had advanced any false claim only because asse....