2017 (9) TMI 109

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....rcumstances of the case and in law in confirming the Partial addition of Rs. 3,92,103/- (Total addition Rs. 7,84,206/-) made by the Assessing Officer of entire interest paid on borrowed fund from banks utilized for making payment for property which was sold during the year under appeal. 3. That the Ld. CIT (A) was not justified on facts and circumstances of the case and in law in enhancing the long term capital gain on sale of plot by giving Indexation benefit on cost of acquisition from Financial Year 2003- 04 instead of Financial Year 1999-2000 without affording proper opportunity to the appellate. 4. That the Ld. CIT (A) was not justified on facts and circumstances of the case and in law in confirming the Partial additi....

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....494   3. Indexed cost of Acquisition 197340 406 582 282886   4. Indexed cost of Acquisition 165708 426 582 226389   5. Indexed cost of 92765 447 582 103892     Acquisition           6. Charges ICICI 3283 447 582 4274   7. Indexed cost of Acquisition 48500 463 582 60965   8. Indexed cost of Acquisition 34617 463 582 43514   9 Indexed cost of Acquisition (2003- 04) (stamp duty) 6266975 463 582 788119   10. Indexed cost of Acquisition (200405) 9722 480 582 11787 4908726   Tot....

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....ed back to the income of the assessee. 6. Aggrieved by the addition of the AO, the assessee filed appeal before the First Appellate Authority. The assessee submitted detailed written submissions before the Ld.CIT(A) and after considering the written submissions and AO's order, the findings of the Ld.CIT(A) is as under:- 5.3 "To verify the fact the appellant was asked to confirm the date of purchase of a plot, and produce the documents evidencing Registry of the plot and also to produce the financial Statement for the year 1999-2000 and 2000-01. In response the appellant produced Conveyance Deed showing that the property had been registered on 02.07.2003, at Rs.24,61,564/- for which Rs.3,07,750/- had been paid as Stamp Duty. Furt....

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....Assessing Officer is directed to initiate action in the case Mrs.Belia Jain or intimate the Assessing Officer of Mrs.Belia Jain in respect of the rest of the disallowance in respect of' including interest payment as part of cost of acquisition. The appellant thus gets part relief, however, the indexed cost of acquisition is amended as discussed above." 7. Ld.CIT(A) in respect of adhoc addition i.e. 1/5 of car running expenses reduced to the 10% and partly allowed the appeal of the assessee. 8. Aggrieved by the order of the Ld.CIT(A), the assessee filed appeal before the ITAT. 9. Ld.AR reiterated the submissions made before the Ld.CIT(A) and he also produced the Paper Book which contains to 1 to 206 pages and he referre....

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....ngs, therefore, in this case, it is not applicable. 11. Ld. DR relied on the order of the lower authorities and he submitted that the AO has considered rightly the cost of acquisition of the assets and he refereed section 48 of the Act regarding cost f acquisition. He further submitted that after the acquisition of assets registered in the name of the assessee, no other expenditure can be allowed. He further submitted that in the computation of capital gain, there are three types of expenditure which can be deducted from the net consideration which is as under:- (i) Cost of acquisition of assets; (ii) Cost of any improvement therein & expenditure incurred wholly and exclusively in connection with the transfer of assets.....