2017 (11) TMI 114

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assessee society purchased four plots of freehold land in 1970 in Garodia Nagar, Ghatkopar east, Mumbai. The chief promoter and secretary of the society named Shri V. Srinivasan purchased a flat for a sum of Rs. 38,000/-. Subsequently, consequent to the enquiry conducted on him for losses implicated on the society, the assessee herein became entitled to recover a sum of Rs. 2,98,000/- from him. Consequent thereto, the assessee took possession of the flat of Shri V. Srinivasan in 1974. After due process of law and also on consent terms, it became the owner of the said flat also. The assessee sold the said flat on 30- 12-2010. The assessee invested a sum of Rs. 36.10 lakhs on 23.3.2011 and further invested a sum of Rs. 33.99 lakhs on 9.6.2011....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e had obtained a valuation report from a registered valuer, who had estimated the fair market value as on 1.4.1981 of the flat at Rs. 3,33,000/. The Ld A.R submitted that the assessee had submitted the same before the AO before the finalisation of the assessment order, but the AO did not consider the same. The Ld CIT(A) took the view that there is no evidence to show that the valuation report was submitted to the AO and further rejected the same on the reasoning that the assessee has furnished the same as additional evidence without moving a petition. The Ld A.R submitted that the assessee had adopted the Fair market value as on 1.4.1981 at Rs. 2,03,000/-, which is much lower than the registered valuer's report of Rs. 3,33,000/-. 6. I he....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... & Co for tax consultation and Rs. 20,000/- paid to Shri A.G. Pandit for drafting agreement for sale and transfer of shares of the flat. 9. The Ld A.R contended that these expenses have been incurred in connection with the transfer of flat and hence they should be allowed. On the contrary, the Ld D.R submitted that these expenses are not related to sale. 10. I notice that the assessee has paid Rs. 10,000/- to M/s B.R Dalal & Co for available tax consultation. The same, in my view, cannot be considered as expenses incurred in connection with transfer of flat as the flat can be transferred without taking advice also. In any case, the tax advice shall be useful post transfer only. Accordingly I confirm the order of Ld CIT(A) on this issu....