TaxTMI 
TaxTMI 
2018 (9) TMI 532
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....ion 50C, adopted the sale consideration of Rs. 20.00 lakhs as per SRO value and the Assessing Officer has also allowed indexed cost of acquisition and improvement by considering the contract agreements entered into by the assessee with one Mr.Narayana and also furnished copies of receipts issued by Mr.Narayana in proof of having received the payments from the assessee and accordingly, assessment is completed. Subsequently, ld. Commissioner after examining the records, it is noticed that the sale of subject matter of the property is only a vacant land, admeasuring 200 sq.yds without any structure and compound wall. Thus, the Assessing Officer ought to have disallowed assessee's claim of deduction towards indexed cost of construction of compound wall and the cost of improvements, as he is not entitled for the same. However, the Assessing Officer has allowed the assessee's claim on the basis of payment receipts and contract agreement entered into with a mason namely G.Narayana. Hence, the assessee's claim of indexed cost of improvements and indexed cost of construction of compound wall of Rs. 13,63,507/- is prima facie not tenable on facts of the case and accordingly order passed by t....
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.... floor, Aayakar Bhavan, Dabagardens, Visakhapatnam, on which date you may appear before the undersigned, either personally or through an authorized representative, failing which it will be deemed that you have no objection for the proposed revision u/s. 263 of the Act. 3. In response to the above, the assessee filed a reply dated 16/12/2016 which is as follows:- "I have worked in Revenue Department and retired from service in the year 2004. During the F.Y 2001-02, a house site was allotted to me by the Revenue department Non gazetted employees Co-operative House building Society Ltd. The copy of the purchased deed for allotment of the site is enclosed herewith. I wish to bring to your kind notice that there was a clause in the terms and conditions between the society and purchaser as per the allotment deed. It bounds the purchaser to construct a building on the allotted property within a period of 12 months or otherwise the society is at liberty to take back allotted site. Hence I have made land leveling and development and then constructed a compound wall and a shed which is in a livable condition in a haste. The cost towards improvements to the property is as detailed below: ....
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....expenses. Further, I submitted that the above sale consideration of Rs. 13,75,000/- was utilized for the purpose of performing the marriage of my daughter on 5th November, 2009 and also to clear debts taken for medical treatment of my wife. I did not utilize the said amount for any other beneficial purpose. I request your goodself to please consider my family and financial situation that has arisen at the time of sale of the said property. If any adverse action is taken by your good self at this juncture, my financial position will become much worse. 4. Ld. Commissioner has examined the reply filed by the assessee and observed that construction of building as per terms and conditions of the allotment of plot is not relevant and as per the sale deed, no such reference to the construction of compound wall or any house. Therefore, the explanation of the assessee cannot be accepted. It is clear from the sale deed that on the date of sale, there is no compound wall and no construction, therefore, the assessee is not entitled for indexed cost of construction/improvement of Rs. 13,60,507/-, which was accepted by the Assessing Officer. The ld. Commissioner further examined that the Ass....
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.... is an individual not filed return of income. The Assessing Officer issued notice under section 148 of the Act. In pursuance to that, the assessee filed return of income and admitted long term capital gain of Rs. 5,05,415/- against the sale of immovable property. As per the sale agreement, the assessee has claimed that he has received sale consideration of Rs. 13,75,000/-, however, the Assessing Officer has not accepted the sale consideration received by the assessee. As per the sale deed vide document No. 1589/2008, dated 10/11/2009 the Assessing Officer adopted the market value of this property as per the SRO records for stamp duty purpose of Rs. 20.00 lakhs. The assessee has also claimed before the Assessing Officer that he constructed a compound wall and also shed in the scheduled property and claimed expenditure as deduction of Rs. 13,63,507/- the same is allowed by the Assessing Officer. Before the Assessing Officer, the assessee has filed a contract agreement entered for the purpose of construction of compound wall and shed. The Assessing Officer by considering the same, came to a conclusion that there was a building and compound wall, which was pointed out by the ld. counse....