TaxTMI 
TaxTMI 
TaxTMI 
2021 (7) TMI 189
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....ship firm by sustaining disallowances to the extent of Rs. 31,690/- as against Rs. 58,769/- made by assessing officer. 3. It is therefore prayed that above disallowances / additions made by assessing officer and confirmed by Commissioner of Income-tax(Appeals) may please be deleted. 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Facts in brief as gathered from the orders of the lower authorities are that the assessee is an individual and derived income from salary, interest income and fro house property. The assessee filed has filed e-return of income on 29.03.2011 declaring total income of Rs. 2,40,610/-. The case was selected for scrutiny. During the assessment, the ld. Assessing Officer (AO) noted that he has received AIR information that assessee has sold immovable property / land for a sale consideration of Rs. 95 lakhs out of Survey No.368/A, Block No.428 of village Kanbha, taluka Daski, Dist Ahmedabad. The conveyance deed of sale transaction was registered on 15.10.2009 at Sub-Registrar Office, Odhav Ahmedabad. The assessing officer asked the assessee to furnish the copy of sale consideration ....
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....the assessee and ld. Departmental Representative (Sr.DR) for the Revenue and perused the material available on record. Ground No.1 relates to addition in short term capital gain of Rs. 21,35,877/-. The ld.AR of the assessee submits that the AO made addition solely on the basis of AIR information that assessee sold piece of land along with co-owner. The assessee is having 1/4th share in property in Survey No.368/A, Block No.428 of village Kanbha, District Ahmedabad. The assessee explained before AO that the sale transaction was not completed. The parties are litigating in the Civil Court. The purchaser issued cheques for sale consideration, which were dishonored. The assessee along with co-owner made objection before Sub-Registrar and the conveyance deed of sale transaction was hold and not released to the purchaser. The assessee and his co-owner has already filed a Civil Suit for declaration for cancellation of conveyance deed of sale transaction. The copy of certified copy of Civil Suit is placed on record. The Ld. AR submits that ld.AO made addition solely on the basis of AIR information has not considered that neither the property was transferred nor the sale consideration was r....
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....late proceedings that the State Deed was never released by the District Registrar Office due to the dispute between appellant and the purchaser. The AO was directed vide this office letter dated 24.12.2014 to obtain the copy of the sale deed from the concerned Sub-Registrar Office as the appellant had expressed his inability to obtain the sale deed. The AO vide his remand report dated 29.03.2015 submitted that the Sub-Registrar, Odhav, Ahmedabad has informed that the sale deed is not available with them. The appellant was provided the copy of the remand report on 08.04.2015. The appellant submitted that it had already informed the AO during the assessment proceedings that the sale deed had not been released by the competent authority as the transaction was disputed. 6.1.3 The above facts show that during the assessment proceedings the appellant had informed the AO vide his letter dated 07.03.2013 that the land sale transaction was a subject matter of dispute and the sale deed has of the Act been released by the District Registrar Office. The appellant continues to be in possession of the land even today as per the 7/12 and 8A report. The appellant did not receive the entire con....
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....allowance of Vehicle Expenses. The ld.AR of the assessee submits that Assessing Officer made the disallowance of depreciation of motor vehicle of Rs. 40,809/- and vehicle expenses of Rs. 17,690/- by taking view that assessee has not carried out any business activities. The ld.AR for the assessee submits that assessee is a partner in three firms and derived income from remuneration, interest and profit from such firms. Remuneration and interest income earned from the partnership firm is taxable under the head Business Income and the assessee has claimed such expenses for discharging his duties as a partner of a firm. The Assessing Officer erred in law in not treating partner's capital interest and remuneration as business income. The Assessing Officer has not disputed the nature of expenses and not pointed out the unreasonableness or excess payment of expenses. The Assessing Officer simply disallowed the depreciation and vehicle expense by taking view that no business is carried out by the assessee. The Ld. CIT(A) partly upheld the action of Assessing Officer to the extent of Rs. 31,690/-. The Ld. CIT(A) allowed the depreciation of Rs. 18,099/- against the claim of Rs. 36,199/- on t....