TaxTMI 
TaxTMI 
2025 (5) TMI 1159
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....e, appellant had correctly claimed cost of improvement and the authorities below had erred in law and on the facts by passing the impugned order disallowing cost of improvement incurred in furnishing the flat and the Ld. NFAC was not at all justified in confirming the action of the Ld. AO because at both end they failed to appreciate the fact that a furnished flat (which is the present case) fetch significant more value than the unfurnished raw flat delivered by the builder. In view of this factual error, the orders passed by the authorities below deserve to be annulled/cancelled. (c) That the authorities below were not justified to disallow the above-mentioned claim ignoring the details/ evidence filed in support of the same and the expenses were directly relatable to improvement of property in respect of which the Capital Gain was in question and therefore, the orders passed by the authorities below deserve to be annulled/cancelled. (d) That the ld. AO was not justified in initiating penalty proceedings u/s 270A(9)(c) by concluding that the assessee has claimed expenses towards cost of improvement amounting to Rs. 49,64,602/- but the same is not substantiated wi....
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.... adjournment sought for and in such circumstances we proceeded ourselves to decide the instant Page 6 of 12 appeal its merit alone and for this purpose we heard Ld. DR and carefully perused the material on record. 5. Regarding ground No. 1 by way of instant appeal, grievance expressed regarding disallowance of index cost of improvement amounting Rs. 49,64,602/- while working out the capital gain on sale of property being flat No. A-5/705, Sahara Grace, Chakkarpur, Sector-28 Gurgaon whereas assessee/ appellant correctly claimed cost of improvement and both the authorities below erroneously disallowed cost of improvement incurred in furnishing the flat and not appreciated material fact that a furnished flat fetch significant more value than the unfurnished raw flat delivered by the builder and ignored details/ evidence filed in support of the claim. 6. The assessee has submitted the details of improvement bill as under :- 7. Per contra the ld. DR relied upon the orders passed by both the lower authorities. 8. Regarding this issue the Ld. AO observed that the explanation furnished by the assessee found not tenable as the expenses incurred towards the item are not integral ....
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....sed by the coordinate Bench in ITA No.4959/Del/2018 Nan Kumar Taneja Vs. ITO, Ward-33, New Delhi in which coordinate Bench held that income tax return, cash book maintained by the assessee have neither been rebutted over there is no any finding that case in hand disclosed in the balance sheet was beyond the scope of their income or are not substantiated from the bank account and simply because after the period of demonetization, certain amount of cash has been deposited in the account, does not mean the case in hand as on 31.03.2015 and 31.03.2016 which is duly shown in the balance sheet and discussed with the department in the respective income tax return file and earlier is unexplained likewise also relied upon the order of the coordinate Bench in ITA No. 788/AHD/2012 Sudhir Bhai Praveen Kant Thaker Vs. ITO AHD in which held as under :- "We find merit into the contention of the Ld. Counsel for the assessee that there is no dispute that the amount which was withdrawn by the assessee on various dates during the 2006 was available with him for making deposits. In the absence of finding that the amount which was previously withdrawn by the assessee had been utilized for any ....
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.... registration of flat in the name of the assessee (@ 1% of Unit Cost due to L&DO) 82,830 5 137 1,59,614 12-09-2008 MLS & Company Cash Floor Finishing Expense Civil Work Material incluiding Sanitary wares, Fitting & Designer Tiles 77,641 8-8A 137 1,49,615 10-12-2008 Bank/Cash Cash Consumable for Kitchen Work Civil Work Material for Kitchen construction 77,435 9 137 1,49,218 27-11-2008 Sita Fabrics Cash Furnishing Fabrics Curtains etc. 76,510 10 137 1,47,435 21-11-2008 Hardware Palace Cash Kitchen Equipments Civil Work Material for Kitchen construction including Chimney, Hob Microwave Oven etc. 64,000 11 137 1,23,328 06-11-2008 Hardware Palace Cash Fitting Items Civil Work Material for Kitchen construction 55,927 13 137 1,07,772 06-11-2008 Maharani Electricals Cash Home Appliances 6 Water Heater 44,190 15 137 85,154 15-10-2008 Cawar Intl. Electronics Pvt. Ltd. Credit Card Kitchen Equipments Dishwasher 27,000 16 137 52,029 04-11-2008 Maharani Electricals Cash Home Appliances 25 Bajaj Fans 21,544 17 137 41,515 05-12-2008 Cawar Intl. Electronics Pvt. Ltd. Credit Card Home Appliances Amplifier (REF VX DC50 WH VOX) 21,500 18 137 41,431 Cawar Intl. Ele....
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..... Credit Card VANDANA MATHUR (AY 2017-18) PAN: AHYPM2370G Summary of Improvement Bill Designer lights 5,23 25 15 Document 3 VE U Date Billing Party Paid Throu. Nature of Expenditure Detailed Description of Cost of Acquisition Amount (s) |P.16G. 08-12-2008 Bank/Cash A/c & Furniture A/c & Furniture 21-10-2008 Bank/Cash Furniture Cli of imp Indexed COI 06-11-2008 Maharani Electricals Electrical Fitting: Items Electric items like Max150 and Bor zi 12 1,15,620.44 06-12-2008 Ramjee Steel Furr iture Furniture Furniture like stair and stand 2,59 137 137 96,350.34 07-12-2008 Sytle & Décor Bathing Equipments Toilet Set 31 137 5,008.29 04-11-2008 Surya Electronics Cash Electrical Fitting: Items Electric items 1 32 137 4,913.87 06-12-2008| Consumable for work Bathing Equipments L ke Bucket, Wipe", Brush, Mugs, Pocha, Garbage 1.2 35 137 3,642.04 Bag and etc. 1,12 40 4 137 2,360.58 10-12-2008|Consumable for Kitchen Work Kitchen Equipments Baskets 137 2,165.96 950 4 22-11-2008 Deco Lite Cash Electrical Fitting Items Designer lights 137 1,830.66 23-11-2008|CPL Switches Cash Electrical Fitting:....