TaxTMI 
TaxTMI 
2025 (9) TMI 31
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....ng grounds of appeal: "1. Disallowance of Indexed Cost of Improvement-The CIT(A) erred in confirming the disallowance of the cost of improvement amounting to Rs. 6,00,300/-, of which the indexed cost of improvement amounted to Rs. 11,08,780/-, where the appellant's share was 2/5th (1/5th for himself and 1/5th for his minor daughter, whose income was clubbed with the appellant's). The cost of improvement was paid in cash in instalments, which explains the absence of payments in the bank statement. The appellant provided sufficient evidence, including contractor bills and details of work performed. 2. Incorrect restriction of Deduction under Section 54-The CIT(A) erred in restricting the deduction under Section 54 to 50% of ....
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....elay in filing the appeal and admit the same for adjudication. 4. The brief facts of the case are that the assessee, Shri Dilip Mohandas Devani, had sold an immovable property on 16.01.2012. The sale deed showed the total consideration for the property at Rs.41,00,151/-, which had been shared equally among five co-owners, including the assessee and his minor daughter. However, the Assessing Officer observed that the stamp duty paid on the transaction showed a higher stamp duty valuation of Rs.67,14,284/- with respect to this property. The Assessing Officer noted that as per section 50C of the Income-tax Act (Act), the stamp duty value must be adopted as the full value of consideration for computing capital gains. The assessee had not fil....
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....e total investment was considered as the assessee's share by the Assessing Officer. However, the Assessing Officer granted exemption to the extent of actual capital gain in the hands of the assessee. After considering the correct sale consideration under section 50C of the Act and disallowing the cost of improvement, the total long term capital gain was computed at Rs.15,99,618/-, which was added to the assessee's total income. Accordingly, the assessee's total income was determined at Rs.16,01,310/-. 5. In appeal before Ld. CIT(A), he partly allowed the assessee's appeal. The CIT(A) first examined the applicability of section 50C of the Act. and upheld the Assessing Officer's view that the full value of consideration for the purpose....
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.... the CIT(A) recalculated the total long-term capital gain in the assessee's hands at Rs.9,29,639/-, as against Rs.15,99,618/- computed by the AO. Accordingly, the appeal was partly allowed. 6. The assessee is in appeal before us against the order passed by CIT(Appeals) dismissing the appeal of the assessee. Before us, the counsel for the assessee submitted that the assessee had sold an immovable property along with four co-owners. The sale consideration was Rs.41,00,151/- as per the sale deed, but for the purpose of computation of capital gains, the stamp duty valuation of Rs.67,14,284/- was adopted by the Assessing Officer under Section 50C of the Act. The assessee held a 1/5th share in the property, and another 1/5th share belonged to ....
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....e passbooks or bank slips for a transaction that occurred nearly 24 years ago (in 2001) was unreasonable, especially when the bills and contractor details were already submitted. The counsel for the assessee submitted that the assessee had provided the best available evidence, and the disallowance made by the Assessing Officer was arbitrary and unfair. As for the deduction under Section 54 of the Act, the assessee contended that the CIT(A) wrongly limited the exemption to 50% of the total investment merely because the property was in joint names, without considering the fact that the investment was made in the ratio of 2:1 between the assessee and his wife. The counsel for the assessee pointed out that this contribution came directly from t....
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....g to their respective shares in the sale proceeds of the original property, which included the share of the minor daughter whose income is clubbed with that of the assessee. The assessee has also submitted that the investment in the new property was made entirely out of the sale proceeds of the old property and that an Affidavit from both the co-owners confirming this ratio of 2:1 has also been placed on record. In our view, the actual contribution towards the purchase of the new house is a relevant factor while determining the eligible exemption under Section 54 of the Act. Therefore, we are inclined to accept the assessee's claim in principle, subject to verification of the actual contributions made by the assessee and his wife towards th....