2026 (3) TMI 609

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....s u/s. 147 of the Act were initiated in the case of the assessee on the basis of the information in Insight Portal that the assessee had sold an immovable property for an amount of Rs. 83,80,000/- and the assessee did not file return of income. In response to notice u/s. 148 dated 15.03.2024 the assessee filed return of income on 17.05.2024 declaring capital gains of Rs. 1,54,497/- after claiming indexed cost of acquisition at Rs. 5,08,794/- and indexed cost of improvement of Rs. 77,16,709/-apart from declaring income from other sources of Rs. 12,737/-. However, the AO denied 50% of indexed cost of improvement and made addition of Rs. 38,58,354/- on the ground that the assessee failed to provide documentary evidences regarding the claim for....

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....pugned property, which further concretes the fact that the construction work was done by the said person at the agreed consideration of Rs. 13,65,000/- (iv) The addition was made merely by postulating presumption that the construction work cannot be undertaken by a person 16-17 years of age or by a person not having a certain qualification, whereas the contractor of small construction work does not have such criteria of age or qualification. (v) The addition was made without considering the documentary evidences furnished by the appellant, such as sale and purchase deed from where it is clearly ascertainable that at the time of purchase of property there were only one hall and two rooms, whereas at the time of sale of prop....

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.... The AO once again made reference to verification unit of the department and requested to collect the details from Sh. Ganga Prasad in respect of construction work. In response to the same reply was received from Sh. Ganga Prasad the contractor which is narrated by the AO at page-11 of the assessment order. In reply to notice u/s. 133(6) of the Act the contractor confirmed that he had undertaken the construction work and the confirmation given earlier was also enclosed. He also furnished his Aadhar card and PAN Card alongwith copy of return for the A.Y.2024-25 narrating that is presently earning commission income from real Estate business and also employed in Sathi Associates. The reply given by Sh. Ganga Prasad also suggest that he was ear....