TaxTMI 
TaxTMI 
2026 (4) TMI 730
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed in law as well as on facts by upholding disallowance of current year business loss of Rs. 2,57,516/- made by Ld. AO without any basis. 3. The Ld. CIT(A) has erred in law as well as on facts by not properly appreciating and considering submissions, evidences and supporting documents placed on record during the course of the appellate proceeding 4. The Ld. CIT(A) has erred in law as well as on facts by declining to take cognizance of additional evidences produced and not considering evidences for adjudication." 3. The brief facts of the case are that assessee is engaged in the business of land development as well as buying and selling of land and building. The assessee filed its return of income for the year under consideration, i.e. 2023- 24 on 30/10/2023. The case of the assessee was taken up for scrutiny assessment for the reason, "Low Long Term Capital Gain and high improvement cost". 3.1. During the assessment proceedings, the Assessing Officer (AO) observed that the assessee had sold a land of property for consideration of Rs. 12,79,25,000/- during the year under consideration, upon which the assessee had offered Long Term Capital Gain (LTCG) of Rs. 2....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and Judiciary, however, remained unsuccessful in getting the land vacated and finally the assessee decided to pay compensation to the illegal encroachers and, accordingly, settled the issue by making payment. The assessee furnished notarized agreements with 47 such encroachers to whom the total payment of Rs. 7,65,95,000/- was made out of which Rs. 3,65,25,000/-was made in the year 2016 and the remaining amount of Rs. 4,00,00,000/- was paid in the year 2023. The said expenditure was claimed as cost of improvement in the return of income. The assessee also requested the Ld. CIT(A) to get the aforesaid facts verified by calling remand report from the Ld. AO. The Ld. CIT(A), however, observed that it was not clear as to whether the aforesaid evidences furnished by the assessee were adduced before the AO or not. He, therefore, declined to recognize the evidences furnished by the assessee. He further observed that the AO had noted that the assessee had not furnished complete details of expenditure incurred by it including bills/vouchers and names & addresses of the payees, etc. He, however, observed that "Whereas appellant's assertion regarding 192 dwelling structures on the land has n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....usiness loss claimed by the assessee. It is, therefore, being a clerical mistake in taking the total business loss by the AO and there being no adverse findings against the assessee regarding validity of the said claim, the impugned addition of Rs. 2,57,516/- on account of such discrepancy in the business loss claimed is, therefore, ordered to be deleted. 8. So far as the issue relating to cost of improvement claimed by the assessee along with indexation thereupon in computing the LTCGS is concerned, the Ld. AR of the assessee has relied upon various evidences furnished before us. He has also submitted following evidences were also duly furnished before the Ld. CIT(A): "Sr.No. Particulars Page No. of the paperbook 1. Copy of sale deed dated 21.02.2023 08-118 2. Copy of purchase deed dated 24.04.2007 119-141 3. Copy of town planning officer highlighting encroached land 142 4. Application made to Ahmedabad municipal corporation for removing illegal encroachment in said land dated 19.02.2003 143-144 5. Application made to Ahmedabad municipal corporation for removing illegal encroachment in said land dated 10.11.2016 145 6. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d vouchers, etc. furnished by the assessee to claim the aforesaid compensation. The Ld. Counsel for the assessee has submitted that despite furnishing of voluminous evidences, the lower authorities have mechanically ignored the same stating only that the complete details were not furnished, without pointing out any discrepancy, etc. in the various evidences furnished by the assessee. 8.3. Considering that the short dispute was relating to examination of bills and vouchers, etc. furnished by the assessee, it was observed that referring the matter back to the file of the AO will result into a long protracted litigation again. It was requested by the Ld. Counsel for the assessee that this Bench should appreciate the evidences on the file, so that the assessee may be saved from facing both the physical and financial hardship from multiple stages of litigation. Therefore, the Ld. CIT-DR was requested to examine the evidences on the file and point out, if there was any serious discrepancy in the same. Accordingly, the case was adjourned for the next date of hearing. 8.4. The Ld. CIT-DR stated at bar that he has thoroughly examined the evidences furnished by the assessee including t....