TaxTMI 
TaxTMI 
2026 (6) TMI 293
X X X X Extracts X X X X
X X X X Extracts X X X X
....er dated 18.12.2018 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by ITO, Ward-40(1), New Delhi for AY: 2011-12. 2. Brief facts of the case are that as per information available under NMS -non-filers category, the assessee had sold immovable property amounting to Rs. 2,52,00,000/- during the year under consideration which does not commensurate with profile of a non-return filer. Reasons were recorded and after prior approval of the competent authority notice u/s 148 of the Act was issued to assessee on 28.03.2018. In response to notice u/s 148 of the Act, the assessee filed her return of income on 08.05.2018 declaring an income of Rs. 1,55,000/- under the head capital gain and income from other sour....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appeal assessee re-asserted the claim and relied certain case laws and ld. CIT(A) has sustained the addition with following findings; "6.1 On Ground of Appeal No. 1: - The appellant has submitted that she sold her 1/3rd share in an old tenanted property at Beadon Pura, Karol Bagh for Rs 84,00, 000/-. She claimed deduction of Rs. 52,08,910/-as payments to tenants for eviction of property. The AO disallowed the claim holding that documentary evidence was insufficient and that the claim appeared to be a tax evasion device. Copies of cheques, passbooks, affidavits and agreements were filed by the assessee. However, the onus is on the assessee to conclusively establish that such payments were actually made for eviction, supported by co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sale deed itself renders the claim doubtful. In view of the following, I find no infirmity in the disallowance made by the Assessing Officer: (i) lack of substantive evidence of necessity of payment, (ii) incorrect tax treatment in the hands of the alleged recipient, and (iii) absence of double taxation. Therefore, the disallowance of Rs. 52,08,910/- made by the AO is confirmed and this ground of appeal is dismissed." 5. Ld.AR has reiterated the averments as made before ld. tax authorities. It was submitted that the assessee is a housewife and did not have any income except interest on bank deposits and her income was below taxable limit during the year thus had not filed any Income Tax Return for the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment dated 11.03.2011 executed with Shri Gurcharan Kumar Ghai confirming handing over of physical procession of his share in property along with receipt of payment of Rs. 22 Lacs by cheque. It is unfortunate that Ld.A.O has ignored the facts & documents submitted and passed the order which is against the Natural Justice of Law. Even the A.O. did not bother to call the concerned person/recipients of payment to confirm the transaction taken place. 5.2 That during assessment proceedings, the assessee had been retreating before assessing officer that expenditure of Rs. 53 Lacs incurred towards payment of compensation to the tenants for vacating the premises has a direct nexus with sale transaction of captioned property and tenants vacating t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of construction was Rs. 7,600/- per sq. mtrs. The type of construction has shown as pucca and land use is shown as commercial. Minimum cost of land is shown as Rs. 2,40,60,660/- and cost of construction is Rs. 11,21,000/- and the year of construction is mentioned is before 1959. A pertinent recital is recital No. 7 which is reproduced below: "7. That the Vendors now admit that they have been left with no right, title and interest of any nature whatsoever in the said property and the Vendee has become the absolute owner of the same. He will use and enjoy the same in any manner, he likes, including the right to sell, transfer or alienate the said property to anyone including the right to give the said property on rent to anyone and ....