2026 (6) TMI 735

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....come on 13/12/2014. The case was selected for scrutiny and an order u/s. 143(3) was passed by taking the cost of acquisition as Rs 5,00,794 based on the purchase deed. Aggrieved by this order, the assessee filed an appeal before the Ld.CIT(A) and the same was dismissed on 07/02/2018. 3. Subsequently, the assessee filed an appeal before the Tribunal and the Tribunal by an order dated 13/09/2019 in ITA No. 1093/Bang/2018 had set aside the issue to the file of the AO for fresh decision after examining the nature of the difference between the amount of cost of acquisition as per the purchase deed and as per the certificate issued by the Telecom Employees' Co-operative Housing Society Ltd. dated 17/01/2017. The Tribunal also held that the rev....

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....has been filed by the assessee before this Tribunal. 7. At the time of hearing, the Ld.AR submitted that the assessee had purchased the property for a total sale consideration of Rs. 11,92,923/- as evidenced from the certificate given by the seller M/s. Telecom Employees' Co-operative Housing Society Ltd. and after adding the registration and stamp duty charges, the actual cost of acquisition of the property comes about Rs. 12,29,982/-. The Ld.AR further submitted that because the guideline value is lesser than the actual cost of the property, to avoid the payment of the stamp duty, the guideline value has been mentioned in the sale deed and therefore the same should not be taken as the cost of acquisition of the property. The Ld.AR furt....

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....rused the materials available on record. 10. The AO in the first round had not accepted the cost of acquisition as claimed by the assessee by relying on the sale deed. In the sale deed, the cost of acquisition has been mentioned as Rs. 4,61,250/- as against the actual cost of acquisition Rs. 11,53,125/-. The assessee had actually paid a sum of Rs. 11,53,125/- as the cost of the plot from the Telecom Employee's Co-operative Housing Society Ltd. but the guideline value of the Government was less than the actual cost of the plot and therefore the assessee had mentioned the guideline value in the sale deed in order to avoid the payment of the extra stamp duty. No doubt, this is not correct but insofar as the proceedings under the Income Tax ....

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....w had failed to consider the said details and granted the benefit in accordance with law. 12. The assessee had not appeared before the Ld.CIT(A) but before us, it was demonstrated that the cost of acquisition is not the amount mentioned in the sale deed. Therefore to render justice, we are considering the said documents and found that the assessee's claim is in order. No purpose would be solved if the matter has been remitted to the file of the AO when the details are available before us and not disputed by the authorities. We therefore, accept the cost of acquisition given by the assessee while computing the long term capital gain. 13. Insofar as the estimation of the cost of improvement at 30% of the actual expenses, we are not in a....