Income Tax Appellate Tribunal - Delhi
Sh. Amit Agarwal, Meerut vs Acit, Meerut on 14 March, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES "SMC" : DELHI
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
ITA.No.5125/Del./2014
Assessment Year 2009-2010
Shri Amit Agarwal,
The ACIT, Circle-1,
C/o. Pushkar Jain, vs.
Aayakar Bhavan,
Advocate, 115-C, Jain
Bhansali Ground,
Nagar, Meerut City-2.
PAN AAMPA1636N Meerut Cantt.
(Appellant) (Respondent)
For Assessee : Shri Neeraj Jain, Advocate
For Revenue : Shri V.K. Jiwani, Sr.D.R.
Date of Hearing : 08.03.2018
Date of Pronouncement : 14.03.2018
ORDER
This appeal by assessee has been directed against the order of the Ld. CIT(A), Meerut, dated 07.07.2014, for the A.Y. 2009-2010, challenging the disallowance of Rs.5 lakhs on account of expenses incurred for improvements in property for claiming short term capital gains. Earlier, the appeal was dismissed for default which is restored by allowing M.A. of the assessee.
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ITA.No.5125/Del./2014 Shri Amit Agarwal, Meerut.
2. The A.O. from the details of capital gain found that assessee has claimed a sum of Rs.5 lakhs as expenses out of short term capital gain on sale of land at Khasra 2214 and 2215 on 1st August, 2008. The assessee was asked to justify the expenditure by filing documentary evidence in respect of the expenditure, but, no documentary evidence have been filed. Assessee later on filed some affidavits at the fag end of the assessment without producing the deponents. In the affidavits, it is claimed that the deponents have received amount in cash as payment for clay filling on the lands. It was mentioned in the affidavit that there was an agreement between the deponents and the assessee to do so but no such agreement has been filed before A.O. No evidence of withdrawal of any cash have been filed by assessee to verify genuineness and date of payment of this expenditure. In the absence of any relevant and cogent evidence on record, the assessee failed to prove genuineness of the expenditure so claimed. Therefore, it was disallowed by A.O. The assessee did not appear before the Ld. CIT(A) and no evidences have been furnished. Therefore, in the absence of any 3 ITA.No.5125/Del./2014 Shri Amit Agarwal, Meerut.
evidence or material on record before Ld. CIT(A), the appeal of assessee has been dismissed.
3. The Learned Counsel for the Assessee reiterated the submissions made before the A.O. and filed copies of the receipts and affidavits which were filed before A.O. and also filed computation of income for assessment year under appeal and submitted that proof of payment of Rs.5 lakhs was Rs.5 lakhs surrendered by assessee on account of other income in the computation of income.
4. The Ld. D.R. on the other hand relied upon the orders of the authorities below.
5. After considering the rival contentions, I am of the view that appeal of assessee has no merit. The assessee failed to file any documentary evidence to prove if Rs.5 lakhs were incurred for filling the clay on the land. The assessee filed some affidavits and receipts in which alleged agreement was mentioned between the assessee and the deponents but no such agreement was produced before A.O. Affidavits were prepared later on at the fag end of the assessment. No evidence 4 ITA.No.5125/Del./2014 Shri Amit Agarwal, Meerut.
of any amount available to assessee for making such payment in cash was filed before the authorities below. Thus, the assessee failed to prove source of payment of Rs.5 lakhs before authorities below. Learned Counsel for the Assessee filed copy of the computation of income to show that assessee surrendered Rs.5 lakhs as other income in computation of income. This itself shows that explanation of assessee is an afterthought. On the one hand assessee surrendered the amount of Rs.5 lakhs as income "from other sources" without proving the source of earning of such income and on the same hand, assessee made a claim of deduction of expenditure of Rs.5 lakhs as expenditure incurred for earning short term capital gains. This shows that assessee very clearly made a bogus claim of incurring of the expenditure just to avoid payment of tax on 'other income' so surrendered in computation of income. The totality of the facts and circumstances of the case, clearly supports findings of the authorities below that assessee made a wrong claim which have been correctly disallowed by the authorities below. The appeal of assessee has no merit and the same is accordingly dismissed. 5
ITA.No.5125/Del./2014 Shri Amit Agarwal, Meerut.
6. In the result, appeal of the assessee is dismissed.
Order pronounced in the open Court.
Sd/-
(BHAVNESH SAINI) JUDICIAL MEMBER Delhi, Dated 14th March, 2018 VBP/-
Copy to
1. The appellant
2. The respondent
3. CIT(A) concerned
4. CIT concerned
5. D.R. ITAT 'SMC' Bench, Delhi
6. Guard File.
// BY Order // Assistant Registrar : ITAT Delhi Benches :
Delhi.