ITAT directed AO to take STCG from property sale by allowing renovation expenses
ITAT directed AO to take STCG from property sale by allowing renovation expenses
Assessee declared income from sale of bunglow, being short term capital gain. AO did not agree with assessee’s submissions on cost of house property and renovation expenditure. AO framed assessment. CIT(A) confirmed AO’s order. ITAT held that assessee had placed all the bills and vouchers qua the expenditure incurred. It directed AO to take STCG from sale of property by allowing renovation expenses.-500792
1. Assessee filed his return of income declaring an income of Rs. 16,09,415, which comprised of income from sale of bunglow, being short term capital gain.
2. The case was selected for scrutiny and notices u/s 143(2) (of Income Tax Act, 1961) and 142(1) were issued.
3. AO did not agree with the submissions of the assessee on the point of cost of house property and renovation expenditure.
4. AO framed assessment at Rs.54,21,146.
5. CIT(A) confirmed the order of AO.
On appeal, the ITAT held as under:
6. In our opinion the assessee had placed all the bills and vouchers qua the expenditure incurred by the assessee before the AO and CIT(A).
7. In view of these facts the order of the CIT(A) is not correct and cannot be sustained as not based on facts before him.
8. We therefore, allow the appeal of the assessee by directing the AO to take the short term capital gain from sale of the property at Rs. 15,27,567/- by allowing the renovation expenses as claimed by the assessee.
Case Reference - Shivhari Agarwal vs ACIT.
IN THE INCOME TAX APPELLATE TRIBUNAL "E" BENCH, MUMBAI
BEFORE SHRI SAKTIJIT DEY, JM AND SHRI RAJESH KUMAR, AM
I.T.A. No. 5637/Mum/2011
(Assessment Year: 2008-09)
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