INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Rectification under section 254 - Disallowance of indexed cost of improvement claimed by assessee on sale of plots -

Assessee filed this miscellaneous application against the order passed by Tribunal. Assessee submitted that he had challenged the order of CIT(A) in confirming the disallowance of indexed cost of improvement claimed by the assessee on sale of plots. ITAT held that in sale deed executed by assessee the description of property sold was shown as residential plot and site plan attached with the sale deed also depicts the plot of land and does not show any constructed area thereon. Thus, there is inconsistency in sale deed so executed so far as exact description of the property is concerned. Accordingly, ITAT confirmed disallowance. However, mistake apparent on record had crept in order passed by Tribunal as in sale deed it was clearly mentioned that assessee has sold the plot along with construction thereon, door, windows, fittings, electricity and water connection. Held: Decision of Tribunal was not based solely on review of the sale deed but it has taken into consideration the agreement with the contractor and subsequent affidavit of the contractor and has thereafter arrived at its findings that, given inconsistency in description of property in sale deed and in absence of any corroboration in terms of buyer's confirmation/affidavit or photographs of the property at time of sale which can demonstrate that what was sold was not just a plot of land but a plot of land along with construction thereon, assessee had failed to discharge the necessary onus placed on him in support of his claim of construction on property at the time of sale and cost of construction as so claimed has therefore rightly been rejected by lower authorities. Therefore, miscellaneous application filed by assessee was dismissed.

Relied:Ashok Kumar Dusad v. ITO [ITA No. 383/JP/2019, dt. 7-7-2020].

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

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