Surat Trade and Mercantile Limited Vs PCIT Surat 1 & Anr. (Gujarat High Court)
Gujarat High Court held that once indexed renovation expense of co-owner accepted, the assessee is not required to produce any documents to prove his share of indexed renovation expense. Accordingly, allowance should be granted even without proof.
Facts- It is the case of the petitioner that the person, who was responsible for filing return of income, forgot to claim ‘Long Term Capital Loss’ arising on account of extinguishment of shares of Garden Silk Mills Ltd which were acquired by the petitioner since 1994. According to the petitioner, Fair Value of the investment in 4,80,878 shares of Garden Silk Mills Ltd at the commencement of the year under consideration was Rs. 25.25 lakhs which was reduced to Nil at the end of the year under consideration on account of the order passed by the NCLT and corresponding adjustments were made in relation to such investment in the books of accounts.
The petitioner, upon realizing that the legitimately allowable claim/carried forward was left out to be claimed in the return of income for the year under consideration, filed application u/s. 264 of the Act before respondent No.1 but by that time, the intimation u/s. 143(1) of the Act dated 22.11.2022 was already issued whereby, refund due to the petitioner was determined at Rs. 18,50,310/-.
