Jitendra Nathubhai Katargamwala Vs ITO (ITAT Surat)
ITAT Surat held that in absence of any corroborative evidence with regard to payment of amount mentioned in sauda chitti, assessee is not entitled to claim enhanced cost of acquisition and hence appeal of the assessee dismissed.
Facts- During the assessment, AO noted the assessee has shown capital gains on sale of property. AO noted that assessee has sold immovable property by showing sale consideration at Rs.4.91 crores on 30.03.2015. The assessee was having 1/6th share of the property. As per AO, the assessee has suppressed capital gain of Rs. 35,83,472/-. Notably, assessee claimed that in his case in a search action a sauda chitthi was found wherein it was narrated that assessee has paid Rs.26,44,250/- over and above the declared amount on the sale deed at the time of acquisition of property. Therefore, assessee is to be allowed relief to that extent while computing index cost of acquisition for the purpose of long-term capital gains. Such reply of the assessee was not accepted by AO by taking view that assessee failed to prove such amount of sauda chitthi was offered for taxation in previous return of income. Thus, such benefit cannot be granted to the assessee. Accordingly, AO added difference amount of capital gains of Rs.35,83,472/-to the total income of assessee.
