Case Law Details
Lakshminarayana Gupta Vs CIT(A) (ITAT Bangalore)
The solitary issue that is raised in this appeal is with regard to the disallowance of brokerage claim amounting to Rs.2,17,000/-. It is claimed that assessee had incurred brokerage of Rs. 3,10,000 regarding sale of a property.
The assessee has not produced any proof/evidences to substantiate that he had paid brokerage on the sale of property. Since there is no evidence on record, ITAT confirmed the disallowance of brokerage claim amounting to Rs. 2,17,000.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal at the instance of the assessee is directed against CIT(A)’s order dated 27.05.2022. The relevant assessment year is 2017-2018
2. The grounds raised read as follows:-
1. The order of the learned Appellate authority in so far as it is against the appellant, is opposed to law, equity, and weight of evidence, probabilities, jurisdiction, facts and circumstances of the case.
2. The Appellate authority has erred in law and on facts to disallow the expenditure of Rs.2,70,000/- incurred so sell the property.
3. The addition made to the income of the appellant is against the facts and circumstance of the case as such addition to income had been made without mentioning specific of I.T.Act.
4. The impugned order was made without giving the appellate reasonable opportunity to present their point of view, thus violating the procedural fairness.
5. The Appellate authority has failed to appreciate the explanation and supporting given by you Appellant in this regard.
6. It is respectfully submitted that we may be permitted to add, delete and /or put forward any other grounds and fact of appeal and other related points at the time of hearing.
3. The brief facts of the case are as follows:
The assessee is an individual. For the AY 2017-18, the return of income was filed on 30.01.2018 declaring total income of Rs. 40,48,400/-. The assessment was completed vide order dated 25.12.2019 u/s. 143(3) of the I.T.Act, 1961 assessing the total income at Rs.1,39,78,400/-.
4. Aggrieved the assessee preferred an appeal before the first appellate authority. The CIT(A) partly granted relief to the assessee. One of the issue adjudicated by the ld.CIT(A) was regarding the brokerage claim of Rs. 3,10,000/-. The ld.CIT(A) held that since assesee is unable to produce any proof as regards payment of brokerage, 70% of the same amounting to Rs.2,17,000/- is to be added to the income of the assessee for the year to be taxed under the long term capital gain. [This addition was enhancement made by ld.CIT(A)]
5. Aggrieved by restricting the claim of brokerage to the 30% of Rs.3,10,000/-. The assessee has preferred the present appeal before the Tribunal. The appeal was posted for hearing on 03.06.2022, 21.07.2022, 02.08.2022, 29.08.2022, 22/12/2022 and on 02.02.2023. On the hearing dates neither the Authorized Representative nor the assessee appeared. The assessee has not given power of attorney to any of the Authorized Representative. Notice for hearing on 02.02.2023 was served on assessee through ld.DR. Inspite of serve of notice through ld.DR, there was no representation by the assessee. Therefore, we felt that no useful purpose would be served by adjourning this case. Hence, we decided to adjudicate the issue raised in this appeal after hearing the ld.DR
6. We have heard the ld. DR and perused the material on record. The solitary issue that is raised in this appeal is with regard to the disallowance of brokerage claim amounting to Rs.2,17,000/-. It is claimed that assessee had incurred brokerage of Rs.3,10,000/- regarding sale of a property. The ld.CIT(A) has decided the issue by observing as under:-
“During the course of hearing before the undersigned, AR for the assessee was asked to substantiate the brokerage claim of Rs.3,10,000/-. The assessee was not able to submit any evidence in this regard. Considering the same, the brokerage claimed of Rs.3,10,000/- is disallowed. 70% of the same amounting to Rs.2,17,000/- is added to the income of the assessee for the year to be taxed under LTCG. This addition is also considered towards enhancement of income ordered. Penalty proceedings u/s. 271(1)(c) are also initiated for concealing the particulars of income with respect to this amount of Rs.2,17,000/-.”
7. The assessee has not produced any proof/evidences to substantiate that he had paid brokerage on the sale of property. Since there is no evidence on record, we confirmed the findings of the ld.CIT(A). It is ordered accordingly.
8. In the result, the appeal filed by the assessee is dismissed.
Order pronounced on this 02nd day of February, 2023.
