Stamp Duty, Registration Charges and Society Transfer Fees Incurred by Seller as Per Agreement Are Allowable | ITAT
- Blog|News|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 3 April, 2024
Latest from Taxmann
Case Details: Kishore Bhagwandas Ramnani vs. Income Tax Officer - [2024] 161 taxmann.com 43 (Mumbai-Trib.)
Judiciary and Counsel Details
- Amit Shukla, Judicial Member & Amarjit Singh, Accountant Member
- Rahul Sarda for the Appellant.
- Anil Sant for the Respondent.
Facts of the Case
The assessee furnished its return of income by declaring long-term capital gains and income from other sources. During the year under consideration, the assessee shown long-term capital gain on the sale of immovable property and claimed deduction under section 54EC from such capital gains.
During the assessment proceedings, the Assessing Officer (AO) noticed that the assessee had claimed deduction of stamp duty, registration charges and society transfer fees out of the capital gain amount. Contending that the assessee failed to substantiate the expenses and failed to furnish any supporting document, the AO made additions to the assessee’s income.
On appeal, the Dispute Resolution Panel (DRP) dismissed the objection filed by the assessee.
Aggrieved by the order, the assessee filed an appeal before the Mumbai Tribunal.
ITAT Held
The Tribunal held that as per the terms and conditions of the sale agreement, the assessee was to bear the cost of stamp duty, registration charges and the society transfer fees. The assessee has, accordingly, paid stamp duty, registration charges, and society transfer fees. The assessee also referred to a copy of the sale agreement and a copy of the bank statement in support of his claim to make payment of aforesaid expenses.
It was found that the AO did not consider that the assessee incurred the expenses on stamp duty, registration charges and society transfer charges as per the terms and conditions of the agreement and evidence of payment as reflected in the copy of the bank statement.
Therefore, the AO was directed to allow the claim of the assessee after verification of the copy of the agreement and copy of bank statement filed by the assessee.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
