M/s. Meerams Overseas Pvt. Ltd. vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, M/s. Meerams Overseas Pvt. Ltd., sold a property on 07.02.2015 for Rs.1,25,00,000. The property was purchased on 21.06.2004 for Rs.25,97,466. The assessee claimed an indexed cost of acquisition of Rs.58,49,710 and a further cost of improvement of Rs.68,68,660 in the year 2008-09, resulting in an indexed cost of improvement of Rs.1,27,57,769. The assessee showed a resultant loss of Rs.61,07,471. The Assessing Officer (AO) disallowed the cost of improvement due to lack of proof, adding Rs.66,50,290 to the assessee's tax liability. The assessee appealed this decision, but the Commissioner of Income Tax (Appeals) (CIT(A)) dismissed the appeal due to the assessee's failure to respond. The assessee then filed an appeal with the Tribunal, which was initially deemed time-barred by 16 days but was later condoned.…

Legal Issues

• 1. Whether the delay of 16 days in filing the appeal before the Tribunal should be condoned?
• 2. Whether the cost of improvement claimed by the assessee should be disallowed for want of proof?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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