B N PINTO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) PURSUANT to the order of this court in C.P. No. 54 of 1969, dated July 15, 1970, the Income-tax Appellate Tribunal, Bangalore Bench, has referred the following question of law arising out of its order in I.T.A. No. 14800(?) of 1964-65, for the opinion of this court :

(2.) THE Income-tax Officer did not accept the loss claimed under capital gains. THEre was no dispute in regard to the total consideration under the release deed, viz., Rs. 5,76,582. During the course of the assessment proceedings, the assessee in her letter dated January 28, 1964, gave a break-up of this consideration amount and one of the items was a sum of Rs. 41,517 which was stated to be "lawyer's fees and travelling expenses and damages for mental worry and suffering on account of wrongful withholding and detention of my property". THE Income-tax Officer did not accept the explanation in this behalf and also in regard to certain other items. He noticed that the release deed itself did not specify any amount being paid towards such expenses or damages and no such explanation had been given in the estate duty proceedings and at earlier stages in the proceedings and the assessee was taking inconsistent stands.

(3.) ON further appeal before the Tribunal, the disallowance was upheld. It held that there was nothing in the release deed to show that this sum was paid in reimbursement of lawyer's fees, etc., and the exact amount of the lawyer's fees and travelling expenses were not known. It concluded : "In the absence of evidence that the total consideration paid to the assessee was also in part reimbursement of the expenses incurred by the assessee, we are unable to interfere."