COMMISSIONER OF INCOME TAX Vs. MITHLESH KUMARI

JUDGEMENT

(1.) The following question has been referred to this Court by the Income-tax Appellate Tribunal, Delhi Bench 'A', (hereinafter referred to as the Tribunal) under section 66(1) of the Income-tax Act, 1922 (hereinafter referred to as the Act):-

(2.) The Income-tax Officer held that only the sum of Rs. 1,500.00 representing the brokerage for the sale of the land could be added to the purchase price of Rs. 95.000.00 and that the other items claimed by the assessee could not be added to the cost of the land. He, therefore, computed the capital gains at Rs. 53,500.00 The assessee preferred an appeal to the Appellate Assistant Commissioner against the order of the Income-tax Officer, but the Assistant Commissioner dismissed the appeal. The assessee thereupon preferred a second appeal to the Tribunal and the Tribunal held that the following items claimed by the assessee were also includable in the cost of the land :-

(3.) The Tribunal, therefore, determined the capital gains at Rs. 27,829.00 as disclosed by the assessee. The Revenue have obviously not disputed the finding of the Tribunal with regard to the penalty of Rs. 5,000.00 but are challenging the Tribunal's finding with regard to the other two items, namely, Interest-Rs. 16,878.00 and Ground rent-Rs. 3,793.00.