A notarized sale agreement is valid evidence in property transactions, but lack of corroborative evidence can lead to denial of claims regarding capital gains.

ORDER

PER: RATHOD KAMLESH JAYANTBHAI, AM This appeal filed by the assessee is directed against the order of learned National Faceless Appeal Centre, Delhi[ for short CIT(A) ]dated 16.01.2025 for the assessment year 2010-11 raising therein following grounds of appeal.

‘’I am holder of power of attorney for the property (Property details: Plot No.48, Narayanpuri-B, Jhotwara, Jaipur Rajasthan 302 012) which has been sold. During the assessment year 2010-11, he sold an immovable property worth Rs.13,00,000/-. During the year, the assessee had sold his house property. The assessee had incurred no capital gain from sale of the house property. The computation of the capital gain of the house is as follows:

(a) Full value of consideration (date of sale 06-10-2009: - Rs.13,00,000/-

(b) Cost of acquisition (date of purchase 12-01-2006):- with indexed cost ofRs.13,36,483/- (actual purchase cost 1051000*632/497

(c) Long term Capital Loss: 36,483/- (a – b).

From the above calculation we can understand that the taxpayer has incurred long term capital loss during the assessment year 2010-11. The loss does not give rise to any tax liability. So from the above,we can see that the taxpayer has no long term capital gain, on which no tax is payable.’’

2.1 Apropos ground of appeal, it is noticed that the ld. CIT(A) has partly allowed the appeal of the assessee by observing as under:-

‘’6.2 I have perused the assessment order, grounds of appeal, submission of the appellant and remand report submitted by the appellant carefully. I find that ignorance of law cannot be accepted as excuse against the liability to pay due taxes. I find from the assessment order and remand report that the land under consideration was originally purchased by Mr. Mohammad Sharif which was sold on 6-10-2009 by the appellant as power of attorney holder. However, the appellant could not prove that the sale consideration was actually paid to Mr. Mohammad Shaif, hence the AO concluded that the property was purchased by the appellant under the guise of power of attorney, hence the AO taxed the entire sale consideration as long term capital gain in the hands of the appellant. During remand proceedings also, the appellant could not prove his claim. After submission of remand report, the appellant has changed his version and admitted that he had purchased the said landin 2006 for Rs.10,51,000/- and submitted notorized copy of purchase deed dated 12-01-2006. However, the appellant has not proved the genuineness of said purchase deed since the same is not registered before Govt. authorities and the claim of purchase consideration paid of Rs.10,51,000/- is also not proved with evidence since the payment is claimed to have been in cash. On 30-12-2024, the appellant has submitted the notorized affidavit of the seller Mohammand Sharif in support of the consideration of Rs.10,51,000/-. However, I find that the affidavit is not supported by any corroborative evidence. Hence, the same cannot be accepted as evidence. From the above facts, I find the appellant has changed the version every time and failed to produce supporting evidence to prove his claim. However, I find that the property was purchased by Mr. Mohammad Sharif for Rs.4,00,000/-, hence the benefit of indexed cost of acquisition from 2008 i.e. date of registry of power of attorney is allowed to the appellant. The AO, therefore, directed to recalculate the long term capital gain accordingly after allowing the benefit of indexed cost of acquisition on Rs.4,00,000/-.Thus the ground raised by the appellant is partly allowed.

7. In the result, the appellant is partly allowed.’’

2.2 During the course of hearing, the ld. AR of the assessee submitted that there is no capital gain as such and the assessee is not required to pay tax for which he has filed following detailed submission before the Bench.

‘’I hereby submit reply and appeal ground, I am holder of the power of attorney for the property (property details Plot no. 48, Narayanpuri-B, Jhotwa