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Judgment
PER MANISH AGARWAL, A.M.:
The present appeal is filed by assessee against the order dated 31.10.2025 passed by Ld. Commissioner of Income Tax (A)/ADDL/JCIT(A)-6, Mumbai [“Ld. CIT(A)”] in Appeal No. NFAC/2022-23/10406427 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of rectification order dated 20.09.2024 passed u/s 154 of the Act pertaining to Assessment Year 2023-24.
At the time of hearing, Ld.AR submitted an adjournment application dated 05.05.2026 which is rejected and both the parties were heard on merits.
Brief facts of the case are that the assessee company has filed its return of income on 07.08.2023, declaring total income of INR 3,83,04,840/-. The return was processed u/s 143(1) at an income of INR 6,77,08,400/- wherein the claim of cost of improvement claimed out of sale consideration while computing Long Term Capital Gain (“LTCG”) declared under the head “Income from Capital Gain” was disallowed by Central Processing Centre (“CPC”).
Against the said order, assessee filed an appeal before Ld. CIT(A) who vide impugned order dated 31.10.2025, dismissed the appeal of the assessee.
Aggrieved by the order of Ld. CIT(A), assessee is in appeal before the Tribunal by taking various grounds of appeal mentioned in the appeal memo. As all the Grounds of appeal raised by the assessee are with respect to the denial of deduction towards cost of improvement of INR 2,94,03,553/- therefore, they are taken together for consideration.
Heard the contentions of both the parties at length and perused the material on record. In the instant case, the assessee has claimed deduction of the cost of improvement u/s 48 of the Act for the purpose of computing LTCG. The assessee has claimed cost of acquisition at INR 2,16,81,310/-, indexed cost of acquisition of INR 4,29,73,135/- and further claimed cost of improvement with indexation at INR 2,94,03,553/-. The deduction on account of cost of improvement was not allowed by the CPC in absence of specific details in the return of income filed. Even before Ld. CIT(A), the claim of the assessee is rejected for want of details/explanation/supporting evidences. Under these circumstances, in the larger interest of justice, we remit this issue back to the file of AO with the directions to examine the claim of the assessee with respect to cost of improvement and decide in accordance with law. The assessee is also directed to file all the necessary details in respect of claim of cost of improvement. Accordingly, all the Grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal filed by the assessee is allowed for statistical purposes.