The Income Tax Appellate Tribunal (ITAT), Pune bench has held that the Income Tax deduction cannot be allowed to the payment of brokerage at the time of purchasing the property on the ground that the assessee failed to submit the proof of payment in support of the claim.
ITAT Vice President Mr. R S Syal was considering an appeal by an individual challenging an order of the income tax department not allowing deduction towards brokerage of Rs.80,000/- paid by him at the time of purchase of the property in the computation of capital gain.
After considering the arguments from both sides, the Tribunal noted that the claim of the assessee is that she paid a sum of Rs.80,000/- as brokerage at the time of purchase of property, which was sold during the assessment year under consideration.
Upholding the order of the lower authorities, the Tribunal held that “despite repeated requests, the assessee could not furnish any evidence of the payment of the brokerage. The Wealth-tax return for the assessment year 2001-02 including the value of the flat at Vrundali, Bhandarkar Road, Pune is no substitute to the evidence of payment when called for. Neither any receipt of the payee nor any evidence of payment through banking channel nor otherwise has come up either before the lower authorities or the Tribunal. In the given circumstances, I am satisfied that the ld. CIT(A) was justified in not allowing deduction towards payment of such brokerage in the computation of capital gain.”
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