BHARATI SAPRU,J. - (1.) This appeal has been filed under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the Act) against the order of the Income Tax Appellate Tribunal, Delhi, Bench "H", New Delhi dated 8.5.2015 for the Assessment Year 2009-2010.
(2.) The appeal was admitted on the following questions of law:- "(A) Whether, in the facts and circumstances of the case and in law, the learned ITAT erred in allowing 50% of Rs. 4,52,530/- under the head 'expenditure over share transaction' which was disallowed by the AO ignoring the fact that no evidence was every submitted by the assessee during the entire course of assessment proceedings in support of the said expenditure? (B) Whether, in the facts and circumstances of the case and in law, the learned ITAT erred in law and fact in adopting the cost of acquisition of flat at Mumbai as on 01.04.1981 at Rs. 1,05,02,677/- against Rs. 10,00,000/- that had been adopted by the AO on the basis of gift deed on the basis of gift deed dated 10.12.1999 ignoring the fact that the donor at the time of gift to the assessee declared the value of flat at Rs. 10 lacs? (C) Whether, in the facts and circumstances of the case and in law, the learned ITAT erred in law and fact in affirming the indexed cost of improvement of the flat at Mumbai at Rs. 15,80,464/- ignoring the fact that the assessee failed to produce evidence relating to source of funds invested by the assessee for improvement of the said flat? (D) Whether, in the facts and circumstances of the case and in law, the learned ITAT erred in restricting the litigation expenses of Rs. 13 lacs to Rs. 6.5 lacs and allowing the amount of Rs. 6.5 lacs claimed by the assessee on account of brokerage expenses ignoring the fact that both these expenses were originally claimed by the assessee at the time of filing of return of income especially since no documentary evidence to this effect were ever produced by the assessee in support of these expenses?"
(3.) Briefly the facts giving rise to the present appeal are that the assessee's mother-in-law had purchased a residential flat at Mumbai in the year 1970 for consideration of Rs. 45,000/-. She gifted the same to the assessee on 10.12.1999 against a registered gift deed. In that gift deed the value of the flat was mentioned at Rs. 10,00,000/-, as on 1.4.1981. Also, the said flat became subject matter of a civil dispute between the assessee and a third party. It was carried up to the Supreme Court. Later, during the previous year relevant to the Assessment Year 2009-10 the assessee sold the aforesaid flat through registered sale deed for a total consideration of Rs. 6,50,00,000/-. For the purpose of computation of the capital gains, the assessee relied on the provision of Section 55(2)(b)(ii). She disclosed the value of the flat in question, as on 1.4.1981 at Rs. 1,05,02,677/- on the basis of a valuation report prepared and submitted by the Kapoor and Associate, an approved valuer.;