Murugesan Chellappa, CHENNAI V. ITO Corporate Ward 3(4), CHENNAI

CO 48/CHNY/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 4895 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 10 month(s) 18 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 30-03-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 12-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Cost of acquisition; Difference of opinion; Change of opinion; Reassessment proceedings; Set aside
• Section: 263

Judgement Text

आयकर अपीलीय अिधकरण “डी” Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL“D” BENCH, CHENNAI BEFORE SHRI C.M. GARG, JM & SHRI ARUN KHODPIA, AM आयकर अपील सं./ITA No.656/Chny/2019 (िनधाŊरण वषŊ / Assessment Year : 2010-2011) The ITO, Corporate Ward-3(4), Chennai-600034 V s Shri Murugesan Chellappa, 10/38, Sarojini Street, T.Nagar, Chennai-600017 PAN No. : AAEPC 4591 L AND Cross Objection No.48/CHNY/2019 (Arising out of ITA No.656/CHNY/2019) (िनधाŊरण वषŊ / Assessment Year : 2010-2011) Shri Murugesan Chellappa, 10/38, Sarojini Street, T.Nagar, Chennai-600017 V s The ITO, Corporate Ward-3(4), Chennai-600034 PAN No. : AAEPC 4591 L (अपीलाथŎ /Appellant) .. (ŮȑथŎ / Respondent) राजˢ की ओर से /Revenue by : Shri G.Johnson, Addl.CIT िनधाŊįरती की ओर से /Assessee by : Shri G.Baskar, Advocate सुनवाई की तारीख / Date of Hearing : 23/02/2022 घोषणा की तारीख/Date of Pronouncement : 31/03/2022 आदेश / O R D E R Per Bench : This is an appeal filed by the revenue against the order of the CIT(A)-11, Chennai, dated 19.12.2018 for the assessment year 2010-2011. The assessee has also filed cross objection supporting the aforesaid order of CIT(A). ITA No.656/Chny/2019 & CO No.48/Chny/2019 2 2. The revenue in its appeal, has raised the sole issue that the CIT(A) has erred in holding the reassessment proceedings made by the AO u/s.147 is not valid. 3. Ld. DR before us submitted that the order passed by the CIT(A) is contrary to law holding therein that the reassessment proceedings was a change of opinion. Ld. DR drew our attention towards the relevant paras of the assessment order and submitted that when the assessee has claimed as interest expenses in the same years, it is not allowable while calculating the LTCG. Accordingly, the AO rightly made the reassessment u/s.147 of the Act. However, the CIT(A) has wrongly held the reassessment order as invalid on the ground of change of opinion, wherein there is no question of change of opinion arises. Therefore, ld. DR submitted that appeal of the revenue deserves to be allowed and order passed by the CIT(A) deserves to be set aside. 4. On the other hand, ld. AR of the assessee relied on the order of CIT(A) and submitted that the order passed by the CIT(A) is just and proper, which does not call for any interference. 5. We have heard rival submissions of the parties and perused the relevant material available on record. On careful perusal of the impugned order, we find that the CIT(A) while dealing with the issue has held that the AO has already examined and considered the facts ITA No.656/Chny/2019 & CO No.48/Chny/2019 3 in the original assessment proceedings and again reopening the assessment on the same set facts amounts to change of opinion and accordingly the CIT(A) allowed the appeal of the assessee holding the reassessment proceedings made by the AO is not valid. The observations of the CIT(A) in para 9 read as under :- 9. In the instant case, it is seen that the assessee had declared all the of capital gain including sale consideration, cost of acquisition, indexed cost of acquisition including interest and other components. The long term capital gain had been examined by the Assessing Officer in the original assessment order passed. The assessment order had also been monitored by the Joint Commissioner of Income Tax. Subsequently, the assessing officer has reopened the assessment on the same set of issues which had been examined by the Assessing Officer in the original assessment order. The incidence of taxation or otherwise had already been considered by the Hon'ble ITAT in the case of C. Rama Brahmam with respect to claiming the interest as a cost in LONG TERM CAPITAL GAINS computation. If the Assessing Officer had any different opinion other than the one taken by his predecessor, he could have referred the matter ix] s 263 of IT Act. Instead the Assessing Officer has reopened the assessment on the same set of facts and circumstances which had been the subject matter of examination by the Assessing Officer m the original assessment proceedings. In view of the same, I am compelled to come to the conclusion that there has been a change of opinion and reassessment proceedings do get vitiated on account of this change of opinion. Moreover, the Assessing Officer has not been able to bring any fresh evidence on record before concluding that the taxable income has escaped assessment. Under the circumstances, I am compelled to hold that the reassessment proceedings are not valid. The grounds 1 and 2 with respect to assumption of jurisdiction accepted. There is no need to adjudicate other grounds taken. 6. From the above observations of the CIT(A), we do not see any good reason to interfere with the same. Even the ld. DR did not bring any cogent reason to controvert the above findings of the CIT(A). Accordingly, we uphold the findings recorded by the CIT(A) and dismiss the appeal of the revenue. ITA No.656/Chny/2019 & CO No.48/Chny/2019 4 7. Since, we have dismissed the appeal of the revenue, therefore, the cross objection filed by the assessee, supporting the order of the CIT(A), has become infructous and the same is dismissed. 8. In the result, appeal of the revenue and cross objection filed by the assessee are dismissed. Order pronounced as per Rule 34(4) of the ITAT Rules,1963 on 31/03/ 2022. Sd/- (ARUN KHODPIA) Sd/- (C.M.GARG) लेखा सद˟ /ACCOUNTANT MEMBER Ɋाियक सद˟ / JUDICIAL MEMBER Chennai; िदनांक Dated 31/03/2022 Prakash Kumar Mishra, Sr.P.S.(on tour) आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant- 2. ŮȑथŎ / The Respondent- 3. आयकर आयुƅ(अपील) / The CIT(A), 4. आयकर आयुƅ / CIT 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, Chennai / DR, ITAT, Chennai 6. गाडŊ फाईल / Guard file.