Durdana Khatoon, Hyderabad V. Assistant Commissioner of Income Tax, Circle-8(1)., Hyderabad

ITA 1096/Hyd/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0993 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 17-06-2021
• Assessment Year: 2009-2010
• Appeal Filed On: 27-06-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Capital asset; Ignorance of law; Capital Gains
• Section: 143(3); 54F; 54

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH B HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 1096 /HYD./201 7 A .Y : 20 09 - 10 SMT. DURDANA KHATOON VS. A CIT, HYDERABAD CIRCLE 6 (1) HYDERABAD [PAN: AGMPK8547N ] (APPELLANT) (RESPONDENT) FOR ASSESSEE: SHRI P. MURALI MOHANA RAO, C.A. FOR REVENUE: S RI R OHIT MUJUMDAR , D.R. DATE OF HEARING : 17/06/ 2021 DATE OF PRONOUNCEMENT : 12 /0 7 /2021 O R D E R PER S.S. GODARA, J.M. TH IS ASSESSEES APPEAL FOR A.Y. 20 09 - 10 A RISE S AGAINST THE CIT( A ) - 1, HYDERABADS ORDER DATED 28..02..2017 PASSED IN CASE NO. 229 / 20 14 - 15, INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 [ IN SHORT THE ACT ]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE A SSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL IN LIGHT OF HER MAIN GROUNDS NO. 1 TO 7 CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWING HER SEC . 54F DEDUCTION CLAIM OF RS . 22,27,524/ - IN THE COURSE OF ASSESSMENT FRAMED ON 28 .12.2011 AND ITA NO 1096/HYD/2017 AY: 2009 - 10 SMT. DURDANA KHATOON 2 UPHELD IN THE CI(T(A)S ORDER. A PERUSAL OF THE INSTANT CASE FILE FURTHER SUGGESTS THAT THE ASSESSEE HAS ALSO FILED HER PETITION DATED 18 . 2.2021 INTER ALIA PLEADINGS 8 TH TO 12 TH SUBSTANTIVE GROUNDS AS WELL. HER CASE IS THAT SHE IS RATHER ENTITLED FOR SEC.54F EDUCTION FOR HAVING SOLD HER RESIDENTIAL HOUSE PROPERTY DURING THE RELEVANT PY GIVING RAISE TO LONG TERM CAPITAL GAINS WHICH STAND RE - INVESTED IN YET ANOTHER SIMILAR NATURE OF CAPITAL ASSET . SHE HAS ALSO QUOTED THE CBDTS C IRCULAR I SSUED WAY BACK ON 11.04.1955 T HAT THE FIELD AUTHORITIES SHOULD RECOVER ONLY LEGITIMATE INCOME TAX TH A N TAKING ADVANTAGE A TAX PAYERS IGNORANCE OF LAW. 3. THE REVENUE HAS VEHEMENTLY OPPOSED ADMISSION OF ASSESSEES FOREGOING ADDITIONAL SUBSTANTIVE GROUN DS THAT THE SAME TEND TO GIVE ALTOGETHER A NEW TEXTURE TO HER ALREADY PLEADED GRIEVANCE OF SEC.54F DEDUCTION. 4. WE FIND NO MERIT IN REVENUES FOREGOING TECHNICAL STAND. THIS TRIBUNAL S SPECIAL BENCH IN AL L C ARGO G LOBAL L OGISTICS LTD. ( 2012 ) 137 ITD 26 (MUM), AFTER TAKING INTO CONSIDERATION HONBLE A PEX COURTS LANDMARK JUDGEMENT IN N ATIONAL THERMAL POWER CO. LIMITED VS CIT (1998) 229 ITR 383 (SC) , HOLDS THAT WE CAN VERY WELL ENTERTAIN SUCH AN ADDITIONAL GROUND RAISING A LEGAL ISSUE SO TO DETERMINE C ORRECT TAX LIABILITY OF AN ASSESSEE PROVIDED ALL THE RELEVANT FACTS ARE ON RECORD. L EARNED DR FAILS TO DISPUTE THAT WHATEVER ARE THE NECESSARY PARTICULARS IN THE ASSESSEES ALREADY RAISED CLAIM OF SEC.54F DEDUCTION , APPL Y MUTAT I S MUTANDIS IN SEC . 54 R EL I EF AS WELL. 5. FACED WITH THIS SITUATION, WE UPHOLD BOTH THE LEARNED LOWER AUTHORITIES ACTION DISALLOWING THE ASSESSEES SEC.54F DEDUCTION CLAIM FOR THE REASON THAT SHE OWNED/POSSESSED MORE THAN ONE RESIDENTIAL PROPERTY WHICH F ORMED THE PRIMARY REASON FOR REJECTING THE SAME AND DIRECT THE ASSESSING OFFICER TO ADJUDICATE THE SAME IN LIGHT OF THE NECESSARY CONDITIONS STIPULATED IN SEC.54 OF THE ACT. THE ASSESSEE OR HER AUTHORISED REPRESENTATIVE SHALL APPEAR BEFORE THE ASSESSI NG OFFICER ON OR BEFORE 31 ST OCTOBER, 2021 IN CONSEQUENTIAL PROCEEDINGS TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING. ITA NO 1096/HYD/2017 AY: 2009 - 10 SMT. DURDANA KHATOON 3 THIS ASSESSEES APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. PRONOUNCED IN OPEN COURT ON 12 TH JULY, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 12 TH JULY, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. SMT. DURDANA KHATOON, C/O P. MURALI & CO, CHARTERED ACCOU NTANTS, 6 - 3 - 655/2/3, I FLOOR, SOMAJIGUDA, HYDE RABAD 500 0 82 , TELANGANA. 2. A CIT, CIRCLE 6 ( 1 ), HYDERABAD 3. ACIT, RANGE 6 , HYDERABAD. 4. CIT (A) - 9, HYDERABAD 5. PR.CIT - 9, HYDERABAD 6 . DR, ITAT, HYDERABAD. 7 . GUARD FILE.