Ravinder Reddy Katta , Warangal V. Income Tax Officer, Ward-3, Warangal

ITA 110/Hyd/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3780 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 26-11-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 29-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J DIVYA
• Assessee Lawyers: G MANIKYA PRASAD
• Keywords: Sale consideration of property below Jantri Value; Additional evidence; Set aside
• Section: 50C; 148; 54

Judgement Text

ITA NO 110 OF 2019 RAVINDER REDDY KATTA WARANGAL. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.110/HYD/2019 ASSESSMENT YEAR: 2010-11 SHRI RAVINDER REDDY KATTA WARANGAL PAN:APHPK9602E VS. INCOME TAX OFFICER WARD-3 WARANGAL (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI G. MANIKYA PRASAD REVENUE BY : SMT. K.J. DIVYA, DR DATE OF HEARING: 26/11/2019 DATE OF PRONOUNCEMENT: 29/11/2019 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2010-11 AGAIN ST THE ORDER OF THE CIT (A)-3, HYDERABAD, DATED 15.11. 2018. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL. THE AO RECEIVED INFORMATION THAT THE AS SESSEE HAS SOLD A HOUSE PROPERTY ON 2.6.2009 FOR A SALE CONSID ERATION OF RS.10,92,000/- WHILE THE MARKET VALUE OF THE PROPER TY AS PER THE SRO DATA IS RS.16,09,500/-. THEREFORE, HE WAS OF TH E OPINION THAT THE PROVISIONS OF SECTION 50C OF THE ACT, ARE APPLI CABLE AND THE CAPITAL GAIN WAS CHARGEABLE TO TAX AND SINCE IT HAS ESCAPED THE ASSESSMENT, HE ISSUED A NOTICE U/S 148 OF THE I.T. ACT. HOWEVER, THE ASSESSEE DID NOT RESPOND TO THE NOTICE AND THER EFORE, THE AO COMPLETED THE ASSESSMENT BASED ON THE MATERIAL AVAI LABLE BEFORE ITA NO 110 OF 2019 RAVINDER REDDY KATTA WARANGAL. PAGE 2 OF 4 HIM AND BROUGHT A SUM OF RS.13,70,525/- TO TAX. AGG RIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) ALO NG WITH ADDITIONAL EVIDENCE AND ALSO RAISED AN ADDITIONAL G ROUND. THE CIT (A) HOWEVER, DID NOT ADMIT THE ADDITIONAL GROUND FI LED BY THE ASSESSEE HOLDING IT TO BE AN AFTERTHOUGHT AND SEEKI NG REGULARIZATION OF A BELATEDLY FILED RETURN OF INCOM E. HE, THEREFORE, DISMISSED THE ASSESSEES APPEAL AND THE ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS OF APPEAL: 1 . THE APPELLANT SUBMITS THAT THE LEARNED C.I.T (APPEALS) FAILED IN NOT CONSIDERING THE ADDITIONAL GROUNDS OF APPEAL IN PROPER PERSPECTIVE. 2. THE APPELLANT SUBMITS THAT THE RETURN OF INCOME FILED IN RESPONSE TO THE LETTER/NOTICE AND THE ADDI TIONAL GROUNDS FILED UNDER RULE 46 A OF THE INCOME TAX RUL ES OUGHT TO HAVE BEEN CONSIDERED BY THE LEARNED C.I.T. (APPEALS). 3. THE LEARNED C.IT. APPEALS ERRED IN STATING THAT THE RETURN FILED IS A BELATED RETURN AND NOT FILED IN RESPONSE TO FORMAL NOTICE WHICH IS NOT TRUE AS PER RECORD. 4. THE APPELLANT SUBMITS THAT THE ASSESSING OFFICER FAILED TO TAKE COGNIZANCE OF THE RETURN OF INCOME F ILED WHICH IS ON THE RECORD OF THE DEPARTMENT BEFORE COMPLETING THE ASSESSMENT U/S 144. 5. THE APPELLANT PRAYS THAT THE ASSESSING OFFICER M AY BE DIRECTED TO CONSIDER THE RETURN OF INCOME FILED IN RESPONSE TO THE FORMAL LETTER IN COMPLETING THE ASSESSMENT. 6. THE APPELLANT SUBMITS THAT THE COURTS HAVE HELD THE CORRECT INCOME SHOULD BE TAXED AND TECHNICALITIES SHOULD NOT BE HINDRANCE TO ALLOW RELIEF TO THE TAX PAYER. 7. THE APPELLANT SUBMITS THAT IN ASSESSMENT U/ S T4 4 ALL THE INFORMATION HAS TO BE TAKEN INTO CONSIDERAT ION AND ASSESSING OFFICER FAILED TO TAKE THE INFORMATION/RETURN WITH DEPARTMENT FILED IN RESPONS E TO THE NOTICE. 8. THE APPELLANT ON THE GROUNDS PRAYED ABOVE OR ANY OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEAR ING ITA NO 110 OF 2019 RAVINDER REDDY KATTA WARANGAL. PAGE 3 OF 4 PRAYS TO GRANT EXEMPTION CLAIMED U/S 54 OF THE I.T. ACT CONSIDERING THE RETURN OF INCOME FILED BY THE APPELLANT. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT, THOUGH HE HAD FILED A BELATED RETURN, DUE TO ILL HE ALTH, HE COULD NOT ATTEND TO THE NOTICE OF THE AO AND FURNISH THE REQUISITE INFORMATION. HE SUBMITTED THAT THE ASSESSEE WAS ELI GIBLE FOR EXEMPTION OF THE CAPITAL GAIN U/S 54 OF THE ACT AND ALL SUCH EVIDENCE WAS FILED BEFORE THE CIT (A), BUT WITHOUT CONSIDERING THE MERITS OF THE ASSESSEES CLAIM, HE HAS DISMISSED TH E ASSESSEES APPEAL AND THEREFORE, PRAYED FOR REMAND OF THE ISSU E TO THE FILE OF THE AO/CIT (A). 4. THE LEARNED DR, HOWEVER, SUBMITTED THAT THE ASSE SSEE FAILED TO APPEAR BEFORE THE AUTHORITIES BELOW AND T HE RETURN FILED BY THE ASSESSEE IS BELATED AND THEREFORE, THE CLAIM S MADE THEREIN CANNOT BE CONSIDERED. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE ASSESSEE COULD NOT APPE AR BEFORE THE AO FOR THE REASONS OF ILL HEALTH AND BEFORE THE CIT (A) THE ASSESSEE HAS FILED ALL THE RELEVANT DETAILS. CONSIDERING THE ASSESSEES CONTENTION THAT HE HAS A CASE AND HE HAS A STRONG P OINT ON MERITS AND THAT HE WAS ELIGIBLE FOR EXEMPTION FROM CAPITAL GAIN TAX U/S 54 OF THE ACT AND IN THE INTEREST OF JUSTICE OF ONL Y, THE ORDER OF THE CIT (A) IS SET ASIDE AND THE MATTER IS REMANDED TO THE FILE OF THE AO WITH A DIRECTION TO CONSIDER THE CLAIMS MADE BY THE ASSESSEE IN THE RETURN OF INCOME FILED BY THE ASSESSEE AND A LSO THE CLAIM OF EXEMPTION U/S 54 OF THE I.T. ACT. ITA NO 110 OF 2019 RAVINDER REDDY KATTA WARANGAL. PAGE 4 OF 4 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH NOVEMBER, 2019. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 29 TH NOVEMBER, 2019. VINODAN/SPS COPY TO: 1 SHRI RAVINDER REDDY KATTA, C/O M/S.GS MADHAVA RAO & CO. C.AS, H.NO.11-26-53, SUDHARMA BUILDINGS, MG ROAD, W ARANGAL 2 ITO WARD-3 INCOME TAX OFFICE, STATION ROAD, WARAN GAL 3 CIT (A)-3 HYDERABAD 4 PR. CIT 3 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER