T.G. Rangashamiah, Bangalore V. ITO (International Taxation), Bangalore

ITA 1134/BANG/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5564 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 06-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ETWA MUNDA CITIII
• Assessee Lawyers: RAMASUBRAMANIYAN
• Keywords: Condonation of delay; Capital Gains
• Section: 143(3); 195; 201

Judgement Text

PAGE 1 OF 4 ITA NO.1134/BANG/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH A BEFORE SHRI GEORGE GEORGE K, J.M. AND SHRI A MOHAN ALANKAMONY, A.M ITA NO.1134/BANG/2010 (ASSESSMENT YEAR 2005-06) SHRI T G RANGASHAMIAH, NO.861, 3 RD STAGE, 3 RD BLOCK, BASAVESHWARA NAGAR, BANGALORE-79. - APPELLANT VS THE INCOME TAX OFFICER, (INTERNATIONAL TAXATION), WARD-1(3), BANGALORE. - RESPONDENT APPELLANT BY : SHRI RAMASUBRAMANIYAN, C.A. RESPONDENT BY : SHRI ETWA MUNDA, CIT-III ORD ER PER GEORGE GEORGE K : THIS APPEAL INSTITUTED BY THE ASSESSEE IS DIRECTE D AGAINST THE ORDER OF LEARNED CIT(A)-IV, BANGALORE D ATED 11/08/2010. THE ASST. YEAR CONCERNED IS 2005-06. 2. THE ASSESSEE IS AN INDIVIDUAL. THE ASSESSEE A LONG WITH HIS SON AND DAUGHTER HAD ENTERED INTO AN AGREEMENT DATED 15.10.2004 FOR PURCHASE OF PROPERTY AT WEST OF CHORD ROAD WITH SRI K C RAJASHEKHARAIAH WHO WAS RESIDING AT NO.7, YENGO COURT, WATTLE GROVE, NSW 2173, SYDNEY, AUSTRALIA. THE ASSES SEE ALONG PAGE 2 OF 4 ITA NO.1134/BANG/2010 2 WITH HIS SON AND DAUGHTER ENTERED INTO AN ABSOLUTE DEED DATED 21.12.2004. AS PER THE ABSOLUTE SALE DEED, SRI K C RAJASHEKHARAIAH, THE VENDOR CAME DOWN TO IN DIA AND IS SAID TO BE RESIDING AT NO.341, 6 TH MAIN, LIG 1 ST STAGE, KHB COLONY, BANGALORE-79. AN ASSESSMENT U/S 143(3) OF THE ACT WAS MADE ON S RI K C RAJASHEKHARAIAH AND ORDER DATED 28.12.2007 RAIS ING DEMAND OF RS.8,74,215/- WAS PASSED. SRI K C RAJASHEKHARAIAH FILED AN APPEAL AGAINST THE ORDER WHICH WAS PARTLY ALLOWED. THE AO SERVED A NOTICE DATED 31.10.2008 U/S 201 O F THE ACT ON THE ASSESSEE, HIS SON AND DAUGHTER ON TH E GROUND THAT THEY HAVE NOT DEDUCTED TAX AT SOURCE U/S 195 OF THE ACT ON THE SALE CONSIDERATION OF RS.60 LAKHS PAID TO THE NON-R ESIDENT, SRI K C RAJASHEKHARAIAH. THE AO PASSED AN ORDER U/S 201 R. W.S. 195 ONLY ON THE ASSESSEE. HE DEMANDED LONG TERM CAPITAL GAINS TAX ON THE ENTIRE SALE CONSIDERATION. THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) DELAYED BY 123 DAYS, AS THE ASSESSEE WAS SUFFERING FRO M HEART DISEASE AND WAS ADVISED ABSOLUTE BED REST. THE CIT (A) DISMISSED THE APPEAL IN LIMINE BY REFUSING TO CONDONE THE DELA Y AND DID NOT DISPOSE OFF ANY OF THE GROUNDS ON MERITS. 3. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESS EE IS IN APPEAL BEFORE US. PAGE 3 OF 4 ITA NO.1134/BANG/2010 3 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ASSESSEE HAS FILED THE AP PEAL BEFORE THE CIT(A) WITH A DELAY OF MORE THAN 4 MONTHS. ALONG WI TH THE APPEAL, THE ASSESSEE HAD FILED PETITION FOR CONDONATION OF DELAY IN FILING THE APPEAL, ENCLOSING THEREWITH A DOCTORS CERTIFICATE DATED 30.6.2009, STATING THAT HE WAS SUFFERING FROM ISCHEMIC HEART D ISEASE AND WAS ADVISED TO TAKE BED REST. ON PERUSAL OF THE DOCTOR S CERTIFICATE, WE ARE OF THE VIEW THAT IT IS A GENUINE CASE AND TH E DELAY IN FILING THE APPEAL BEFORE THE CIT(A) IS TO BE CONDONED. IN THE INTEREST OF JUSTICE, WE CONDONE THE DELAY IN FILING THE APPEAL B EFORE THE CIT(A) AND DIRECT HIM TO DISPOSE OFF THE APPEAL ON MERITS. ACCORDINGLY, THE MATTER IS RESTORED TO THE FILE OF THE CIT(A). THE ASSESSEE SHALL NOT SEEK FURTHER ADJOURNMENT UNLESS IT IS ABS OLUTE NECESSITY. HE SHALL COOPERATE WITH THE FIRST APPELLATE AUTHORI TY FOR EXPEDITIOUS DISPOSAL OF THE MATTER AND FOR A PROPER FRAMING OF THE APPELLATE ORDER. 3. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED ON FRIDAY, THE 10 TH DAY OF JUNE, 2011 AT BANGALORE. SD/- SD/- (A MOHAN ALANKAMONY) (GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER COPY TO : 1. THE REVENUE 2. THE ASSESSEE 3. THE C IT CONCERNED. 4. THE CIT(A) CONCERNED. 5. DR 6. GF PAGE 4 OF 4 ITA NO.1134/BANG/2010 4 MSP/9/6. BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.