Ranjana Sambhaji Sorte, Pune V. Income-tax Officer, Ward - 2 (3), Pune

ITA 1156/PUN/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 0205 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 25-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital asset; Date of conversion; Capital Gains
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER Sl. No. ITA No. Name of Appellant Name of Respondent Asst. Year 1 1152/PUN/2019 Smt. Shrushti U. Mulik, S.No.66/1, Sangamwadi, Khadki, Pune- 411003. PAN : BGAPS3329D ITO, Ward-2(3), Pune. 2008-09 2 1153/PUN/2019 Sagar S. Sorte, S.No.66/1, Sangamwadi, Khadki, Pune- 411003. PAN : BGAPS3328C ITO, Ward-2(3), Pune. 2008-09 3 1154/PUN/2019 Akash S. Sorte, S.No.66/1, Sangamwadi, Khadki, Pune- 411003. PAN : BGAPS3331K ITO, Ward-2(3), Pune. 2008-09 4 1155/PUN/2019 Akash S. Sorte, L/h of Late Smt. Chandrabhaga N. Sorte, S.No.66/1, Sangamwadi, Khadki, Pune- 411003. PAN : BGHPS5367L ITO, Ward-2(3), Pune. 2008-09 5 1156/PUN/2019 Ranjana Sambhaji Sorte, S.No.66/1, Sangamwadi, Khadki, Pune- 411003. PAN : BGAPS3333M ITO, Ward-2(3), Pune. 2008-09 ITA Nos.1152 to 1156/PUN/2019 2 आदेश / ORDER PER S. S. GODARA, JM: These five assessees’ as many instant appeals ITA Nos.1152 to 1156/PUN/2019; all for assessment year 2008-09, arise against the CIT(A)-3, Pune’s common order dated 07.06.2019 passed in case nos.422 to 423, 425 to 426 and 430/2015-16; respectively, in proceedings u/s 143(3) of the Income Tax Act, 1961; in short “the Act”. Heard all five assessees and the Revenue. Case files perused. 2. It emerges at the outset that these five assessees’ identical sole substantive grievance challenges correctness of both the learned lower authorities’ action assessing long term capital gains of Rs.21,02,627/- (in “lead” ITA No.1152/PUN/2019) and varying sum(s) in other four appeals; as the case may be, after holding them to have transferred the corresponding capital asset in Village Yerwada, Sangamwadi, Pune. Mr. Jasnani sought to highlight the fact that all these assessees were co-owners in the foregoing asset who had transferred the same by way of the joint development agreement in issue dated 31.12.2007 falling in the relevant previous Assessee by : Smt. Deepa Khare Revenue by : Shri M. G. Jasnani Date of hearing : 26.07.2022 Date of pronouncement : 27.07.2022 ITA Nos.1152 to 1156/PUN/2019 3 year and therefore, the learned lower authorities have rightly assessed the consequential capital gains in their respective hands after applying section 2(47)(v) of the Act. 3. I find no merit in the Revenue’s foregoing arguments. It is noted with the able assistance coming from the assessees’ side that these co-vendors as well as the vendee had inserted clause (4) in the above stated joint development agreement that the effective date thereof would read “this agreement will become effective only on the date of conversion of the zone in respect of the said land from Agricultural to Residential, which is the pre-requisite condition of this agreement and hence is the Essence of the Agreement. Upon the conversion of zone of said land from Agricultural to Residential, this agreement will automatically become effective without requiring any further act from the parties herein”. It is made clear that there is no material at all in the case files to conclude that the assessees’ land in issue stood converted from agricultural to residential in the relevant previous year so as to make the agreement itself effective. I therefore conclude in these peculiar facts and circumstances that both the learned lower authorities have erred in law and on facts in holding these assessees to have transferred their respective shares in the foregoing capital asset by invoking section 2(47)(v) of the Act. The impugned capital gains addition in all ITA Nos.1152 to 1156/PUN/2019 4 these cases stands deleted for this precise reason alone. Ordered accordingly. These assessees’ instant identical sole substantive ground succeeds therefore. All other pleadings in these five cases stand rendered academic. 4. These assessees’ five respective appeals are allowed in above terms. A copy of this common order be placed in the respective case files. Order pronounced on this 27 th day of July, 2022. Sd/- (S. S. GODARA) JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 27 th July, 2022. Sujeet (DOC) आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-3, Pune. 4. The Pr. CIT-2, Pune. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.