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

ITA 1244/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2603 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 19-04-2021
• Assessment Year: 2010-2011
• Appeal Filed On: 09-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: G MANIKYA PRASAD
• Keywords: Sale consideration of property below Jantri Value; Capital asset; Condonation of delay
• Section: 50C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 1244/HYD./2019 ASSESSMENT YEAR: 2010 - 11 SRI RAVINDRA REDDY KATTA VS. ITO, WARD 3 WARANGAL WARANGAL [PAN: APHPK9602E] (APPELLANT) (RESPONDENT) FOR ASSESSEE : SRI G. MANIKYA PRASAD, AR FOR REVENUE : SRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 19/04/2021 DATE OF PRONOUNCEMENT : 24/06/2021 O R D E R PER S.S. GODARA, J.M. THIS ASSESSEES APPEAL FOR A.Y. 2010 - 11 ARISES AGAINST THE CIT(A) - 3 HYDERABADS ORDER DATED 12.03.2019 PASSED IN CASE NO.10390/2017 - 18 INVOLVING PROCEEDINGS U/S 271(1)(C ) OF THE INCOME TAX ACT, 1961 [FOR SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. IT IS SEEN THAT THERE IS A DELAY OF 53 DAY S IN FILING ASESSEES INSTANT APPEAL. HE HAS FILED APPLICATION FOR CONDONATION OF DELAY EXPLAINING REASONS THAT THE SAME IS NEITHER INTENTIONAL NOR WILFUL BUT ON ACCOUNT OF CIRCUMSTANCES BEYOND CONTROL. WE QUOTE COLLECTOR LAND ACQUISITION VS MST.KATI JI & OTHERS, 1987 AIR 1353 (SC) AND UNIVERSITY OF DELHI VS UNION OF INDIA CIVIL APPEAL NO. 9488 & 9489/2019 DT. 17.12.2019, THAT SUCH A DELAY SUPPORTED BY COGENT REASONS DESERVES TO BE CONDONED SO AS TO MAKE WAY FOR THE CAUSE OF SUBSTANTIAL JUSTICE. WE A CCORDINGLY CONDONE THE DELAY AND PROCEED WITH THE CASE. 2. IT EMERGES AT THE OUTSET THAT BOTH THE LEARNED LOWER AUTHORITIES HAVE IMPOSED SEC.271(1)(C ) PENALTY AMOUNTING TO RS.2,49,368/ - PERTAINING TO QUANTUM LONG TERM CAPITAL GAIN ADDITION ON RS. 13,70,525/ - MADE AFTER INVOKING SEC.50C OF THE ACT IN ASSESSMENT ORDER DATED 18.7.2017. THE ASSESSING OFFICERS AS WELL AS CIT(A)S CASE THAT ASSESSEES ACT AND CONDUCT THROUGHOUT TO THIS EFFECT AMOUNTS TO CONCEALMENT OF PARTICULARS OF HIS TAXABLE INCOM E. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL CONTENTIONS AGAINST AND IN SUPPORT OF THE IMPUGNED SEC. 271(1)(C ) PENALTY. SUFFICE TO SAY, WE ARE OF THE OPINION THAT ONCE THE IMPUGNED ADDITION HAS BEEN MADE U/S 50C BY APPLYING DEEMING PROVISION THAT THE ACTUAL PRICE OF THE ASSESSEES CAPITAL ASSET WAS NOT ITS MARKET PRICE ON ACCOUNT OF THE STAMP PRICE CO NCERNED, IT OUGHT NOT TO BE HELD BY ANY STRETCH OF IMAGINATION THAT ASSESSEE HAD CONCEALED HIS TAXABLE INCOME TO THE CORRESPONDING EFFECT IN SUCH AN INSTANCE. HONBLE APEX COURT LANDMARK JUDGEMENT IN CIT VS. RELIANCE PETRO PRODUCTS LTD. 322 ITR 158 (SC ) HAS SETTLED THE LAW THAT EACH AND EVERY DISALLOWANCE/ADDITION MADE IN THE COURSE OF QUANTUM DOES NOT IPSO FACTO ATTRACT THE IMPUGNED PENAL MECHANISM. WE ADOPT THE SAME RATIO MUTATIS MUTANDIS AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED PENA LTY. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 24/06/2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT M EMBER JUDICIAL MEMBER DATED: 24 TH JUNE, 2021 *GMV COPY OF ORDER FORWARDED TO: 1. SRI RAVINDER REDDY KATTA, C/O M/S G.S. MADHAVA RAO AND COMPANY, C.AS, H.NO. 11 - 26 - 53, SUDHARAMA BUILDINGS, M.G.ROAD, WARANGAL, TELANG ANA 2. ITO, WARD 3, WARANGAL 3. ACIT, WARANGAL RANGE, WARANGAL 4 CIT(A) - 3, HYDERABAD 5 PR.CIT - 3, HYDERABAD . 6 D.R. ITAT HYDERABAD 7 GUARD FILE