Sap Seven Homes &Estates, Hyderabad V. ITO, Hyderabad

ITA 1269/HYD/2008

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66352 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-09-2011
• Assessment Year: 2000-2001
• Appeal Filed On: 11-07-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S J SAI
• Assessee Lawyers: S RAMA RAO
• Keywords: Reopening of assessment; Capital asset; Cost of acquisition

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER I.T.A. NO. 1269/HYD/2008 ASSESSMENT YEAR : 2000-01 M/S. SAPSEVEN HOMES & ESTATES, HYDERABAD PAN; ABFFS5745J V. THE INCOME TAX OFFICER WARD-10(4) HYDERABAD APPELLANT RESPONDENT APPELLANT BY: SRI S. RAMA RAO RESPONDENT BY: SRI Y.V.S.J. SAI DATE OF HEARING: 11.10.2012 DATE OF PRONOUNCEMENT: 11.10.2012 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE CIT(A)-VI, HYDERABAD DATED 15.4.2008 FOR ASS ESSMENT YEAR 2000-01. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS: (1) THE ORDER OF THE LEARNED CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. (2) THE LEARNED CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN INITIATING PROCEEDINGS U/S. 147 OF THE IT ACT WHEN THERE IS NO ESCAPEMENT OF INCOME. (3) THE LEARNED CIT(A) ERED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN HOLDING THAT CAPITAL GAIN IS CHARGEABLE ON THE SALE OF AGRICULTURAL LAND SITUATED BEYOND 8 KM FROM THE MUNICIPAL LIMITS. THE LEARNED CIT(A) ERRED IN HOLDING THAT THERE IS ANY GAIN ON TRANSFER OF A CAPITAL ASSET LIABLE TO B E TAXED UNDER THE HEAD 'CAPITAL GAINS'. (4) THE LEARNED CIT(A) ERRED IN CONFIRMING THE COMPUTATION OF CAPITAL GAIN MADE BY THE ASSESSING OFFICER AND ALSO ERRED IN CONFIRMING THE I.T.A. NO. 1269/HYD/2008 M/S. SAPSEVEN HOMES & ESTATES ========================= 2 SALE CONSIDERATION AT RS. 28,55,770 AND IN RESTRICTING THE COST OF ACQUISITION OF THE PROPERTY AT RS. 1,85,175. (5) THE LEARNED CIT(A) ERRED IN HOLDING THAT THE TRANSFER OF THE LAND TOOK PLACE DURING THE FINANCIAL YEARS RELEVANT FIR THE ASSESSMENT YEARS 2000-01 AND 2002-03. 3. AT THE OUTSET THE AR ARGUED THE GROUND THAT REOPENI NG OF ASSESSMENT IS BAD IN LAW AS THERE IS NO ESCAPEMENT OF INCOME. 4. WE HAVE HEARD BOTH THE PARTIES. THE ASSESSEE HAS R AISED THE GROUND RELATING TO REOPENING OF ASSESSMENT BEFO RE THE CIT(A) WHICH READS AS FOLLOWS: (1) ....... (2) THE ASSESSING OFFICER ERRED IN INITIATING PROCEEDINGS U/S. 147 OF THE INCOME-TAX ACT AS THERE IS NO ESCAPEMENT OF INCOME CONSIDERING THAT THERE WAS NO CAPITAL GAIN ON THE AGRICULTURAL LAND SITUATED BEYOND THE MUNICIPAL LIMITS. 5. HOWEVER, THE CIT(A) NOT ADJUDICATED THIS GROUND AND DECIDED THE ISSUE RAISED BY THE ASSESSEE ON MERIT O F THE ADDITION MADE BY THE ASSESSING OFFICER. IN OUR OPINION, IT IS APPROPRIATE TO DECIDE THE LEGAL ISSUE RELATING TO REOPENING OF ASSESSMENT BEFORE TRAVELLING TO MERIT OF THE ADDITION MADE BY THE ASSESSING OFFICER. ACCORDINGLY, WE REMIT THE ISSUE RELATING TO REOPENING OF ASSESSMENT TO THE FILE OF THE CIT(A) TO DECIDE THER EUPON, THEN IF IT IS NECESSARY HE SHALL TAKE UP THE OTHER GROUND R ELATING TO MERIT OF THE ADDITION MADE BY THE ASSESSING OFFICER . 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH OCTOBER, 2012. SD/- ( ASHA VIJAYARAGHAVAN ) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 11 TH OCTOBER, 2012 TPRAO I.T.A. NO. 1269/HYD/2008 M/S. SAPSEVEN HOMES & ESTATES ========================= 3 COPY FORWARDED TO: 1. M/S. SAPSEVEN HOMES & ESTATES, C/O. SRI S. RAMA RAO, ADVOCATE, FLAT NO. 103, H. NO. 3-6-542/4, HIMAYATHNAGAR, HYDE RABAD-29. 2. THE INCOME TAX OFFICER, WARD-10(4), HYDERABAD. 3. THE CIT(A)-VI, HYDERABAD. 4. THE CIT-V, HYDERABAD. 5. THE DR A BENCH, ITAT, HYDERABAD