Boddupally Isac Chinnai, Warangal V. Income Tax Officer, Ward-3, Warangal

ITA 1277/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6184 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 08-04-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 14-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBRAMANYAM TOTA
• Assessee Lawyers: LAKSHMI THARANGINI S
• Keywords: Sale consideration of property below Jantri Value; Cost of acquisition
• Section: 50C; 22; 147; 148; 144

Judgement Text

ITA NO 1277 OF 2019 BODDUPALLY ISAC CHINNAI WARAN GAL PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.1277/HYD/2019 ASSESSMENT YEAR: 2011-12 SRI BODDUPALLY ISAC CHINNAI, WARANGAL PAN:ASVPB7421M VS. INCOME TAX OFFICER WARD 3 WARANGAL (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI LAKSHMI THARANGINI S REVENUE BY : SRI SUBRAMANYAM TOTA, DR DATE OF HEARING: 08/04/2021 DATE OF PRONOUNCEMENT: 22/04/2021 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y 2011-12 AGAIN ST THE ORDER OF THE CIT (A)- 3, HYDERABAD, DATED 9.5.2 019. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IN DIVIDUAL, HAD SOLD A HOUSE PROPERTY VIDE SALE DOCUMENT NO.151 5/2010 DATED 29.07.2010 FOR A SALE CONSIDERATION OF RS.20. 00 LAKHS WHILE THE MARKET VALUE OF THE AFORESAID PROPERTY AS PER T HE SUB-REGISTRAR DATA WAS RS.21,19,920/-. THE ASSESSING OFFICER RECE IVED THIS INFORMATION AND THEREFORE, WAS OF THE OPINION THAT THE PROVISIONS OF SECTION 50C OF THE I.T. ACT ARE APPLICABLE AND T HE CAPITAL GAIN THEREFROM IS CHARGEABLE TO TAX. THEREFORE, HE REOPE NED THE ASSESSMENT BY ISSUANCE OF A NOTICE U/S 148 OF THE A CT. HOWEVER, NONE APPEARED FOR THE ASSESSEE. THE ASSESSING OFFIC ER, THEREFORE, COMPLETED THE ASSESSMENT U/S 144 R.W.S. 147 OF THE ACT AND BROUGHT THE TOTAL CONSIDERATION OF RS.21,19,920/-TO TAX AS LONG TERM CAPITAL GAIN. ITA NO 1277 OF 2019 BODDUPALLY ISAC CHINNAI WARAN GAL PAGE 2 OF 3 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFO RE THE CIT (A) BUT WITH A DELAY OF 40 DAYS. THE CIT(A), OB SERVING THAT THE ASSESSEE HAS FAILED TO EXPLAIN THE REASONS FOR THE DELAY, REFUSED TO CONDONE THE DELAY AND ACCORDINGLY DISMISSED THE APP EAL THEREAFTER, WITHOUT CONSIDERING THE ASSESSEES CONT ENTIONS ON MERIT. THUS, AGGRIEVED BY THE ORDER OF THE CIT (A), THE ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LEARNED CIT(A) ERRED IN HOLDING THE DEL AY IN FILING THE APPEAL CANNOT BE CONDONED, WITHOUT ADJUD ICATING THE ISSUE ON MERITS. 2. ON THE FACT AND CIRCUMSTANCES OF THE CASE AS WEL L AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF INC OME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF ASSESSING OFFICER IN MAKING THE ENTIRE SALE CONSIDE RATION OF RS. 21,19,920/- AS 'LONG TERM CAPITAL GAIN' WITH OUT CONSIDERING THE INDEXED COST OF ACQUISITION OF INHE RITED PROPERTY, WHICH IS AGAINST THE PRINCIPLES OF NATURA L JUSTICE. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND U NDER THE LAW, THE LEARNED ASSESSING OFFICER ERRED BY ASS ESSING THE ENTIRE SALE CONSIDERATION IN THE HANDS OF THE A PPELLANT WITHOUT ASSESSING PROPORTIONATELY IN THE HANDS OF O THER TWO VENDORS AS PER THE SALE DEED DATED 29-07-2010. 4. THE APPELLANT MAY ADD OR ALTER OR AMEND OR MODIF Y OR SUBSTITUTE OR DELETE AND/ OR RESCIND ALL OR ANY OF THE GROUNDS OF APPEAL AT ANY TIME BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. PRAYER OF RELIEF 'THE APPELLANT MOST RESPECTFULLY PRAYS THAT THIS HO N'BLE TRIBUNAL MAY BE PLEASED TO PASS JUDGMENT IN FAVOUR OF APPELLANT: A. CONSIDER THE INDEXED COST OF ACQUISITION WHILE CALCULATING LONG TERM CAPITAL GAIN. B. TO GRANT SUCH OTHER RELIEF OR RELIEFS THAT ARE D EEM FIT AND PROPER IN THE INTEREST OF JUSTICE. 4. I FIND THAT BOTH THE ASSESSMENT ORDER AS WELL AS THE CIT(A)S ORDERS ARE EX-PARTE THE ASSESSEE, AND THE ASSESSING ITA NO 1277 OF 2019 BODDUPALLY ISAC CHINNAI WARAN GAL PAGE 3 OF 3 OFFICER WHILE COMPUTING THE LTCG HAS NOT ALLOWED TH E INDEXED COST OF ACQUISITION AT ALL. THEREFORE, IN THE INTER EST OF JUSTICE AND TO GIVE THE ASSESSEE ANOTHER OPPORTUNITY, I DEEM IT FIT AND PROPER TO CONDONE THE DELAY OF 40 DAYS IN FILING OF THE AP PEAL BEFORE THE CIT (A) AND REMAND THE ISSUE TO THE FILE OF THE ASS ESSING OFFICER WITH A DIRECTION TO ALLOW THE INDEXED COST OF ACQUI SITION WHILE COMPUTING THE CAPITAL GAIN AND RE-COMPUTE THE INCOM E OF THE ASSESSEE ACCORDING TO HIS SHARE IN THE PROPERTY DEN OVO IN ACCORDANCE WITH LAW. 5. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND APRIL, 2021. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 22 ND APRIL, 2021. VINODAN/SPS COPY TO: S.NO AD DRESSES 1 SRI BODDUPALLY ISAC CHINNAI, H.NO.16 - 12 - 17 LABOUR COLONY , LAXMIPUR (V) WARANGAL 506013 2 INCOME TAX OFFICER WARD 3 WARANGAL 3 CIT (A) - 3, HYDERABAD 4 PR. CIT 3, HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE BY ORDER