Somasundaram Vijaya Kumar , Hyderabad V. Income Tax Officer, Ward-14(1), Hyderabad

ITA 1289/Hyd/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6852 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 12-12-2019
• Assessment Year: 2016-2017
• Appeal Filed On: 16-08-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Capital asset; Cost of acquisition
• Section: 143(3); 22; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A - SMC , HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1289/HYD/2019 ASSESSMENT YEAR: 2016 - 17 SRI SOMASUNDARAM VIJAYA KUMAR, HYDERABAD. PAN: BYMPK 9364 A VS. INCOME TAX OFFICER, WARD - 4(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI D. SATYANARAYANA REVENUE BY: SRI R.S. ARVINDAKSHAN, DR DATE OF HEARING: 12/12/2019 DATE OF PRONOUNCEMENT: 22 /01/2020 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 1, HYDERABAD IN APPEAL NO.10492/2018 - 19/ITO - 4(1)/CIT(A) - 1/HYD/2019 - 20, DATED 25/6/2019 ORDER PASSED U/S. 143(3) R.W.S 147 & U/S. 250(6) OF THE ACT FOR THE A.Y. 2016 - 17. 2. THE ASSESS EE HAS RAISED THE FOLLOWING GROUNDS IN HIS APPEAL: - 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD. CIT(A) ERRED IN CONFIRMING THE INITIATION OF PROCEEDINGS U/S. 147 OF THE ACT. 3. THE LD. CIT(A) ERRED IN CONFIRMING THE DE TERMINATION OF THE INDEXED COST OF CAPITAL ASSET SOLD AS DETERMINED BY THE ASSESSING OFFICER. 4. THE LD. CIT(A) OUGHT TO HAVE SEEN TH A T THE MARKET VALUE FIXED BY THE SUB - REGISTRAR AT RS. 250/ - PER SFT CANNOT BE APPLIED AGAINST THE COST OF CONSTRUCTION ESTI MATED BY THE REGISTERED VALUER AFTER DUE 2 INSPECTION OF THE BUILDING AND CONSIDERING THE TYPE OF CONSTRUCTION; THE QUALITY OF CONSTRUCTION ETC. 5. THE LD. CIT(A) OUGHT TO HAVE CONSIDERED THE FACT THAT THE CONSTRUCTION TOOK PLACE DURING THE FINANCIAL YEAR 1999 - 2000 AND THE COST OF CONSTRUCTION OF THE STRUCTURE WAS RS. 500/ - PER SFT BESIDES INCURRING THE EXPENDITURE ON COST OF INTERIORS. 6. THE LD. CIT(A) ERRED IN NOT CONSIDERING THE GROUND WITH REGA RD TO THE EXPENDITURE INCURRED IN PAY ING COMPENSATION TO THE TENANT WHO WAS RESIDING IN THE SAID HOUSE AT THE TIME OF SALE. 7. ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. 3. A T THE OUTSET, THE LD. AR SUBMITTED BEFORE US THAT THE ENTIRE ADDITION WAS DUE TO THE FACT THAT THE ASSESSEE HAD FAILED TO PRODUCE EVIDENCE WITH RES PECT TO THE COST OF ACQUISITION / CONSTRUCTION OF HIS IMMOVABLE PROPERTY. T HE LD. AR FURTHER PLEADED BY STATING THAT ONE MORE OPPORTUNITY MAY BE PROVIDED TO THE ASSESSEE SO THAT HE CAN PRODUCE THE REQ UISITE EVIDENCE BEFORE THE LD. A O . THE LD. DR ON THE OTHER HAND VEHEME N TLY OPPOSED TO THE SUBMISSION OF THE LD. AR. 4. I HAVE HEARD THE RIVAL SUBMISSION AND CAREFULLY PERUSE THE MATERIALS ON RECORD. TH OUGH I DO NOT APPRECIATE THE FACT THAT THE ASSESSEE HAD FAILE D TO PRODUCE TH E REQUIRED EVIDENCE BEFORE THE LD. AO AT THE TIME OF ASSESSMENT PROCEEDINGS AND FU RTHER FAILED TO DO SO BEFORE THE FIRST APPELLATE AUTHORITY, CONSIDERING THE PRAYER OF THE ASSESSE E , IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE APPEAL BACK TO THE FILE OF THE LD. A O WITH D IRECTIONS TO ACCEPT AND EXAMINE ANY FRESH EVIDENCE PRODUCED BY THE ASSESSEE AND THEREAFTER DECIDE THE MATTER IN ACCORDANCE WITH LAW AND M ERIT AFRESH. A T THE SAME TIME, I ALSO DIRECT 3 THE ASSESSEE TO CO - OPERATE WITH THE LD. REVENUE AUTHORITI ES IN THEIR PROCEEDINGS FAILING WHICH THE LD. R EVENUE AUTHORITIES SHAL L BE AT LIBERTY TO ADJUDIC ATE THE ISSUE BASED ON THE MATERIALS ON RECORD. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOW ED FOR ST ATI STICAL PURPOSES AS INDICATED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON 22 ND JANUARY, 2020 . SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 22 ND JANUARY, 2020. OKK COPY TO: - 1) SRI SOMASUNDARAM VIJAY KUMAR, 6 - 3 - 850/4/B, AMEERPET, HYDERABAD 500 016. 2) INCOME TAX OFFICER, WARD - 4(1), INCOME TAX TOWERS, A.C. GUARDS, HYDERABAD. 3) THE CIT(A) - 1, HYDERABAD 4) THE PR. CIT - 1, HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE