ITO, W-5, Panchkula V. Wg. Cdr. Gurdev Singh Bajwa(Retd.), Panchkula

ITA 1340/CHANDI/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5351 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2018
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 08-09-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: PRITAM SINGH GHUMAN

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NOS. 1342/CHD/2017 ASSESSMENT YEAR: 2008-09 THE ITO, WARD-3. VS. SH. PRITAM SINGH., WARD-3, PANCHKULA H.NO. 27, SECTOR 3, PANCHKULA PAN NO. AAZPG7128G ITA NOS. 1341/CHD/2017 ASSESSMENT YEAR: 2008-09 THE ITO, WARD-2 VS. SMT. MANJIT KAUR KALKAT, WARD-3, PANCHKULA H.NO. 113, SECTOR 2, PANCHKULA PAN NO. AGHPK1907F APPELLANT BY : SH.MANJIT SINGH RESPONDENT BY : SH. PRITAM SINGH GHUMAN & ITA NOS. 1340/CHD/2017 ASSESSMENT YEAR: 2008-09 THE ITO, WARD-5 VS. WG CDR. GURDEV SINGH BAJWA (RE TD.) WARD-3, PANCHKULA 49-B, SECTOR 2, PANCHKULA PAN NO. AGFPB2547J (APPELLANT) (RESPONDENT) APPELLANT BY : SH.MANJIT SINGH RESPONDENT BY : NONE DATE OF HEARING : 08.01.2018 DATE OF PRONOUNCEMENT : 08.01.2018 ORDER 2 PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEALS HAVE BEEN PREFERRED BY THE REVE NUE AGAINST THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX ( APPEALS), [HEREINAFTER REFERRED TO AS CIT(A)], PANCHKULA DATED 17.7.2017 ( IN ITA 1342/CHD/2017) & 18.7.2017 (IN ITA NOS. 1341 & 1340/CHD/2017) . 2. SINCE THE ISSUE INVOLVED IN ALL THE CAPTIONED AP PEALS ARE IDENTICAL, THEY ARE TAKEN TOGETHER FOR HEARING. ITA NO.1342/C HD/2017 IN THE CASE OF SHRI PRITAM SINGH IS TAKEN AS A LEAD CASE. THE ISS UE INVOLVED IN THIS APPEAL IS RELATING TO THE TAXABILITY OF CAPITAL GAINS ON A CCRUAL BASIS. 3. BRIG. PRITAM SINGH (RETD) ADVOCATE, HAS APPEARED IN PERSON AND SUBMITTED THAT THE ISSUE IS SQUARELY COVERED BY THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. BALBIR SINGH MAINI (2017) 86 TAXMAN. 94 (SC) / 398 ITR 531 WHEREIN THE HON'BLE S UPREME COURT HAS AFFIRMED THE DECISION OF THE HONBLE PUNJAB & HARYA NA HIGH COURT RELATING TO THE IDENTICAL ISSUE IN THE CASE OF OTHER ASSESSE E RELATING TO THE SAME TRANSACTION, HOLDING THAT SINCE THE DEVELOPMENT SCH EME DID NOT MATURE AND THE AGREEMENT TO SELL WAS NOT REGISTERED WITH THE C OMPETENT AUTHORITY, HENCE, THE TRANSFER OF PROPERTY WAS NOT COMPLETE, T HE CAPITAL GAINS CANNOT BE ASSESSED ON ACCRUAL BASIS. THE HONBLE HIGH COU RT HELD THAT WHATEVER THE AMOUNT WAS RECEIVED BY THE ASSESSEE ONLY THAT W AS TO BE TAXED. CONFIRMING THE ABOVE FINDING OF THE HON'BLE HIGH CO URT, THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. BALBIR SINGH M AINI (SUPRA) HAS HELD THAT THE ENTIRE ADDITION WAS HYPOTHETICALLY MADE. S INCE AS THE AGREEMENT DID NOT FELL THROUGH, NO TRANSFER OF PROPERTY HAD T AKEN PLACE, AS SUCH, THE 3 ADDITION ON ASSUMING THE ACCRUAL OF THE INCOME WAS NOT SUSTAINABLE IN THE EYES OF LAW. 4. WE HAVE GONE THROUGH THE FACTS OF THESE APPEALS AND WE FIND THAT THE LD. CIT(A) HAS CATEGORICALLY OBSERVED IN HIS S EPARATE ORDERS IN EACH OF THE APPEAL THAT WHATEVER AMOUNT WAS RECEIVED BY THE RESPECTIVE ASSESSEES IN THE AFORESAID TRANSACTION THAT WAS DULY OFFERED FOR TAXATION. HENCE, THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCRUAL B ASIS IN THE LIGHT OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. BALBIR SINGH MAINI RELATING THE SAME TRANSACTION, IS NOT SUSTAINABLE. 4. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY INFIRMI TY IN THE ORDERS OF THE CIT(A) IN DELETING THE IMPUGNED ADDITIONS. TH ERE IS NO MERIT IN THE APPEALS OF THE REVENUE AND THE SAME ARE ACCORDINGLY DISMISSED. 5. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AR E DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 08.01.2018 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR 4