Jayaram Chigurupati, Secunderabad V. ITO., Ward-12(1), Hyderabad

ITA 1407/HYD/2014

• Counselvise Citation: 140722514 RSA 2014
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-12-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 18-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B RAMA KRISHNA
• Assessee Lawyers: M V ANIL KUMAR
• Keywords: Cost of acquisition

Judgement Text

ITA NO.1407 OF 2014 JAYARAM CHIGURUPATI HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.1407/HYD/2014 (ASSESSMENT YEAR: 20101-11) SRI JAYARAM CHIGURUPATI 345A, ROAD NO.10, JUBILEE HILLS, HYDERABAD 500033 PAN:ACCPC 2736 K VS. INCOME TAX OFFICER WARD 12(1) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI M.V. ANIL KUMAR, ADVOCATE DEPARTMENT BY: SHRI B. RAMAKRISHN A, (DR) DATE OF HEARING: 19/12/2014 DATE OF PRONOUNCEMENT: 19/12/2014 O R D E R PER J. SUDHAKAR REDDY, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED A GAINST THE ORDERS OF THE CIT (A)-II, HYDERABAD,, DATED 13.05.2 014 FOR THE A.Y 2010-11 ON THE FOLLOWING GROUNDS: 1. YOUR APPELLANT SUBMITS THAT THE CIT (A) OUGHT T O HAVE CONSIDERED THE ENTIRE REDEMPTION AMOUNT OF RS.5,32,89,350/- FROM BIRLA SUN LIFE MUTUAL FUNDS A S TAXABLE INCOME. 2. YOUR APPELLANT SUBMITS THAT THE REDEMPTION OF BI RLA SUN LIFE MUTUAL FUNDS IS LONG TERM CAPITAL GAINS AN D TAXED ACCORDINGLY AFTER ALLOWING INDEXATION OF COST . 3. THE CIT (A) AS WELL AS THE AO ERRED IN NOT GIVIN G CREDIT FOR THE ENTIRE TAX DEDUCTED AT SOURCE (TDS) AS PER FORM 26AS. YOUR APPELLANT SUBMITS THAT THE INCOME ON WHI CH TAX HAS BEEN DEDUCTED WAS BEING SUBJECTED TO TAX, T HEIR ITA NO.1407 OF 2014 JAYARAM CHIGURUPATI HYDERABAD PAGE 2 OF 3 BEING NO DISPUTE ON THIS FACT, THE AO SHOULD HAVE G IVEN CREDIT FOR ENTIRE TDS. 4. THE CIT (A) AS WELL AS THE AO WITHOUT VERIFICATI ON OF THE SALARY TDS CERTIFICATE IN FORM 16, DISALLOWED T HE DEDUCTION OF RS.52,200/- UNDER CHAPTER VIA OF THE INCOME TAX ACT, 1961. 5. THE AO OUGHT TO HAVE ALLOWED THE SETOFF OF THE C ARRY FORWARD OF LOSSES FROM THE PREVIOUS YEARS AS PER TH E ASSESSMENT ORDER OF THE RESPECTIVE PREVIOUS YEARS KNOWN TO THE DEPARTMENT AND SUBMITTED DURING THE ASSESSMENT PROCEEDINGS. 2. WE HAVE HEARD SHRI M.V. ANIL KUMAR, THE LD COUNS EL FOR THE ASSESSEE AND SHRI B. RAMAKRISHNA, LD DEPARTMENT AL REPRESENTATIVE. 3. ON A CAREFUL CONSIDERATION OF THE RIVAL CONTENTI ONS, PERUSAL OF THE PAPERS ON RECORD AND ORDERS OF THE AUTHORITI ES BELOW, WE HOLD AS FOLLOWS. IN THIS CASE THE LD CIT (A) HAS NO T CONSIDERED THE SUBMISSIONS OF THE ASSESSEE ON 9.7.2014 AND THE EAR LIER SUBMISSIONS DATED 13.05.2014, WHEREBY HE HAS CONTEN DED THAT THE INDEXED COST OF ACQUISITION SHOULD BE DEDUCTED FROM THE SALE PROCEEDINGS FOR THE PURPOSE OF COMPUTATION OF CAPIT AL GAIN. THIS, IN OUR VIEW, IS A GROSS ERROR COMMITTED BY THE LD C IT (A), WE DO NOT UNDERSTAND HOW THE GROSS RECEIPTS ARE BROUGHT T O TAX. AS THE ASSESSEE WAS OUT OF THE COUNTRY, HE COULD NOT PRODU CE THE DETAILS BEFORE THE AO. THE SAME WERE PRODUCED BEFORE THE LD CIT (A) AND SHE FAILED TO CONSIDER THE SAME. 4. THUS WE RESTORE THE MATTER TO THE FILE OF THE AO WITH A DIRECTION TO COMPUTE THE CAPITAL GAIN AFTER GRANTIN G DEDUCTION OF THE INDEXED COST OF ACQUISITION. AS WE ARE SETTING ASIDE THE ISSUE OF COMPUTATION OF CAPITAL GAIN (GROUND NOS. 1 & 2) TO THE FILE OF ITA NO.1407 OF 2014 JAYARAM CHIGURUPATI HYDERABAD PAGE 3 OF 3 THE AO, WE ALSO SET ASIDE THE OTHER ISSUES RAISED B Y THE ASSESSEE IN GROUND NOS. 3, 4 AND 5 OF THIS APPEAL FOR DE NOV A ADJUDICATION. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH DECEMBER, 2014. SD/ - SD/ - (SAKTIJIT DEY) (J. SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 19 TH DECEMBER, 2014. VNODAN/SPS COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE BY ORDER