Income-tax Officer, V. Shri Anand Prabhakar Datar, Nashik

ITA 1410/PUN/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1735 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 29-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HITENDRA NINAWE
• Assessee Lawyers: N O N E
• Keywords: Tax effect
• Section: 54F; 54

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E , , !'#'' $ , % & BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM / ITA NO. 1410/PN/2015 %' ( ')( / ASSESSMENT YEAR : 2011-12 INCOME TAX OFFICER, WARD 1(5), NASHIK ....... / APPELLANT ' / V/S. SHRI ANAND PRABHAKAR DATAR, PADMAVISHWA OXIRICH APT., RAMESHWAR NAGAR, ANANDWALLI, GANGAPUR ROAD, NASHIK-422013 PAN : AANPD5503A / RESPONDENT ASSESSEE BY : N O N E REVENUE BY : SHRI HITENDRA NINAWE / DATE OF HEARING : 30-05-2016 / DATE OF PRONOUNCEMENT : 30-05-2016 * / ORDER PER VIKAS AWASTHY, JM : THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE OR DER OF COMMISSIONER OF INCOME TAX (APPEALS)-I, NASHIK DATED 04-08 -2015 FOR THE ASSESSMENT YEAR 2011-12. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECORD S ARE: THE ASSESSEE HAD INHERITED 50% SHARE IN BUNGLOW ALONG WITH PLO T AFTER THE DEMISE OF HIS FATHER. DURING THE PERIOD RELEVANT TO THE A SSESSMENT YEAR UNDER APPEAL THE ASSESSEE SOLD THE AFORESAID BUNGLOW ALON G WITH PLOT 2 ITA NO. 1410/PN/2015, A.Y. 2011-12 FOR ` 2 CRORES ON WHICH A CAPITAL GAIN OF ` 82,68,593/- WAS WORKED OUT. THE ASSESSEE CLAIMED DEDUCTION OF ` 40,68,593/- U/S. 54 AND ` 42,00,000/- U/S. 54EC OF THE ACT. THE ASSESSEE HAD PUR CHASED A PLOT FOR CONSTRUCTION OF HOUSE IN THE JOINT NAME ALONG WITH HIS WIFE ON WH ICH DEDUCTION U/S. 54 WAS CLAIMED. THE TOTAL COST OF THE PLOT PURCHASED INCLUDING STAMP DUTY AND REGISTRATION CHARGES WAS ` 42,30,300/-. DURING THE SCRUTINY ASSESSMENT PROCEEDINGS THE ASSESSIN G OFFICER HELD THAT SINCE THE ASSESSEE IS HAVING 50% SHARE IN THE PLOT PURCHASED, THE ASSESSEE IS ELIGIBLE TO CLAIM DEDUCTION U/S. 54 TO THE EXTEN T 50% AND THUS DISALLOWED THE DEDUCTION U/S. 54 TO THE EXTENT OF ` 21,15,150/-. AGGRIEVED BY THE ASSESSMENT ORDER DATED 27-02-2014, T HE ASSESSEE PREFERRED AN APPEAL BEFORE THE COMMISSIONER OF I NCOME TAX (APPEALS). THE COMMISSIONER OF INCOME TAX (APPEALS) AFTER CON SIDERING VARIOUS DECISIONS OF THE HON'BLE HIGH COURTS AND THE CO-O RDINATE BENCHES OF THE TRIBUNAL ALLOWED THE ENTIRE CLAIM OF ASSESSEE U/S. 54. NOW, THE REVENUE IS IN APPEAL AGAINST THE FINDINGS OF COMMISS IONER OF INCOME TAX (APPEALS) IN ACCEPTING THE ENTIRE CLAIM OF THE AS SESSEE AND ALLOWING ` 42,30,000/- AS DEDUCTION U/S. 54 OF THE ACT. 3. NONE IS PRESENT ON BEHALF OF THE ASSESSEE DESPITE SER VICE OF NOTICE. 4. SHRI HITENDRA NINAWE REPRESENTING THE DEPARTMENT FAIRL Y ADMITTED THAT IN THE PRESENT APPEAL BY THE DEPARTMENT TAX EFFECT IS LESS THAN ` 10 LAKHS. 5. WE HAVE HEARD THE SUBMISSIONS MADE BY LD. DR AND EXAM INED THE MATERIAL AVAILABLE ON RECORD. A PERUSAL OF THE IMPUGNE D ORDER AND DOCUMENTS ON RECORD SHOW THAT IN APPEAL, THE REVENUE H AS RAISED SOLITARY ISSUE ASSAILING THE FINDINGS OF COMMISSIONER OF INCOME TAX (APPEALS) IN ALLOWING FULL DEDUCTION OF ` 43,30,000/- U/S. 54F OF THE ACT. 3 ITA NO. 1410/PN/2015, A.Y. 2011-12 UNDISPUTEDLY, THE TAX EFFECT IN THE PRESENT APPEAL IS LESS THAN ` 10 LAKHS. THE CBDT CIRCULAR NO. 21/2015, DATED 10-12-2015 HAS RAISED THE MONETARY LIMIT OF TAX EFFECT FOR FILING APPEALS BY THE DEPA RTMENT BEFORE THE TRIBUNAL TO ` 10 LAKHS. THE CIRCULAR APPLIES TO THE APPEALS TO BE FILED BY THE DEPARTMENT IN FUTURE, AS WELL AS THE APPEALS PENDING BEFORE THE TRIBUNAL FOR FINAL ADJUDICATION. THUS, IN VIEW OF T HE CBDT CIRCULAR THE PRESENT APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED ON ACCOUNT OF LOW TAX EFFECT. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HE ARING ON MONDAY, THE 30 TH DAY OF MAY, 2016. SD/- SD/- ( . . / R.K. PANDA) ( ! ' / VIKAS AWASTHY) #' / ACCOUNTANT MEMBER $ % #' / JUDICIAL MEMBER / PUNE; &# / DATED : 30 TH MAY, 2016 RK *+,%-.#/#)- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ' () / THE CIT(A)-I, NASHIK 4. ' / THE CIT-I, NASHIK 5. !*+ %%,- , ,- , . ./0 , / DR, ITAT, B BENCH, PUNE. 6. + 1 23 / GUARD FILE. // ! % // TRUE COPY// #4 / BY ORDER, %5 ,0 / PRIVATE SECRETARY, ,- , / ITAT, PUNE