A.VASANTHA, THANJAVUR V. ITO WARD 2, THANJAVUR

ITA 1472/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6016 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 10-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M KARUNAKARAN
• Keywords: Set aside
• Section: 54F; 54; 144

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . !, # !$ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.1472/CHNY/2019 & '& / ASSESSMENT YEAR : 2008-09 SMT. A. VASANTHA, C/O M.M. MEDICALS, 177/1A1, MUTHU RESIDENCY, OPP. MEDICAL COLLEGE, THANJAVUR 613 004. PAN : ANGPV 4200 N V. THE INCOME TAX OFFICER, WARD 2, THANJAVUR. ()*/ APPELLANT) (+,)*/ RESPONDENT) )* - . / APPELLANT BY : SHRI M. KARUNAKARAN, ADVOCATE +,)* - . / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT / - 0# / DATE OF HEARING : 22.07.2019 12' - 0# / DATE OF PRONOUNCEMENT : 01.08.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -1, TRICHY, DA TED 20.03.2019 AND PERTAINS TO ASSESSMENT YEAR 2008-09. 2. SHRI M. KARUNAKARAN, THE LD.COUNSEL FOR THE ASSE SSEE, SUBMITTED THAT THE ASSESSING OFFICER ON THE BASIS OF THE INFO RMATION SAID TO BE 2 I.T.A. NO.1472/CHNY/19 RECEIVED, FOUND THAT THE ASSESSEE SOLD A PROPERTY F OR A TOTAL CONSIDERATION OF 10,00,000/- AS AGAINST THE GUIDELINE VALUE OF 18,00,000/-. ACCORDING TO THE LD. COUNSEL, THE ASSESSEE HAS NOT FILED ANY RETURN OF INCOME. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SE CTION 144 OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') DENYING E XEMPTION CLAIMED BY THE ASSESSEE UNDER SECTION 54 OF THE ACT. THE CIT( APPEALS) ALSO CONFIRMED THE ORDER OF ASSESSMENT WITHOUT ALLOWING THE CLAIM OF INTEREST ON THE LOAN TAKEN AND THE COST OF IMPROVEMENT. ACC ORDING TO THE LD. COUNSEL, THE CIT(APPEALS) CONFIRMED THE ORDER OF AS SESSMENT ON THE GROUND THAT NO MATERIAL IS AVAILABLE ON RECORD. SI NCE THE ASSESSMENT WAS COMPLETED UNDER SECTION 144 OF THE ACT, ACCORDI NG TO THE LD. COUNSEL, THE ASSESSEE COULD NOT FILE NECESSARY DETA ILS, THEREFORE, AN OPPORTUNITY MAY BE GRANTED TO THE ASSESSEE. 3. ON THE CONTRARY, SHRI AR.V. SREENIVASAN, THE LD. DEPARTMENTAL REPRESENTATIVE, SUBMITTED THAT EVEN AFTER SUFFICIEN T OPPORTUNITY, THE ASSESSEE HAS NOT FILED NECESSARY DETAILS, THEREFORE , THE ASSESSING OFFICER WAS FORCED TO COMPLETE THE ASSESSMENT UNDER SECTION 144 OF THE ACT. SINCE THE ASSESSEE HAS NOT FILED ANY RETURN OF INCO ME AND DETAILS WITH REGARD TO INTEREST PAYMENT AND BORROWAL OF LOAN, AC CORDING TO THE LD. D.R., THE CIT(APPEALS) HAS CONFIRMED THE ORDER OF A SSESSMENT. 3 I.T.A. NO.1472/CHNY/19 4. HAVING HEARD THE LD.COUNSEL FOR THE ASSESSEE AND THE LD. D.R., WE HAVE GONE THROUGH THE ORDERS OF BOTH THE AUTHORI TIES BELOW. THE ASSESSEE APPEARS TO HAVE CLAIMED INTEREST ON LOAN A ND COST OF IMPROVEMENT WHILE COMPUTING THE CAPITAL GAINS APART FROM THE CLAIM OF DEDUCTION UNDER SECTION 54F OF THE ACT. IN FACT, T HE ASSESSEE DID NOT APPEAR BEFORE THE ASSESSING OFFICER AND FURNISH NEC ESSARY DETAILS ALSO. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT GIVING ONE MORE OPPORTUNITY TO THE ASSESSEE FOR FURNISHING NECESSAR Y DETAILS WITH REGARD TO LOAN BORROWED AND CLAIM OF DEDUCTION UNDER SECTI ON 54F OF THE ACT MAY NOT PREJUDICE THE INTEREST OF REVENUE IN ANY WA Y. THE VERY OBJECT OF THE SCHEME OF THE INCOME-TAX ACT IS TO COMPUTE THE TAXABLE INCOME AS PER THE PROVISIONS OF THE ACT. THEREFORE, GIVING O NE MORE OPPORTUNITY TO THE ASSESSEE WOULD DEFINITELY PROMOTE THE CAUSE OF JUSTICE. ACCORDINGLY, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ENTIRE ISSUE RAISED BY THE ASSESSEE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE TH E MATTER IN THE LIGHT OF THE MATERIAL THAT MAY BE FILED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4 I.T.A. NO.1472/CHNY/19 ORDER PRONOUNCED IN THE COURT ON 1 ST AUGUST, 2019 AT CHENNAI. SD/- SD/- (. !) ( . . . ) (S. JAYARAMAN) (N.R.S. GANESAN) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 1 ST AUGUST, 2019. KRI. - +056 76'0 /COPY TO: 1. )*/ APPELLANT 2. +,)*/ RESPONDENT 3. / 80 () /CIT(A), TRICHY 4. PRINCIPAL CIT-2, TRICHY 5. 69 +0 /DR 6. :& ; /GF.