Rajitha Dubbaka, Hyderabad V. Dy.Commissioner of Income Tax, Circle-6(1), Hyderabad

ITA 1508/Hyd/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3135 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 17-05-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 24-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Sale consideration of property below Jantri Value; Capital Gains
• Section: 143(3); 50C; 13; 147

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO. 1508/HYD/2017 A.Y: 2012 - 13 RAJITHA DUBBAKA, HYDERABAD. PAN: AIKPD 3751 H VS. DCIT, CIRCLE - 6(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P. MURALI MOHAN RAO REVENUE BY: SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING: 17/05/2021 DATE OF PRONOUNCEMENT: 08 /06/2021 ORDER PER S.S. GODARA, J.M: THIS ASSESSEES APPEAL FOR A.Y. 2012 - 13 HAS ARISEN AGAINST THE CIT(A) - 6, HYDERABADS ORDER DATED 03/07/2017 PASSED IN CASE NO. 00018/2015 - 16/CIT(A) - 6 INVOLVING PROCEEDINGS U/S. 143(3) R.W.S 147 AND U/S. 250(6) OF THE INCOME TA X ACT, 1961 (THE ACT). HEARD BOTH PARTIES. CASE FILES PERUSED. 2 . THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE PLEADED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE L OWER A UTHORITIES ACTION MAKING LONG TERM CAPITAL GAINS ADDITION OF RS.28,42,500/ - AFTER 2 INVOKING SEC TION 50C OF THE ACT. WE NOTICE AT THE OUTSET WITH THE ABLE ASSISTANCE OF BOTH THE PARTIES THAT THE ASSESSEE HAD SOLD / EXECUTED S ALE / T RANSFER D EED DATED 14/2/2011 WHEREIN THE SUBJECT MATTER OF HER RIGHT IS IN FAVOUR OF V ENDEE AS AGAINST ANY LAND OR BUILDING COMPONENT FOR ISSUING PART THERE IN . WE NOTICE IN THIS FACTUAL BACKDROP THAT ALTHOUGH THE REVENUE HAS SOUGHT TO JUSTIFY THE IMPUGNED TRANSFER OF THE ASSESSEESS RIGHT AS AN ADMISSION OF THE SAME BEING A C APITAL A SSET, THE FACT REMAINS THAT WE ARE DEALING WITH SECTION 50C ONLY WHEREIN THE TWIN CATEGORIES OF C APITAL A SSET(S) IS ONLY LAND AND BUILDING THAN SUCH A RIGHT. 3 . WE FURTHER FIND THAT THE ASSESSEE HAS PLACED RELIANC E ON (I) SMT. D. ANITHA VS. ITO REPORTED IN [2015] 55 TAXMANN.COM 538 (HYD. TRIB); (II) TUMMALA VIDYAPAL REDDY VS. ITO (ITA NO. 48/HYD/2018); (III) ITO VS. V. TARA CHAND JAIN [2015] 63 TAXMANN.COM 86 (JAIPUR TRIB.); (IV) SMT. DEVIDRABEN I. BAROT VS. ITO , A HMEDABAD [2016] 70 TAXMANN.COM 235 (AHMEDABAD. TRIB) AND (V) MRS. REKHA AGARWAL VS. ITO, JAIPUR [2017] 79 TAXMANN.COM 290 (JAIPUR - TRIB.), WHEREIN IT WAS HELD THAT SUCH A TRANSFER OF THE VENDOR S LIMITED RIGHT IN RESPECT OF LAND AND BUILDING THAN THE TWIN CATEGORIES OF ASSETS , AS THE CASE MAY BE, DOES NOT COME WITHIN THE PURVIEW OF APPLICATION OF SECTION.50C OF THE ACT. WE, THEREFORE, DELETE THE IMPUGNED LONG TERM GAINS ADDITION IN ISSUE AMOUNTING TO RS. 28,42,500/ - FOR THIS PRECISE REASON ALONE. ALL OTHER PLEADINGS ON MERITS ARE RENDERED I NFRUCTUOUS . 3 4 . T HIS APPEAL OF THE ASSESSEE IS ALLOWED IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 08 TH JUNE, 2021. SD/ - SD/ - (L.P. SAHU) ( S.S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 08 TH JUNE , 2021. OKK COPY TO: - 1) SMT. RAJITHA DUBBAKA, C/O. P. MURALI & CO., CHARTERED ACCOUNTANTS, 6 - 3 - 655/2/3, IST FLOOR, SOMAJIGUDA, HYDERABAD - 82. 2) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 6(1), HYDERABAD. 3) THE CIT(A) - 6, HYDERABAD . 4) THE PR. CIT - 6, HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE