Mohsin Bin Mubarak , Hyderabad V. Income Tax Officer, Ward-7(1), Hyderabad

ITA 1697/Hyd/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1543 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 03-06-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 14-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V APARNA
• Assessee Lawyers: S RAMA RAO
• Keywords: Sale consideration of property below Jantri Value
• Section: 50C; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMEBR ITA NO. 1697/HYD/2018 ASSESSMENT YEAR: 2007-08 MOHSIN BIN MUBARAK, HYDERABAD. PAN ACDPA8655Q VS. ITO WARD 7(1), NIRMAL. (APPLICANT) (RES PONDENT) ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : SMT. V. APARNA DATE OF HEARING : 03-06-2019 DATE OF PRONOUNCEMENT : 14-06-2019 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS ASSESSEES APPEAL FOR THE A.Y 2007-08 AGAI NST THE ORDER OF THE LD. CIT(A)-3, HYDERABAD DATED 07.0 6.2018. 2. BRIEF FACTS OF THE CASE ARE THAT, THE ASSESSEE S OLD HIS PROPERTY BEARING MUNICIPAL NO. 19-3-543/4, 5 AND 6, ADMEASURING 174.12 SQUARE YARDS EQUIVALENT TO 145.5 8 SQUARE METERS, SITUATED AT ALI NAGAR, (GOVIND BAGH) , HYDERABAD FOR A CONSIDERATION OF RS. 7,62,500/- AS AGAINST THE SRO VALUE OF RS. 17,84,000/- ON WHICH STAMP DUT Y WAS COLLECTED. SINCE HE DID NOT FILE HIS RETURN OF INC OME ADMITTING THE CAPITAL GAIN, A NOTICE U/S 148 OF THE ACT WAS 2 ITA.NO. 1697/HYD/2018 MOHSIN BIN MUBARAK, HYDERABAD.. ISSUED TO THE ASSESSEE ON 26.03.2014, IN RESPONSE T O WHICH, THE ASSESSEE FILED HIS RETURN OF INCOME DECL ARING INCOME OF RS. 64,510/-. THE ASSESSEE WAS ASKED TO EXPLAIN THE SALE CONSIDERATION RECEIVED FROM THE SALE OF PR OPERTY. THE ASSESSEE SUBMITTED THAT HE HAD TO SELL THE PROP ERTY IN ORDER TO MEET SOME COMMITMENTS SUCH AS ONE OF THE LABOURER WORKING FOR THEM DIED AT THE SITE AND ASSE SSEES FATHER ALSO FELL ILL AND HAD TO UNDERGO BYPASS SURG ERY AND BEING THE ELDEST SON, THE ASSESSEE WAS IN NEED OF M ONEY AND HAD TO SELL THE PROPERTY FOR LOWER PRICE. IT W AS SUBMITTED THAT SINCE HIS INCOME FROM OTHER SOURCES WAS BELOW TAXABLE LIMIT, HE DID NOT FILE THE RETURN OF INCOME. 3. THE A.O WAS NOT SATISFIED WITH THE ABOVE EXPLANA TION OF THE ASSESSEE. HE APPLIED THE PROVISIONS OF SEC. 50C OF THE ACT AND CONSIDERED RS. 17,84,000/- AS THE CONSIDERATION RECEIVED FOR THE PROPERTY AND COMPUTE D THE SHORT-TERM CAPITAL GAIN THEREON AND ASSESSED THE TO TAL INCOME AT RS. 9,86,010/-. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A), WHO DISMISSED THE SAME ON THE GROUND THAT NEITHER THE ASSESSEE NOR HIS REPRESENTA TIVE APPEARED AND FILED ANY DETAILS BEFORE HIM. AGAINST THIS ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFO RE US. 3 ITA.NO. 1697/HYD/2018 MOHSIN BIN MUBARAK, HYDERABAD.. 4. UPON HEARING BOTH THE PARTIES AND ON PERUSED OF MATERIAL ON RECORD, WE FIND THAT THOUGH THE ASSESSE E HAS CITED THE REASONS FOR SALE OF PROPERTY AT A LESSER RATE AS COMPARED TO THE SRO VALUE, THE A.O HAS NOT VERIFIED THE SAME AND THE CIT(A) HAS NOT CONSIDERED THE APPEAL O N MERITS BUT HAS DISMISSED THE APPEAL FOR NON-APPEARA NCE BEFORE HIM. IN VIEW OF THE SAME, WE DEEM IT FIT AN D PROPER TO REMAND THE ISSUE TO THE FILE OF THE A.O WITH A D IRECTION TO EXAMINE THE VERACITY AND ACCEPTABILITY OF THE AS SESSEES CONTENTIONS FOR THE SALE OF THE PROPERTY AT A LESSE R PRICE AND IF IT IS FOUND THAT SUCH CIRCUMSTANCES EXISTED AT THE TIME OF SALE, THEN THE PROVISIONS OF SEC. 50C OF TH E ACT SHALL NOT BE APPLIED. ACCORDINGLY, THE ASSESSEE AP PEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 14 TH JUNE, 2019 SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 14 TH JUNE, 2019 KRK/VINODAN 4 ITA.NO. 1697/HYD/2018 MOHSIN BIN MUBARAK, HYDERABAD.. 1) SRI MOHSIN BIN MUBARAK, H. NO. 11-4-169/1, F.NO. 405, ANH, APARTMENTS, A.C. GUARDS, HYDERABAD. 2) ITO, WARD 7(1) NIRMAL. 3) CIT(A)-3, HYDERABAD. 4) PR.CIT-5, HYDERABAD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HY DERABAD. 6) GUARD FILE.